Stock analysis is used by traders to make buy and sell call. It’s an approach to make informed decisions while investing in stocks. Stock analysis can be categorised into – fundamental analysis and technical analysis. Fundamental analysis is evaluation of data from sources, including financial records, economic reports, company assets, and market share. Analysts typically study the company’s financial statements – balance sheet, income statement, cash flow statement, and footnotes. These statements are made available to the investors in the form of quarterly earnings, disclosures to stock exchanges in compliance with the Securities and Exchange Board of India (Sebi) norms. In fundamental analysis, the analysts particularly check for a company's core income, income from other sources, profitability, guidance, assets and liabilities and debt ratio among other parameters. The other method, i.e. the technical analysis focuses purely on statistical data. It works on two assumptions; one, the stock price reflects the fundamentals. Second, the study of past and present movement in prices can help determine the future price trends. Technical analysis primarily deals with price, volume, demand and supply factors. This method is effective only when supply and demand forces influence the market. However, when outside factors are involved in a price movement, technical analysis may not be successful. More
Rajesh Agarwal of AUM Capital recommends buying Kotak Mahindra Bank with stop loss at Rs 1325 and target of Rs 1355 and Larsen & Toubro with stop loss at Rs 1210 and target of Rs 1262.
With challenges on the macro front and increasing political headwinds faced by the BJP heading into the 2019 general elections, Prabhudas Lilladher believes traders are likely to remain cautious
Shares of Maruti Suzuki rallied over 1,000 percent, followed by HDFC Bank (766 percent), TCS (713 percent), and M&M (540 percent) in the last 10 years.
We believe Larsen & Toubro being one of the leaders with presence and capability to execute such big complex projects is better placed amongst its peers.
“I do have a few substitutes to juice up the portfolio, if conditions change,” says Ayon Mukhopadhyay of IIFL Institutional Equities for UK and Europe
Mitessh Thakkar of mitesshthakkar.com is of the view that one can sell DCB Bank with a stop loss of Rs 181.50 and target of Rs 172 and buy Hindustan ZInc with a stop loss of Rs 295 and target of Rs 317 and United Breweries with a stop loss of Rs 1249 and target of Rs 1310.
A rate hike is something which might not be taken in a positive light by most of the sectors
Motilal Oswal expects Nifty EPS to grow 27.4 percent to Rs 579 in FY19 and 19.6 percent to Rs 693 in FY20.
“The Beats-to-misses (BTM) ratio for 4Q was 0.76x indicating that there were more misses than beats this quarter. After the largely positive surprises in 2Q which had a BTM of 1.42x, 3Q and 4Q have witnessed a sequential decline,” JM Financial said in a report.
Rajesh Agarwal of AUM Capital recommends buying RBL Bank with stop loss at Rs 514 and target at Rs 533, Larsen & Toubro with stop loss at Rs 1350 and target at Rs 1408 and Mahindra & Mahindra Financial Services with stop loss at Rs 485 and target at Rs 519.
“Nifty once again challenging critical resistance placed around 10,780 is a glaring possibility.” says Jaydeb Dey, Technical Analyst at Stewart & Mackertich Wealth Management Ltd.
Hadrien Mendonca of IIFL recommends buying V-Guard Industries with target at Rs 276 and stop loss at Rs 232 and a buy also on Yes Bank with target at Rs 348 and stop loss at Rs 306.
"Bharat Electronics Limited looks very attractive. We have a one year target of above Rs 200 and are very bullish on the stock with a longer term perspective for next 2 to 5 years," says Akash Jain, Vice-president, Equity Research at Ajcon Global Services.
"The Index has to close above 10,440 levels for further upmove. If it sustains below or fails to cross this mark, Nifty may witness a correction till 10,330 and 10,270 zone," says Rajesh Agarwal of AUM Capital.
Global brokerage house Citi expects double digit growth for current financial year (FY19) but with some downgrade risks.
"Inverse Head-and-Shoulder pattern formation is now clearly visible. Hence, 'buy-on-dips around critical supports' is the strategy to be followed," says Jaydeb Dey, Technical Analyst at Stewart & Mackertich Wealth Management Ltd.
The consolidation is likely to continue for next 3-4 months. In fact, the entire calendar year is expected to be tough.
"The Fed even is neutral to positive for the markets for the following reasons. a) relief that only two hikes are expected this year, and b) surprisingly the inflation number has not been revised upwards," VK Sharma, Head PCG and Capital Market Strategy at HDFC Securities told Moneycontrol.
Sudarshan Sukhani of s2analytics.com is of the view that one can buy Ashok Leyland, Britannia Industries and Larsen & Toubro and can sell HPCL and Repco Home Finance.
Rajat Bose of rajatkbose.com is of the view that one may buy L&T and Rain Industries.
VK Sharma, Head - PCG and Capital Market Strategy at HDFC Securities is of the view that one can buy Bank of Baroda and Titan Company.
Prabhudas Lilladher expects the Nifty to trade in a range of 9,640-10,500 in the near term.
Krish Subramanyam, Co-Head, Equity Advisory at Altamount Capital suggests buying GAIL India 460 Call while one can do a bear spread in Larsen & Toubro.
Sudarshan Sukhani of s2analytics.com is of the view that one can buy Kotak Mahindra Bank, Shriram Transport Finance, Tata Global Beverage, HDFC, TCS, L&T and ACC and can sell CESC and Cummins India.
Mitessh Thakkar of miteshthacker.com is of the view that one can sell Godrej Industries and can buy Larsen & Toubro, Infosys and NTPC.