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
The consolidation is likely to continue until the benchmark indices decisively break the tight range of the past four days on either side. Below are some trading ideas for the near term.
Glenmark Pharma hit the highest level since 2017. The stock has formed long bullish candlestick pattern on the daily timeframe with strong volumes, and traded above all key moving averages.
Traders should refrain from complacent trades and continue with one step at a time approach.
Lemon Tree's stock is currently experiencing a strong uptrend, characterized by a consistent formation of Higher Highs and Higher Lows. This indicates that the stock is maintaining an upward momentum and is exhibiting a positive trend in its price movements.
Voltas has given a consolidation breakout on the daily chart, suggesting a rise in optimism. Besides, the stock has sustained above the critical moving average. The price rise is backed by a sharp increase in volume.
Lemon Tree Hotels has established a solid base at Rs 72 level and is now poised to break out of a triangular formation upward, which might spark new bullish momentum.
Campus Activewear is moving in a classical upsloping channel formation with an immediate base at 20-day moving average (DMA). It witnessed a bullish pin bar candlestick pattern at 20-DMA during the recent pullback.
For the week, 17,500–17,650 remains a sturdy wall and until it is surpassed convincingly, tentativeness at higher levels will persist
Short term trend of ICICI Securities turned bullish as it closed above its 5 days EMA, first time after April 20 this year, with higher volumes. Momentum oscillators like RSI and MFI have exited from the oversold zone and started rising, suggesting higher possibility of bullish trend reversal in stock price in the coming days.
The overall major trend remains strong as Container Corporation is moving in higher top and bottom formation. The daily weekly and monthly RSI (relative strength index) remains in bullish mode along with positive crossover which supports sustained strength.
The market structure is still weak but there are some signs of a short-term reversal
Short-term trend remains positive for Nifty. Next upside target for Nifty is seen around 18,350 levels, followed by 18,600. Longs should be protected with stop loss of 17,780, says Nandish Shah of HDFC Securities.
As the world reopens, investors can look at companies like IRCTC, IndiGo, Mahindra Holidays among others
As the economy finds its feet again, stocks that were affected the most such as those in contact intensive sectors such as hospitality, tourism and entertainment will get back in favour
Given the gradual unlocking of India, sectors which had left aside in previous rally have started participating in the current run up. Hence brokerage houses also initiated coverage with a buy call on several stocks.
Lemon Tree Hotels' RevPAR was up 1.9 percent YoY at Rs 3,311 in Q3. On a same-hotel basis, RevPAR was up 7.5 percent YoY (with ARR up 5.4 percent and occupancy up 148bp to 76.2 percent)..
In the last three months, Reliance Industries share price has rallied 29 percent and Lemon Tree gained 22 percent.
As many as 20 companies listed on the exchanges with an issue size of more than Rs 1,000 crores. Out of 20 companies, as many as 12 companies have fallen between 2-75 percent since their listing while the rest 40 percent gave positive returns.
The brokerage house believes that occupancies are set to improve, while average room rate is set to improve significantly in the next two to three years.
"At current market price, after this rally, we believe it is fairly valued and would wait for Q4FY18 result and management commentary to take a call in this company," says Akash Jain, Vice-president, Equity Research at Ajcon Global Services.
"Joint Venture with APG is value-accretive as fee income gives Lemon Tree higher revenues/profit share. We have a buy rating with target of Rs 70," says Sumit Bilgaiyan, Founder of Equity99.