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 recent low of 15,671 is not far from the current levels now and the moment we slide below it, it will create a panic kind of situation in the market. Below this, 15,350-15,200 are the next levels to watch out for, says Sameet Chavan of Angel One
ITC has shown a relative outperformance within the FMCG space in last few weeks. In spite of the market correction in last week, this stock has managed to give positive returns and the '20 DEMA' has been acting as a support
Going forward, looking at the technical structure and the sentiments among the market participants, indecisiveness could be sensed as the range is getting narrower over the period.
Experts said trades could continue to be rangebound in the coming days and if the Nifty 50 closes decisively above 18,000-18,100, then it may rally towards record high levels.
Here's what Gaurav Sharma of Globe Capital Markets, recommends investors should do with these stocks when the market resumes trading today.
Following the rally over the past one month, experts suggest that investors book timely profits and avoid aggressive buying. According to them, the next resistance on the Nifty 50 is expected at 18,000, with support at 17,600.
Reacting on the above news, stock of many auto and auto-components makers rallied. The Nifty Auto index gained 0.86 percent as Tube Investments, Ashok Leyland, Tata Motors, Bharat Forge, Balkrishna Industries and Bajaj Auto gained 1-3.6 percent.
We advise investors to book partial profits if their targets have been met, said Rahul Sharma of Equity99
The banking index is facing a strong hurdle in the range of 36,200-36,400, above which, the index could continue its journey towards 37,000.
Various segments of equities related to agriculture and rural spending are expected to see huge growth in the monsoon season.
A good monsoon will likely bring a bumper harvest that will ease supply-side constraints and will also help in curbing inflation, say experts
Nifty, on the weekly chart, is locked within a rising channel pattern and is currently trading near the lower band of the rising channel pattern which will act as an important support zone in the weekly interval.
After a bull run in FY21, the new fiscal year has begun with some uncertainty because of the second wave of COVID-19 and higher commodity prices but analysts remain optimistic about economic growth and corporate earnings, making several stocks very attractive.
Brokerages and market experts have been positive about the auto space of late as the sector is among the key beneficiaries of the economic recovery and low-interest rates.
Any close below 14,336 would mean that the correction could accelerate further and Nifty could attempt to touch 14,000.
Brokerage firm ICICI Direct pointed out that a healthy festive period and elements of pent-up demand, channel restocking led the auto industry to remain firmly on the recovery path in Q3FY21.
The majority of the oscillator indicators are placed in overbought zones suggesting some minor correction in the coming days.
Global brokerage firm CLSA, as per CNBC-TV18, expects the passenger vehicle (PV) segment to outperform in FY22. It has increased FY21-23 PV forecasts by 7-9 percent and for two-wheelers (2Ws) by 1-3 percent.
A significant pick-up in demand was seen for commercial vehicles (CV) while passenger vehicles (PV), two-wheelers (2W) and tractors also did well.
Pharma could remain an outperformer as it has witnessed double bottom near 11,000 levels, witnessing a sharp up-move.
The year 2020 is largely about survival, both health-wise and finance-wise. It is also an opportune time to tweak and tighten the portfolio for the next bull run, said Yes Securities
Nifty will find support near its band of short-term averages of 11,430-11,480 and also 61.8 percent retracement of the recent up move from 10,800 to 12000.
In muted earnings expectations for Q1FY21, beats were much higher than misses and that was one of major reasons and confidence booster for equity market not only in India but globally.
June and March quarter earnings indicated that lot of sectors did not have much impact of COVID-19-led lockdown. As a result, lot of stocks saw an upgrade in rating to buy.
Bank Nifty is likely to outperform Nifty in the coming trading session as it has witnessed a smaller degree sharp V-shape reversal rally on the daily chart and has neglected its previous week's bearish candlestick pattern.