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 market's valuations have turned higher than long-period average and investors should be cautious and selective in picking stocks, say experts .
The brokerage now expects Nifty earnings to grow at a CAGR of 16 percent over FY20-22, albeit on a low base and values the Nifty at 10,300 i.e. 1.2x PEG on FY22E EPS of Rs 543 with corresponding Sensex target placed at 34,800.
The Nifty50 and the Sensex have rallied 41 percent from the lows of March 23, with leading sectors gaining 32-55 percent during the period.
The timely onset of the monsoon season from June 1 and the likely normal rainfall projects a strong outlook for the kharif sowing season, which is critical at such a challenging time.
The Nifty Auto Index has corrected by about 21 percent in the past two months, compared to an18 percent decline in the Nifty.
Use this sharp correction to accumulate long positons with SL of 8900 immediate resistance is seen around 9400 levels.
In the very near term, after the recent sharp rally, some consolidation or small retracement as mean reversion is highly probable.
Automobile production has been hit by coronavirus disruptions and the BS-VI transition, say experts.
Mitesh Thakkar of miteshthakkar.com suggests selling Escorts with a stop loss of Rs 760 for target of Rs 725 and Mahindra & Mahindra with a stop loss of Rs 458 for target of Rs 435.
Mitesh Thakkar of miteshthakkar.com suggests buying HDFC with a stop loss of Rs 2127 for target of Rs 2060.
Prakash Gaba of prakashgaba.com recommends buying Asian Paints with target at Rs 1880 and stop loss at Rs 1830 and Axis Bank with target at Rs 750 and stop loss at Rs 730.
Most brokerages feel 2020 could be the year for broader markets to do well
Mitesh Thakkar of miteshthakkar.com recommends buying Ashok Leyland with a stop loss of Rs 84 for target of Rs 92 and Dish TV with a stop loss below Rs 13 for target of Rs 14.5.
Once Nifty surpasses 12,300 resistance zones, it can march towards 12,500 and subsequently towards 12,600 levels which are near the rising trend line and upper band of Bollinger Band
Target as per Cup & Handle pattern is calculated by adding height of Cup to neckline which comes to Rs 575, however one can book profits near previous swing high which is around Rs 570.
Prakash Gaba of prakashgaba.com recommends buying Interglobe Aviation with target at Rs 1450 and stop loss at Rs 1385 and Reliance Industries with target at Rs 1575 and stop loss at Rs 1532.
Most experts see FII flows moving towards few largecaps in coming year also
We expect higher price movement in M&M towards previous high Rs 540-550 levels in coming days.
Sudarshan Sukhani of s2analytics.com advises buying Asian Paint with stop loss at Rs 1,760 and target of Rs 1,820.
Sudarshan Sukhani of s2analytics.com recommends buying HCL Tech with stop loss at Rs 542 and target of Rs 585 and ICICI Prudential Life Insurance with stop loss at Rs 487 and target of Rs 515.
Mitesh Thakkar of miteshthakkar.com recommends buying BPCL with a stop loss of Rs 533 for target of Rs 570 and NCC with a stop loss of Rs 59 for target of Rs 65.
Shabbir Kayyumi of Narnolia Financial Advisors said a sustained move above 12,000 will push the index higher towards previous highs, starting around 12,100 and can extend towards 12,400
Most experts believe that the economy, as well as earnings, will pick up in the next financial year
Ashwani Gujral of ashwanigujral.com suggests buying JSPL with stop loss at Rs 119 and target of Rs 130.
Dinesh Thakkar of Angel Broking said though MF inflows this year have slowed down, he was very confident that MF inflows will pick up from here on as market sentiment improves