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
Reliance Securities’ Rajeev Srivastava advises investors to invest in quality stocks, which are less vulnerable to macro concerns and have healthy cash flow visibility
Gaurav Ratnaparkhi of Sharekhan said from trading perspective, one can look to initiate short position, with reversal above 10,805 i.e. the high point of the recent impulsive fall.
“Breaking above 10,860 may extend this leg of the upmove to 10,950 levels,” says Jaydeb Dey of Stewart & Mackertich Wealth Management
We expect, M&M Finance to move higher towards its potential target of Rs 535 which translates into a 9 percent returns, says Hadrien Mendonca of IIFL.
Rajesh Agarwal of AUM Capital recommends buying HPCL with stop loss at Rs 309 and target of Rs 323, Apollo Tyres with stop loss at Rs 269 and target of Rs 282 and Vedanta with stop loss at Rs 224 and target of Rs 236.
"For the medium to long term, we are positive on financials and automobiles," says Siddharth Sedani of Anand Rathi
Prakash Gaba of prakashgaba.com is of the view that one can buy United Spirits with target at Rs 3430 and stop loss at Rs 3330 and sell Hindustan Unilever with target at Rs 1554 and stop loss at Rs 1574.
"Mahindra & Mahindra Financial Services is one of the top bets for rural market recovery. Impetus on doubling of farm income over next 5 years will boost domestic tractor business of M&M," says Shailendra Kumar, Chief Investment Officer at Narnolia Securities.
Global brokerage house Citi expects double digit growth for current financial year (FY19) but with some downgrade risks.
Here is the list of top 17 stocks that can give up to 99% return.
"The weekly chart now looks quite encouraging and hence, the stock is well poised for a decent move in the near term. One can look to go long around Rs 456 for a target of Rs 486 by following a strict stop loss of Rs 440," says Sameet Chavan of Angel Broking.
Traders need to keep a close eye how the market behaves during the first half of the forthcoming week. Ideally, at present, traders need to be prepared for both possibilities; a small relief rally or a continuation of the ongoing down move.
Persistent Systems and ICICI Lombard, among others, are on investors’ radar on Wednesday.
Going forward, we expect the Nifty to consolidate around its 200-DMA before we resume the downtrend.
The SGX Nifty is also indicating a positive opening in the Indian market, rising 16 points 10,194.50.
Sudarshan Sukhani of s2analytics.com is of the view that one can buy Infosys and can short BPCL and M&M Financial Services.
At this juncture, the Nifty is broadly trading in a range of 10,600 – 10,640 on the higher side; whereas, the lower band is pegged near 10,300 - 10,275. And, either way, breakout or breakdown will dictate the near-term direction of the index," says Aditya Agarwal of Way2Wealth Brokers Pvt. Ltd.
Chandan Taparia of Motilal Oswal Securities is of the view that one can buy Infosys and Ceat and sell HDFC and M&M Financial Services.
Ashwani Gujral of ashwanigujral.com is of the view that one can buy Apollo Tyres and Mindtree and can sell Bank of India, DHFL, Axis Bank and M&M Financial Services.
Ashwani Gujral of ashwanigujral.com recommends buying Bajaj Finserv, Vedanta and Arvind.
Ashwani Gujral of ashwanigujral.com is of the view that one can buy Adani Ports and can sell Axis Bank and Union Bank of India.
Morgan Stanley has Overweight call on PNB with a target price at Rs 215 per share as the company reported stable asset quality and provisions were 12 percent higher than estimate.
Prakash Gaba of prakashgaba.com is of the view that L&T Finance Holdings can climb to Rs 165 while M&M Financial Services may test Rs 480.
Ashwani Gujral of ashwanigujral.com is of the view that one can buy United Breweries and Dredging Corporation and can sell TVS Motor.
Vijay Chopra of enochventures.com advises buying Petronet LNG with a target of Rs 252.