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 benchmark indices and broader markets have rallied more than 55 percent from the lows of March 23, though they have been some correction in the last few sessions.
However, this period could also offer opportunities to cherry pick some quality equity investment.
Angel remains overweight on discretionary consumption theme with stocks like Safari Industries, Bata, Blue Star and Parag Milk Foods.
HDFC Securities expects Music Broadcast to deliver superior growth and return ratios. It cites economic tailwinds, higher utilisation and price increases in established stations along with contributions from new stations as reasons to bet on ENIL.
The market's upward trajectory was in spite of volatility in stocks traded abroad and crude hitting multi-year highs, primarily because investors continued to be hopeful that earnings would keep getting better.
Here is a list of top 10 stocks which can return up to 35 percent in the next 12 months. For simplicity, we have taken stocks which have a market cap of less than Rs 10,000 crore.
MBL outperformed its closest peer with 18.4 percent CAGR in revenue over FY2013-17 (ENIL reported 13.2 percent CAGR in revenue). On the profitability front too, MBL, with 32.3 percent CAGR in PAT over FY2013-17, has performed much better than ENIL (-5.2 percent CAGR in PAT).
FY19 promises to be a volatile year for equity markets with indices moving 10-20% in either direction. There are plenty of global headwinds which might arrest the liquidity flow while on the other hand uncertainty around general elections, rising crude oil prices, as well as state election, rate action by the central bank is likely to cap upside.
In an interview to CNBC-TV18, SP Tulsian of sptulsian.com shared his views on the market and some stock trading ideas.