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 is expected to gain further strength only if it decisively climbs above the midline of the Bollinger Bands. Below are some short-term trading ideas to consider.
The bearish sentiment may sustain in the short term, given the weakening momentum. Below are some short-term trading ideas to consider.
Bharti Airtel was the biggest gainer in the Nifty 50. The stock has seen decisive breakout of downward sloping resistance trendline adjoining multiple touchpoints and traded above all key moving averages.
The market exhibited an erratic pattern with small candles rising and larger candles falling, raising concerns for future trends.
GAIL India has seen a breakout of falling resistance trendline. The stock has formed strong bullish candlestick pattern on the daily charts with robust volumes and traded above all key moving averages.
Poonawalla Fincorp continued its healthy uptrend for yet another session, and formed robust bullish candlestick pattern on the daily charts, with strong volumes, after breaking out falling resistance trendline.
IDBI Bank has seen Bullish Engulfing kind of pattern formation on the daily charts with strong volumes and recouped all its previous day's losses. The stock rose 6.5 percent to Rs 64.4, the highest closing level since January 9, 2019.
On May 18, HEG shares gained 1.5 percent at Rs 1,241.5, the highest closing since September 2 and formed a bullish candle with long upper shadow on the daily time-frame. The stock has been in a smart uptrend since the beginning of April despite intermittent correction and consolidation
BSE was also in action, climbing over 4 percent to Rs 521, continuing uptrend for fifth consecutive session. The stock has formed long bullish candle on the daily scale with strong volumes and made higher tops higher bottoms formation for fourth straight day.
Rashtriya Chemicals and Fertilisers which rallied nearly 5 percent to Rs 112.4 and formed bullish candle which to some extent resembles bullish engulfing kind of pattern on the daily charts after taking support at around Rs 105 or 200-day EMA (exponential moving average).
While the moving average convergence and divergence (MACD) indicator is experiencing an upward centerline crossover, the relative strength index (RSI), a momentum indicator, is positively poised in Poonawalla Fincorp.
Coromandel International has surpassed its 50 DEMA resistance. It has formed higher top and higher bottom on daily line chart. It is on the verge of breaking out from downward sloping trend line on the daily charts. Volumes have gone up along with the price rise recently.
There is a possibility of Nifty may test psychological 18,000 mark followed by 18,200 in coming sessions, with strong support at 17,800-17,650 area, and also if the index surpasses the downward sloping resistance trendline adjoining highs of December 1, 2022 (record high) and January 24, 2023, then more upward move may be on cards, experts said.
Poonawalla Fincorp has given a downward consolidation breakout on the daily chart, suggesting a rise in optimism. In addition, the stock has moved above the important near term moving average.
The monetary policy acts with lags, it may take 3-4 quarters for the policy rate to be transmitted to the real economy, and the peak effect may take as long as 5-6 quarters, said Dhiraj Relli of HDFC Securities.
L&T Technology Services was also in action, rising 3 percent to Rs 3,426 and formed bullish candle on the daily charts with upper shadow, with higher high higher low formation after forming Bullish Engulfing kind of pattern in previous session. The volume remained high for yet another session.
Poonawalla Fincorp surged 14 percent to Rs 280.5 and formed big bullish candle on the daily charts, in fact engulfing both previous red candles, with large volumes. The stock has seen a decisive breakout of big horizontal resistance trend line adjoining February 16 and December 23.
ONGC has seen a decent correction from the highs in last couple of months as the crude Oil prices have cooled off from their highs. However, the prices are now showing signs of some pullback move as it has given a breakout from a trendline resistance.
RPG Life Sciences has broken out from the Bullish Flag pattern on the daily chart. Stock has been forming higher tops and higher bottoms on the daily charts. Recently the stock price registered fresh all-time high at Rs 804 and current levels are very near to that level.
DCB Bank share price surged 9.5 percent to nearly Rs 98 and has seen formation of robust bullish candlestick pattern on the daily charts with high volumes after giving a break out of long downward sloping resistance trend line in previous session, adjoining January 6, 2021 and July 29, 2022. The stock continued its run up for fourth consecutive session.
Poonawalla Fincorp has been forming higher top and higher bottom on the daily chart. It has broken out from the symmetrical triangle pattern with rising volumes on the daily chart.
Stocks that were in action included Sobha which surged 10 percent to Rs 641 and formed bullish candle on the daily charts with large volumes, sustaining uptrend for third straight session especially after formation of Morning Star kind of pattern on Tuesday (not exactly).
Oberoi Realty has witnessed a breakout of symmetrical formation to resume its uptrend and took support at 20-DMA, where a decisive move above Rs 1,000 may lead to a rally towards Rs 1,100
Tight liquidity conditions combined with specific credit issues (IL&FS) led to a big reset for NBFCs as well as housing finance companies (HFCs).
Experts feel that the pain in NBFC stocks are likely to continue in the near term and any corrections in some of the stocks are a golden opportunity to buy.