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 Nifty 50 is expected to remain rangebound before moving in a firm direction. Below are some trading ideas for the near term.
SBI Life Insurance Company ended at new closing high and formed strong bullish candlestick pattern with healthy volumes on the daily timeframe, after a decisive breakout of horizontal resistance trendline.
Experts feel 21,000 is expected to be key to watch in the current week, which is full of events including interim budget, and FOMC meet outcome, while on the higher side, 21,500 is likely to be key hurdle, followed by the resistance of 21,700 levels.
The index is likely to consolidate in the monthly F&O expiry week, and if the index takes support and rebounds, then 18,700-18,900 could be the resistance area, whereas 18,500-18,450 could be the next crucial support in case of correction in coming sessions
Natco Pharma has seen a big breakout of around six-week consolidation with strong volumes. The stock has also seen a crossover with 50-day EMA crossing the 200-day EMA in the week gone by, which is a positive sign.
From here on, 16,800 levels will act as immediate support for the Nifty50 and if prices slip below this level, then 16,500 will be the next support zone for the index, says Rohan Patil of Bonanza Portfolio
The Nifty50 is expected to be in the range of 17,500-18,000. Only a break above 18,000 will increase momentum on the upside and trigger fresh buying, says Malay Thakkar
A strong advance-decline ratio in the consolidating market indicates the chances of an upward trend sooner or later.
The actual weakness would start only if Nifty sustains below 10,870, till then, one should continue with a stock-specific positive bias.
As we step into the monthly expiry week, our eyes would be on a few crucial levels. On the upside, 11,250 is the level to watch out for, whereas, 11,050 has now become key support.
On the upside, the Nifty needs to sustain 10,800 for the uptrend to continue towards 11,100 and then possibly 11,350.
On the weekly chart, Nifty has formed a bullish higher top higher bottom pattern. A similar pattern is also observed in the Midcap and Smallcap indices, indicating broad-based rally in the markets.
In terms of market cap, it said it considered micro, small and midcap companies trading at attractive valuations relative to their large cap peers, post the flight to safety driven large cap rally.
Most experts see FII flows moving towards few largecaps in coming year also
The Nifty Midcap index itself fell 18 percent and around 45 stocks included in the index corrected in the range of 30-90 percent in last 18 months.
Crude oil prices and rupee movement amid trade tension between US-China and US-Iran are likely to keep markets volatile, an expert said
Overall, especially after the run in November, the market has been rangebound and stock-specific action has continued, which is likely to be the top theme in the rest of 2019 as well
Experts feel that investors sitting on cash should buy into markets in a scattered manner instead of making a lump sum payment.
Traders can accumulate the stock in a range of Rs 820-Rs 830 for the upside target of Rs 905 level and a stop loss below Rs 765, says Shitij Gandhi of SMC Global Securities.
A sustained trade above 11,264 can trigger a pullback taking it to levels of 11,600-11,750. However, failure to hold support levels of 11,265-11,260 can extend Nifty to 11,200-11,175, says Aditya Agarwala of YES Securities
On the daily charts, the index is trading near its immediate support level of 11,274 (50-DMA). Any violation of this level will trigger further downside towards 11,170 and 11,075 levels.
Rajesh Agarwal of AUM Capital recommends buying Hexaware Technologies with stop loss at Rs 449 and target of Rs 464, Axis Bank with stop loss at Rs 644 and target of Rs 660 and Graphite India with stop loss at Rs 988 and target of Rs 1025.
On the upper side, 11,500 will act as strong resistance, said Sumit Bilgaiyan of Equity99.
Centrum Wealth Research said if Indian corporate earnings can experience long term mean-reversion to those levels at 5.30 percent, robust earnings uptick can be expected.
"If the Nifty falls below the 10,680 mark, it could correct to 10,500 levels on the back of further selling," says Shitij Gandhi of SMC Global Securities