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
Experts point out that the rabi season ended largely on expected lines and at present, it appears the kharif crop is unlikely to be affected and may see a normal season.
The market is likely to remain in consolidation mode in next week amid corporate earnings, Delhi assembly elections results and domestic data including IIP, CPI and WPI.
The government consistently focuses on development of smart cities across country, especially since they came in to power in 2014.
Sudarshan Sukhani of s2analytics.com recommends buying Berger Paints with stop loss at Rs 540 and target of Rs 560 and Castrol India with stop loss at Rs 134 and target of Rs 146.
Prabhudas Lilladher prefers companies with low debt, good corporate governance, lean working capital cycle and 2-3 years of revenue visibility (order book).
As long as banking index sustains above 31,000 marks, it can extend higher towards 33,000 levels provided by Fibonacci extension. Moreover, trading range for banking index will be 30,800-33,000 for the coming week
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.
Here are 10 stocks where brokerages initiated coverage in August with a buy rating:
Mitessh Thakkar of mitesshthakkar.com recommends buying Bajaj Finance above Rs 2785 with stop loss of Rs 2764 and target of Rs 2840, Vodafone Idea above Rs 33 with stop loss of Rs 32.5 and target of Rs 35 and Petronet LNG with a stop loss of Rs 228 and target of Rs 245.
Ashwani Gujral of ashwanigujral.com recommends buying Jubilant Foodworks with a stop loss of Rs 1300, target of Rs 1345, SRF with a stop loss of Rs 2230, target of Rs 2300 and Sun TV with a stop loss of Rs 570, target of Rs 595.
Ashwani Gujral of ashwanigujral.com recommends buying Titan Company with a stop loss of Rs 1055, target of Rs 1100, Manappuram Finance with a stop loss of Rs 100, target of Rs 112 and Sun Pharma with a stop loss of Rs 430, target of Rs 455.
Traders should keep watching lower time frame oscillators like RSI on hourly price for early indication of the side in which breakout will ultimately happen
Ashwani Gujral of ashwanigujral.com recommends buying Manappuram Finance with a stop loss of Rs 94, target of Rs 106, Siemens with a stop loss of Rs 1055, target of Rs 1100 and ICICI Bank with a stop loss of Rs 375, target of Rs 390.
Prakash Gaba of prakashgaba.com recommends buying BEL with target at Rs 92 and stop loss at Rs 87 and BEML with target at Rs 950 and stop loss at Rs 910.
Jhunjhunwala buys shares through his company Rare Enterprises, his own or wife Rekha’s name as well as in the name of Rakesh Radheshyam Jhunjhunwala.
IT, Consumer and Capital Goods are likely to report solid earnings growth while automobiles, pharmaceuticals, and cement will continue to witness margin pressures leading to subdued earnings
Strong earnings have helped D-Street to skyrocket to fresh record highs in the last two months and stocks which rose in anticipation of good earnings in the small & midcap space delivered over 100 percent net profit growth.
To ride the momentum which is on an upside, the brokerage house recommends investors to add companies which are exhibiting improvement in earnings and showcasing strong volume growth.
Most economists expect the MPC to keep policy rates unchanged but its commentary would be a key thing to watch out for
Commodity prices rallied sharply between February and May 2018, which was beneficial to companies which are directly linked with like metals and select oil stocks, but falling prices is generally good for companies which use these commodities as their raw material.
The carnage in midcap and smallcaps is a buying opportunity in select stocks
Rajesh Agarwal of AUM Capital recommends buying Infosys with stop loss at Rs 1290 and target of Rs 1349, Bajaj Finance with stop loss at Rs 2430 and target of Rs 2518 and Titan Company with stop loss at Rs 825 and target of Rs 855.
"I would give rating of 9 out of 10. I would be happier if GST brings petrol and diesel under the GST ambit," Sumit Bilgaiyan of Equity99
Mitessh Thakkar of mitesshthakkar.com recommends buying Page industries with a stop loss of Rs 24900 and target of Rs 27000 and Marico around Rs 335 with stop loss of Rs 327 and target of Rs 351.
In terms of returns, the BSE Midcap and Smallcap indices saw a cut of 11 percent and over 14 percent so far in 2018, compared to an over 1 percent return in the Sensex.