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 24,500 level is likely to be key resistance as long as the Nifty 50 holds 24,200 support, and above this, 24,800 is the level to watch. Here are some trading ideas for the near term.
Considering the overall chart structure, there is an anticipation of short-term rangebound sentiments.
New India Assurance Company has seen a decisive breakout of long downward sloping resistance trendline on the weekly charts and surpassed previous swing high of February 15, 2021.
Traders are advised to continue with an optimistic approach and now, with other sectors chipping in, we expect a good broad-based buying in the forthcoming week.
Next gap resistance for Nifty is placed at 10,334. Far resistance is seen around 10,550 level which is the 61.8 percent retracement of the entire fall seen from 12,430 to 7,511.
Investec has initiated coverage on ICICI Lombard with buy & New India Assurance with hold.
As many as 20 companies listed on the exchanges with an issue size of more than Rs 1,000 crores. Out of 20 companies, as many as 12 companies have fallen between 2-75 percent since their listing while the rest 40 percent gave positive returns.
Dinesh Rohira of 5nance.com expects the Nifty to trade around 11,810 on upside and 11,670 on the downside on a weekly basis
The stock may be bought in the range of Rs 720-725 for targets of Rs 760-790, keeping a stop loss below Rs 690.
“Failure to trade beyond 10,735, could resume the downside correction in the Nifty, dragging it lower to 10,550-10,325 levels,” says Aditya Agarwala of YES Securities.
Rajesh Agarwal of AUM Capital recommends buying RBL Bank with stop loss at Rs 514 and target at Rs 533, Larsen & Toubro with stop loss at Rs 1350 and target at Rs 1408 and Mahindra & Mahindra Financial Services with stop loss at Rs 485 and target at Rs 519.