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
Mehraboon Irani is bearish on oil PSUs due to inefficieny of government to take any bold steps since last one one-and-half months and therefore, he is negative on Oil and Natural Gas Corporation (ONGC) after the company‘s net profit slumped 34 percent.
SP Tulsian of sptulsian.com says he is keeping his neutral stance on all oil marketing PSUs as well as the upstream Oil India and ONGC.
Mehraboon Irani of Nirmal Bang Securities says one may prefer Reliance Industries over Oil and Natural Gas Corporation (ONGC) and Oil India.
One may buy Oil and Natural Gas Corporation (ONGC) with a target price of 375 and Oil India with a price target of Rs 640, says Prayesh Jain of IIFL.
One should hold Oil and Natural Gas Corporation (ONGC), says Jagdish Malkani, Member NSE/ BSE.
According to Pankaj Jain of Sunteck Wealthmax, one may go long in IVRCL as it may be moving out of the F&O series from today.
SP Tulsian of sptulsian.com advises buying HDIL with a target price of Rs 37.50 and Bajaj Finserv with a target price of Rs 688.
While ONGC and Oil India would be larger beneficiaries of this hike, Reliance Industries ' earnings per share (EPS) would also go up by 7-8% and that of ONGC and OIl India would be significantly higher. says Jal Irani, MD - Oil & Gas Research, Macquarie Group.
Rajesh Agarwal of Eastern Financiers recommends buying Oil India, Tata Coffee and Lanco Infratech.
Rajesh Agarwal of Eastern Financiers advised buying Mahindra Group's Mahindra Ugine with a stoploss at Rs 62 and for a target price of Rs 69.
Gautam Sinha Roy of Motilal Oswal Securities advised investors to stick to Idea Cellular and Oil India as both of these stocks are very high quality stocks where he sees secular growth drivers.
Gautam Sinha Roy of Motilal Oswal Securities advised investors to look at Idea Cellular and Oil India. “If there is a big downfall in the market we don‘t see huge downside risk to these stocks,†Roy added.
According to Sudarshan Sukhani of s2analytics.com, one can sell Oil India as the stock is giving the first sign of a breakdown.
Dhirendra Tiwari of Antique Institutional Equities says he has been positive on BPCL, ONGC and Oil India. "Under-recoveries will go down; oil price is also cooling off a bit, which will be significantly positive as far as earnings for these companies are concerned," he adds.
Rustagi says that with the government compensating almost one lakh crore, OMCs may see a five-seven percent earnings upgrade for FY13. Rustagi‘s optimism is not restrained to FY13 only.
Ashu Madan, President of Core Client Group at Religare Securities suggest holding Oil India. He feels the stock can see Rs 600 level in next three months.
Sharmila Joshi, Head of Equity of Peerless Securities advised holding Oil India. She said one could take a call when the stock moves close to Rs 600 level.
One can buy Oil India, says Rajesh Agarwal, Head of Research at Eastern Financiers Limited. “With subsidy burden going down I think it is going to be a big positive for companies like Oil India, Oil and Natural Gas Corporation (ONGC) because diesel prices have been hiked month on month basis, he adds.
Rahul Singh, Head of Equity Research of Standard Chartered Securities said he would go with ONGC and Oil India. According to him, these companies will benefit from hike in gas price that is likely to happen.
SP Tulsian of sptulsian.com is of the view that ONGC may slip to Rs 310.
Ajay Bodke of Prabhudas Lilladher prefers Oil India and ONGC in oil & gas space.
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One can see higher level sin Oil India, says Sudarshan Sukhani of s2analytics.com.
ONGC and Oil India are the best investment ideas in the market at this point of time, says Rajat Rajgarhia, Head of Research, Motilal Oswal Securities.