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 see further weakness if it decisively breaks the previous day's low. Below are some short-term trading ideas to consider.
The Nifty 50 is expected to consolidate further, with support at 23,300 and resistance at 23,650. Here are some trading ideas for the near term:
The Nifty is likely to continue its march upwards amid consolidation with hurdle at 19,500-19,600 levels, whereas the near term support is expected to be 19,300-19,200 levels, followed by crucial support at 19,000, experts said
It is advisable to secure profits at higher levels and avoid complacency until the indicators exit the overbought territory.
Birla Corporation shares rallied 7 percent to Rs 1,092, the highest closing level since September 20 last year and formed robust bullish candlestick pattern on the daily charts with significantly higher volumes. The stock has been making higher highs, higher lows for third consecutive session.
Intermediate trend remains positive for both Nifty and Bank Nifty. Longs should be protected with trailing stoploss of 17,900 in Nifty and 40,000 in the Bank Nifty, says Nandish Shah of HDFC Securities.
Gaurav Dua of Sharekhan expects double-digit returns in CY2021 through with some hurdles in the journey.
Ajit Mishra, VP - Research at Religare Broking expects stock specific activity will be on a higher side in coming days.
Hence here are 11 stocks where brokerages initiated coverage with a buy call, which could give 10-73 percent return: