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 elevated Put-call ratio and the rise in India's VIX suggest a cautious sentiment and the possibility of profit-booking at higher levels.
Reacting on the above news, stock of many auto and auto-components makers rallied. The Nifty Auto index gained 0.86 percent as Tube Investments, Ashok Leyland, Tata Motors, Bharat Forge, Balkrishna Industries and Bajaj Auto gained 1-3.6 percent.
In an interview to CNBC-TV18 Deven Choksey of KRChoksey Investment Managers shared his reading and outlook on the market and also gave recommendations on various stocks.
Ruchit Jain of Angel Broking advises buying United Spirits with a target of Rs 2525.
Ashish Kyal of Waves Strategy Advisors advises buying Pricol with a target of Rs 132.
SP Tulsian of sptulsian.com in an interview to CNBC-TV18 shares his views on quarterly earnings of companies like Tube Investments, Pricol and Rico Auto among others. He also explains impact of goods and services tax (GST) on certain stocks.
Kunal Bothra of LKP Securities is of the view that one can buy Pricol, Gujarat Heavy Chemicals and Delta Corp.
According to Prakash Diwan of prakashdiwan.in, one can buy UltraTech Cement.
Kunal Bothra of LKP Securities recommends buying Pidilite Industries and Pricol.
Here are top 10 stocks to keep an eye on February 9 - Tata Power, Reliance Infra, DLF, Tata Steel, Jet Airways, Jammu and Kashmir Bank (J&K) Bank, Marico Kaya, Apollo Tyres, IPCA Labs, Balmer Lawrie, TV Today, Technocraft, Vascon Engineers, Pricol AND VA Tech Wabag.
Deven Choksey, MD at KR Choksey Shares and Securities is of the view that one may prefer Subros and Pricol.
Motherson Sumi Systems has target of Rs 225, says Mehraboon Irani, Nirmal Bang Securities. If you look at the balance sheet quite closely I think there are reasons to believe that this stock should possibly end up doing well. The numbers were good. I think the ROCE should be 40% by 2015.