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 said trades could continue to be rangebound in the coming days and if the Nifty 50 closes decisively above 18,000-18,100, then it may rally towards record high levels.
Volatility index (India VIX) was up 3.2 percent this week. The BSE largecap index rose 0.69 percent, midcap gained 0.36 percent, while smallcap was down 1.27 percent
PE multiple is widely used as a valuation tool that helps in screening a stock on a relative basis.
Ashwani Gujral of ashwanigujral.com suggests buying Bajaj Finserv with a stop loss of Rs 6200, target of Rs 6450 and Larsen & Toubro with a stop loss of Rs 1285, target of Rs 1340.
"We believe the trigger for the current panic is that Padam Chand Gupta, one of the two promoters, gifted nearly 2 percent of his 26 percent holding in the company to an undisclosed relative," says Akash Jain, Vice-president, Equity Research at Ajcon Global Services.
"PC Jeweller is a falling knife. Nobody knows what will be the bottom. We are strongly advising to stay away from the counter," says Sumit Bilgaiyan, Founder of Equity99.
Bulls were in charge of D-Street in an action-packed week. Benchmark indices broke above key resistance levels on strong results from India Inc. except for Axis Bank. Falling rupee kept the IT and pharma pack buzzing.
"We believe one can buy PC Jeweller at current market price post significant correction witnessed in last 3 months was owing to uncertainty in gems & jewellery sector post Nirav Modi – PNB scam," says Akash Jain, Vice-president, Equity Research at Ajcon Global Services.
"PC Jeweller was is in a downtrend but rose on Wednesday with good volumes. We can make long position with good risk-reward ratio with the target of Rs 320 with the stop loss of Rs 295," says
"The Nifty has bigger targets once we successfully close 10,450 levels. Thereon, 10,620/10,640 are levels to watch out for in near term. This is where the stiff resistance would come.," says Mustafa Nadeem, CEO at Epic Research.
Ashwani Gujral of ashwanigujral.com suggests selling PC Jeweller, ICICI Bank and Tata Steel.
Ashwani Gujral of ashwanigujral.com is of the view that one can sell Engineers India and Indian Oil and can buy Can Fin Homes.
Gaurav Bissa, Derivatives Analyst at LKP Securities is of the view that one can buy PC Jeweller and Bharat Financial Inclusion and can sell Coal India.
Ashwani Gujral of ashwanigujral.com recommends buying Titan Company, Canara Bank, Punjab National Bank, Syndicate Bank, PC Jeweller and Dewan Housing Finance Corporation.
Mitessh Thakkar of miteshthacker.com recommends buying Dabur India with a stop loss of Rs 319.90 and target of Rs 332, a buy on Motherson Sumi Systems with a stop loss of Rs 302 and target of Rs 324 and a sell on Pidilite Industries with a stop loss of Rs 886 and target of Rs 844.
Mitessh Thakkar of miteshthacker.com recommends buying Hexaware Technologies with a stop loss of Rs 346.50 and target of Rs 366 and advises selling Hindalco Industries around Rs 232-233 with stop loss of Rs 240 and target of Rs 220.
The Nifty metal Index was down over 2 percent after dragged by stocks like NALCO, JSW Steel, Jindal Steel & Power, Vedanta, Hindalco Industries, NMDC and Coal India.
Ashwani Gujral of ashwanigujral.com recommends buying Interglobe Aviation, PC Jeweller and Ahluwalia Contracts.
Mitessh Thakkar of miteshthacker.com recommends buying Britannia Industries with stop loss of Rs 4785 for target of Rs 5000 and Infosys with a stop loss of Rs 1144 for target of Rs 1190.
Ashwani Gujral of ashwanigujral.com recommends selling Motherson Sumi, Bajaj Finance, HDFC, Sun Pharma, Reliance Capital and PC Jeweller.
Ashwani Gujral of ashwanigujral.com is of the view that one can sell SBI, ICICI Bank, LIC Housing Finance and Adani Enterprises and can buy Dabur India and PC Jeweller.
Ashwani Gujral of ashwanigujral.com recommends buying Reliance Industries, Balkrishna Industries and Sonata Software.
Sandeep Wagle of powermywealth.com is of the view that one can buy Balkrishna Industries and can sell PC Jeweller.
Prakash Gaba of prakashgaba.com is of the view that Infibeam can climb to Rs 165 while PC Jeweller may slide to Rs 520.
Sudarshan Sukhani of s2analytics.com is of the view that one can buy Infosys, DHFL, Interglobe Aviation, M&M and South Indian Bank and can sell Andhra Bank.