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
Here's what Shrikant Chouhan of Kotak Securities recommends investors should do with these stocks when the market resumes trading today.
Here's what Shrikant Chouhan of Kotak Securities recommends investors should do with these stocks when the market resumes trading today.
Here's what Vikas Jain of Reliance Securities recommends investors should do with these stocks when the market resumes trading today.
Goldman Sachs has a 'buy' on Infosys, Mindtree, TCS, Tech Mahindra & Mphasis. It has a 'sell' on Wipro and a 'neutral' on HCL Tech and L&T Infotech.
With midcaps and smallcaps expected to outperform largecaps, especially after September quarter earnings, this is the right time to build a portfolio, analysts have said.
In October itself, the benchmark indices gained around 4 percent, taking total gains to over 55 percent from March lows. The Nifty Midcap index, too, gained 55 percent while the Nifty Smallcap surged 75 percent.
The benchmark indices and broader markets have rallied more than 55 percent from the lows of March 23, though they have been some correction in the last few sessions.
Given the gradual unlocking of India, sectors which had left aside in previous rally have started participating in the current run up. Hence brokerage houses also initiated coverage with a buy call on several stocks.
Long-term investors should pick their favourite mid and smallcap shares gradually over the next few months, experts say.
As the uncertainty persists, a stock-specific approach is what one needs to follow in this market.
Within the recovery theme, sectors like low-ticket consumer durables, cement, hotels and multiplexes are expected to do well.
Infosys posted an 11.5 percent YoY growth in net profit at Rs 4,233 crore while Wipro posted a flat 0.11 percent YoY growth in net profit at Rs 2,390.40 crore.
Persistent Systems delivered a steady performance in a tough environment, with better-than-expected performance in both revenue and operating profitability.
Elara said NBFCs are expected to bear the brunt of tightening liquidity, down 18.6 percent YoY, whereas banks would benefit, up 69 percent YoY, due to improving credit deposit ratios and improvement in pricing power, given the stress in the NBFC space.
In FY19, part of the revenue shortfall is likely to be reversed and margins may be supported by currency/tax breaks.
Export-oriented companies in IT, pharma & other sectors are seeing more investor interests; due to positive factors like favorable rupee, buy backs & reasonable valuations.
Rajesh Agarwal of AUM Capital recommends buying JSW Steel with stop loss at Rs 345 and target of Rs 368, Cadila Healthcare with stop loss at Rs 388 and target of Rs 410 and LIC Housing Finance with stop loss at Rs 563 and target of Rs 585.
Dyaneshwar Padwal of KIFS Trade Capital sees the Bank Nifty heading towards 28,800 levels if 28,400 is taken out decisively
The rupee's fall is technical in nature and should be viewed in accordance with happenings across the globe.
With its cash balance now, of USD 175m, it will be seeking more acquisitions to expand its geographical reach, mainly in non-US markets, and is not keen on acquiring legacy businesses.
To ride the momentum which is on an upside, the brokerage house recommends investors to add companies which are exhibiting improvement in earnings and showcasing strong volume growth.
The carnage in midcap and smallcaps is a buying opportunity in select stocks
Reliance Securities’ Rajeev Srivastava advises investors to invest in quality stocks, which are less vulnerable to macro concerns and have healthy cash flow visibility
"In Nifty options, maximum open interest for puts is seen at 10,700 followed by 10,600 which is likely to act as crucial support for the market. In calls, 11,000 strike has seen maximum OI," says Ashish Chaturmohta of Sanctum Wealth Management
Rajesh Agarwal of AUM Capital recommends buying Havells India, Tata Motors and State Bank of India.