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
At the current juncture, we can expect stock-specific action rather than any sharp upside in the index.
Brokerages and market experts have been positive about the auto space of late as the sector is among the key beneficiaries of the economic recovery and low-interest rates.
Brokerage firm ICICI Direct pointed out that a healthy festive period and elements of pent-up demand, channel restocking led the auto industry to remain firmly on the recovery path in Q3FY21.
The focus now will be on the third-quarter results for FY21 starting from this week and we could see individual price performance with respect to the outcome and guidance from the companies.
Global brokerage firm CLSA, as per CNBC-TV18, expects the passenger vehicle (PV) segment to outperform in FY22. It has increased FY21-23 PV forecasts by 7-9 percent and for two-wheelers (2Ws) by 1-3 percent.
A significant pick-up in demand was seen for commercial vehicles (CV) while passenger vehicles (PV), two-wheelers (2W) and tractors also did well.
Gaurav Garg of CapitalVia feels the LTC and reintroducing of Special Festival advance scheme for government employees are expected to boost the consumer demand by additional Rs 36,000 crore.
The banking index managed to give a 'cup and handle' pattern breakout by closing above 21,100 and the target, as per the pattern, will reach 24,000 which suggests a bullish movement ahead in mid-term.
Bank Nifty decisively surpassed major resistances in the last week and managed to close above 20 DMA indicating short term trend has reversed. However previous swing high and crucial resistance is standing near 20000 mark.
The broader structure remains weak as the banking index is underperforming Nifty while trading below its major averages.
This war between USA & China may intensify further & may take ugly shape going forward, which may change World Power Equation post-COVID-19 era, Amit Jain of Ashika Wealth Advisors said.
Prime Minister, Narendra Modi said the package will focus on four factors - Liquidity, Land, Labour and Laws.
The Nifty Auto Index has corrected by about 21 percent in the past two months, compared to an18 percent decline in the Nifty.
Experts point out that the COVID-19 pandemic came in stages across the world and its fading away also will happen in phases over the next few quarters.
Banking Index has formed a higher high and higher low pattern which indicates a short-term bullish trend to continue.
Automobile production has been hit by coronavirus disruptions and the BS-VI transition, say experts.
Every time Nifty approached 8,800-8,850, buying emerged and finally we saw it surpassing 9200 on a closing basis last week. Technically, this development was crucial for our market as we can now see the immediate base getting shifted higher from 8,000 to 8,650-8,800.
Hence every expert on the street advised buying quality stocks in a gradual manner instead of bulk purchases and waiting for the market bottom which no one has found yet in the history.
Nifty has slid below its 100-days exponential moving average on monthly charts which can trigger further selling pressure into the prices in coming sessions once again.
'We expect higher price movement towards resistance zone standing around Rs 6,600-6,700 levels in coming days.'
Mitesh Thakkar of miteshthakkar.com suggests buying HDFC with a stop loss of Rs 2127 for target of Rs 2060.
Nifty is having a strong demand zone in a range of 11200-11100 which has acted as base earlier and there is a possibility that it can hold current fall and it can bounce back towards 11500.
Mitesh Thakkar of miteshthakkar.com recommends buying State Bank of India with a stop loss of Rs 320 and target of Rs 335 and Ambuja Cements with a stop loss of Rs 207.5 and target of Rs 222.
Sudarshan Sukhani of s2analytics.com suggests buying Arvind with stop loss at Rs 42 and target of Rs 46 and HDFC Bank with stop loss at Rs 1200 and target of Rs 1265.
Sudarshan Sukhani of s2analytics.com recommends buying Ashok Leyland with stop loss at Rs 84.80 and target of Rs 88 and M&M Financial Services with stop loss at Rs 348 and target of Rs 355.