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 remain rangebound, though the overall trend continues to be positive. Below are some trading ideas for the near term.
According to experts, the Nifty 50 is likely to inch towards 24,800 as long as it holds the 24,650 level on a closing basis in the coming sessions. However, 24,500 is expected to be an immediate support zone. Here are some trading ideas for the near term.
Poly Medicure has formed Bullish Engulfing candlestick pattern on the daily timeframe and settled way above 20-day EMA. The stock has rallied 6.6 percent to Rs 1,429 with above average volumes.
Finolex Cables shares climbed nearly 7 percent to Rs 1,075 and formed long bullish candlestick pattern on the daily charts, with above average volumes. The stock traded well abvoe all key moving averages.
We have seen breakout of consolidation range in Poly Medicure, which has formed long bullish candlestick pattern on the daily scale with above average volumes. The stock ended at fresh record closing high of Rs 1,222, rising 6.7 percent.
Experts expect the rally to continue in the coming sessions, with the Nifty 50 moving towards 19,100-19,200 levels, after which minor profit booking can't be ruled out.
Poly Medicure has given multiple breakouts on the longer-term chart. These include a symmetrical triangle, long consolidation, and an Inverse Head and Shoulders formation with their single-day all-time high volume.
Multiple bullish setups have occurred on Cigniti Technologies, including a breakout of an ascending triangle formation and a breakout of a flag formation with strong volume. On the weekly chart, it has witnessed a breakout of an Inverse Head and Shoulders formation.
National Aluminium Company shares rose 5.6 percent to Rs 82.65, the highest closing level since January 31 and formed robust bullish candlestick pattern on the daily charts with above average volumes. The stock made higher highs higher lows formation for second consecutive session, with getting back above all key moving averages.
Poly Medicure rose 5 percent to Rs 952.5 and formed big bullish candlestick pattern on the daily charts with strong volumes. In fact, it has seen a breakout of downward sloping resistance trend line adjoining several points from the October high.
The sector was in focus in Union Budget 2021. Finance Minister Nirmala Sitharaman in her Budget speech announced an outlay of Rs 2,23,846 crore for health and well being.
According to SP Tulsian of sptulsian.com, Poly Medicure may touch Rs 500 in next six months.
Sandeep Raina, AVP at Edelweiss RCM Research recommends buying Poly Medicure with a view of more than one and half years.