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 consolidation and rangebound trading may continue until the frontline indices decisively surpass the recent swing high. Below are some short-term trading ideas to consider.
The trend is expected to remain in favour of the bulls, despite intermittent profit booking in the upcoming sessions. Below are some short-term trading ideas to consider.
The market needs to record a strong follow-up rally to confirm the change in trend. Until then, it seems to be in a consolidation phase. Below are some trading ideas for the near term.
The market may attempt a bounce back considering the oversold conditions, but it is unlikely to sustain the same. Below are some trading ideas for the near term.
Brigade Enterprises, Hindustan Petroleum Corporation, Cholamandalam Investment and Finance Company, Britannia Industries, and Whirlpool of India will also be in focus on August 30.
The market is likely to be volatile with a negative bias in the coming sessions. Here are some trading ideas for the near term.
HDFC AMC recorded more than 3 percent gains to Rs 3,894.65, which is near the record closing high of Rs 3,903.85 of February 27 this year. The stock has formed bullish candlestick pattern on the daily charts with significantly higher volumes.
On Budget day, the Nifty 50 is likely to trade in the range of 21,500 on the lower side, and 21,900 on the higher side.
Reliance Industries has seen a decisive breakout of downward sloping resistance trendline adjoining highs of January 16 and January 20, and clocked 7 percent rally to end at record closing high of Rs 2,896.
Triveni Engineering & Industries has seen a strong gap up opening and formed bullish candlestick pattern with long upper shadow on the daily charts. It has seen smart breakout of consolidation range since December 2022, and closed more than 4 percent higher at Rs 317.
The consistent uptrend in all five days of last week after forming a bottom around 17,550 in the previous week raised confidence among market participants
PFC shares rallied nearly 6 percent to Rs 166 and formed long bullish candlestick pattern on the daily scale with above average volumes. The stock remained above key moving averages, with making higher highs higher lows for sixth consecutive session.
With the rate pause, there will be some respite for large debt companies, growth stocks, small and mid-cap space companies, and specific sectors like consumer durables and real estate in the medium term
Indian Energy Exchange has given a breakout from a Pole and Flag pattern with a sharp surge in volumes. The momentum indicators are trading in the strong buying zone which confirms the strength of the stock.
The monetary policy acts with lags, it may take 3-4 quarters for the policy rate to be transmitted to the real economy, and the peak effect may take as long as 5-6 quarters, said Dhiraj Relli of HDFC Securities.
Hindustan Zinc, now has started to get into higher high, higher low formation post October 2021. The stock has shown a bounce to the upside after retesting the Triangle pattern, the breakout was witnessed on November 14, 2022. This confirms the beginning of potential uptrend.
The paper stocks were buzzing last week as we witnessed buying interest in some of the counters with good volumes. Satia Industries has seen a breakout from a long consolidation phase and has resumed its uptrend with a ‘Higher Top Higher Bottom’ structure
Experts feel the market is expected to face resistance at the 17,500 level, but may find it difficult to decisively cross it. They advise caution at current levels and a stock-specific approach.
Selling pressure at higher levels after the sharp rally indicate a pause in the momentum, which is healthy for a further upside, technical experts said.
Every sector participated in the run seen this month, given expected recovery in earnings and economy after slew of measures announced in last one year.
The crucial support zone for Nifty is standing around 10,850 and resistance zone is placed around 11,350 mark and either side movement will decide the future price action.
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.
The geopolitical concerns could continue to keep markets jittery but the technical set up and bounce look good for a higher move to cross the recent high of 10,325 levels.
On a lower side, crucial support is seen at 20 DMA standing around 9,600 mark and any decisive move below this zone can push Nifty lower towards 50 DMA around 9,300 mark.
Once Nifty surpasses 12430 resistance zones, it can march towards 12500 and subsequently towards 12600 levels which are near the Fibonacci extension line.