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 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 positive momentum is expected to persist in the upcoming sessions, despite potential consolidation. Below are some trading ideas for the near term.
The Nifty 50 is expected to consolidate with a hurdle at 24,200 on the higher side and support at 23,800. Here are some trading ideas for the near term.
Praj Industries climbed above all key moving averages in a single day and formed robust bullish candlestick pattern on the daily charts with significantly higher volumes.
Praj Industries formed bullish candlestick pattern with upper and lower shadows on the daily charts, with above average volumes. The stock traded above all key moving averages, with higher highs, higher lows formation.
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.
Given the prevailing conditions, the Nifty Index's trend in the short to medium term appears to be corrective, as long as it remains below the 19,645 levels.
IRB Infrastructure Developers is again gaining momentum after building a strong base at Rs 200 mark. On the weekly chart, we can observe a breakout of the Flag formation, while there is a breakout of the bullish Inverse Head and Shoulders formation on the daily chart.
KPIT Technologies after giving a breakout from the rounding bottom pattern in September 2022 indicated beginning of the trend on the upside.
Bharat Forge was in full swing, seeing a strong gap-up opening and rising 8 percent to settle at Rs 764, and formed a robust bullish candle on daily charts. The stock recouped most of recent losses in a single day run-up.
On immediate basis, 18,000 is the psychological hurdle for the Nifty, while the previous swing low of 17,161 will act as a strong support
RSI (relative strength index) plotted on daily time frame has shown a breakout which again confirms that Navin Fluorine has a strong momentum.
Commodities will be the biggest gainers and as long as the geopolitical heat continues, it will be the dominating market theme, Axis Securities said.
The biggest beneficiaries would be the infrastructure segment, capital goods, real estate, railways, power, fintech, agriculture, defence and banks, say experts. One of them said the Budget will be negative for the entire PSU and PSU bank space since there were no major announcements on divestments.
Technically, 16,800 is long-term trendline support and a previous demand zone while 200-DMA (daily moving average) is placed around 16,600 level, therefore we can expect a pullback rally from here.
Shitij Gandhi of SMC Global Securities expects markets to consolidate at higher levels in coming sessions with bias likely to remain in favour of bulls. However traders should keep stock specific action on radar.
The market has remained volatile as coronavirus cases continue to rise in the country. Experts say every decline is an opportunity to buy quality stocks, with a strong recovery expected once infections reach their peak.
Crude oil prices and rupee movement amid trade tension between US-China and US-Iran are likely to keep markets volatile, an expert said
In the current context, with 13 months corrective phase behind us, we believe both indices are approaching their price wise, time wise correction maturity, aiding to form a base over the next few weeks, which will eventually set the stage for a rally.
Prakash Gaba of prakashgaba.com recommends buying Dabur India with target at Rs 435 and stop loss at Rs 415 and Kajaria Ceremics with target at Rs 512 and stop loss at Rs 493.
A further rise in volatility is likely to put pressure on the markets. It needs to move below 17 for the market to move higher, says Ashish Chaturmohta of Sanctum Wealth Management.
Brokerage house believes Balrampur Chini, Dhampur Sugar and Praj Industries are likely to benefit the most from the Centre’s ethanol policy.
The ideal strategy should be to reduce weak long positions above 11,600, but the sectorial rotation is not ruled out.
Here is a list of top three stocks which could give up to 12% return in short term.
"The positive divergence on secondary indicators are supporting the up move in prices along with multiple supports at its short and long-term moving averages," says Shitij Gandhi, Senior Research Analyst at SMC Global Securities.