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
For Prince Pipes, the daily and weekly strength indicator RSI is in a bullish mode, indicating strength in the short to medium- term time frame
Experts remain hopeful of a rebound as the Nifty has been defending 16,800-16,900 on a closing basis for almost 10 sessions despite high volatility
Downward sloping trend line breakout in Prince Pipes was seen on the daily charts. Price breakout is accompanied by a jump in volumes.
The daily strength indicator RSI and the momentum indicator Stochastic both have turned bearish along with negative crossover which supports bearish sentiments ahead.
Since FY17, the market's performance was mostly driven by a handful of stocks, as broader indices underperformed significantly.
"Long term investors should not get carried away by such instant short term outperformance and can have exposure upto 20-25 percent in few promising quality mid & small cap stocks," Prashanth Tapse said.
The market is expected to break out of its 3-month high soon and Nifty may hit 10,300 this week itself, feels an expert
JM Financial believes the plastic pipes industry may face short-term challenges owing to the economic downturn led by COVID-19.
With an improvement in sentiment along with the earnings, the outlook for the mid and smallcaps looks positive, says Pankaj Bobade of Axis Securities.
Santosh Meena of TradingBells said the stock looked attractive by its valuation but there was a question mark on its corporate governance.