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 may attempt to continue its upward journey amid rangebound trading in the upcoming sessions. Below are some short-term trading ideas to consider.
The Nifty 50 may rebound after this minor correction, although consolidation appears to be ongoing. Below are some trading ideas for the near term.
Overall, the market trend is expected to remain positive despite occasional consolidation. Here are some trading ideas for the near term.
NHPC has seen a breakout of horizontal resistance trendline adjoining multiple touchpoints and has formed a bullish candlestick with upper & lower shadows on the daily scale with healthy volumes
After hitting three-and-half-month low, Finolex Cables rebounded smartly in last two sessions and climbed back above 200-day EMA, which is a positive sign. The stock formed long bullish candlestick pattern on the daily charts, with above average volumes.
Greenpanel Industries surged 14 percent to Rs 312.5, the highest closing level since January 31 this year. The stock has formed large bullish candlestick pattern on the daily charts with significantly higher volumes and also there was an expansion of Bollinger band on both sides.
Titagarh Wagons is a classical uptrend where it is witnessing Bullish Flag formation with closing above its 20-DMA (day moving average). The upside momentum is likely to continue for an immediate target of Rs 150 while Rs 115 will act as a strong support level.
Experts expect some consolidation in the key indices and adjustments to continue in individual stocks. For the week ahead, in case of a consolidation, one should focus on stock-specific moves, which will provide excellent trading opportunities, they said.
The market can expect more earnings upgrades if the strong corporate earnings reported in the March quarter are followed by quick winding of restrictions in various states and faster revival of the economy.
After March quarter earnings and recent correction in stock prices, many stocks got an upgrade in rating from brokerages
Prism Johnson and Somany Ceramics are still available at low valuation while Kajaria Ceramics is the market leader (9 percentas on FY18) and margin leader (17 percent as on FY18) in the ceramic tiles industry.
In the current week, selling pressure was intensified on the breach of lower band of the broader consolidation range of 10300.
Going forward, we expect the market to consolidate and form a good base in the range of 10300–10600. However, we believe this consolidation will make markets healthier and offer an incremental buying opportunity.
Gaurav Ratnaparkhi of Sharekhan is of the view that one may buy Jet Airways with a target of Rs 795.
Failure to cross 11,100 can trigger profit booking dragging the Index lower to levels of 10,500-10,250. The Bank Nifty is also showing strength making new highs which can take the headline Index Nifty to 11,100 to 11,400 levels.
Sameet Chavan of Angel Broking is of the view that one may sell OBC with a target of Rs 110.
Ashwani Gujral of ashwanigujral.com recommends buying Reliance Capital, Prism Cement and Future Consumer.
We believe the current breather will make the markets healthier by hiving off overbought conditions developed after the steady rise over the last five months.
Ashwani Gujral of ashwanigujral.com is of the view that Bhushan Steel can move 10-15 percent higher while Escorts may test Rs 650.
Ashwani Gujral of ashwanigujral.com recommends buying Anant Raj, Chambal Fertilisers, Vijaya Bank, CESC and Prism Cement.
Ashwani Gujral of ashwanigujral.com recommends buying V-Guard Industries, India Cements, BHEL, Federal Bank and Gujarat State Fertilizers & Chemicals.
Prakash Diwan of prakashdiwan.in is of the view that UltraTech Cement is the favourite pick in the large cap cement space and Prism Cement in the small cap space.
Sameet Chavan of Angel Broking advises buying Britannia Industries with a target of Rs 3030.
Ashwani Gujral of ashwanigujral.com is of the view that one can buy Prism Cement and sell JSW Energy and Mahindra & Mahindra Financial Services.
Ashwani Gujral of ashwanigujral.com suggests selling Union Bank of India, Prism Cement and Jubilant Life Sciences and advises buying Chambal Fertilisers and Balkrishna Industries.