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
By providing attractive valuations, the COVID-19 pandemic seems to have offered an opportunity to investors who have been eyeing the mid and small-cap space to place their bets at significantly low risk, say experts.
The year 2020 is largely about survival, both health-wise and finance-wise. It is also an opportune time to tweak and tighten the portfolio for the next bull run, said Yes Securities
In October itself, the benchmark indices gained around 4 percent, taking total gains to over 55 percent from March lows. The Nifty Midcap index, too, gained 55 percent while the Nifty Smallcap surged 75 percent.
Within the recovery theme, sectors like low-ticket consumer durables, cement, hotels and multiplexes are expected to do well.
The BSE Midcap index is a shade away from turning positive for the year 2020 while the Smallcap index is trading in the green.
Experts point out select mid and smallcaps look good for medium to long term horizon. They name about 20 favourite stocks
The road ahead for the market is bumpy and a lot will depend on the course of coronavirus pandemic. Moreover, global cues and measures of governments and central banks will remain important factors for the market.
Company continues to focus on debt reduction and free cash flow generation, and expects to be a net-cash company in the next 18 months, Emkay said
For this week, Nifty has strong support at 11,565-11,500 and resistance at 11,700-11,760
During Q3FY19, its net profit increased by 49% to Rs 52.1 crore from Rs.35.02 crore on YoY basis on 18% higher sales of Rs.2058.37 crore.
For next week, Nifty has strong support at 10,800-10,740 levels and resistance at 10,940-11,035 levels
Sumit Bilgaiyan of Equity99 said the Nifty has strong support at 10,825-10,745 levels and resistance at 10,945-11,035 levels
If you do not understand the company or market sentiments, do not buy individual companies, but Invest in a mutual fund.
Rajesh Agarwal of AUM Capital suggests buying Century Plyboards with a stoploss of Rs 198 and target of Rs 217.
Mitessh Thakkar of mitesshthakkar.com suggests buying United Spirits around Rs 490 with stop loss of Rs 480 and target of Rs 513 and Radico Khaitan with a stop loss of Rs 320 and target of Rs 348.
Ashwani Gujral of ashwanigujral.com suggests buying Bajaj Finserv with a stop loss of Rs 6900, target of Rs 7150, ACC with a stop loss of Rs 1500, target of Rs 1585 and Radico Khaitan with a stop loss of Rs 430, target of Rs 456.
Hemang Jani, Head - Advisory, Sharekhan, said any major declines should be used as an opportunity to get into quality names in the consumption and financials space
"I would give rating of 9 out of 10. I would be happier if GST brings petrol and diesel under the GST ambit," Sumit Bilgaiyan of Equity99
Hadrien Mendonca of IIFL recommends buying Bajaj Finance with target at Rs 2,250 and stop loss at Rs 1,975 and Colgate Palmolive with target at Rs 1,276 and stop loss at Rs 1,138.
The market's upward trajectory was in spite of volatility in stocks traded abroad and crude hitting multi-year highs, primarily because investors continued to be hopeful that earnings would keep getting better.
"Margins should expand due to improving product mix and benign raw material prices. We are recommending a buy with short target price of Rs 480 and long term price target of Rs 690," says Sumit Bilgaiyan, Founder of Equity99.
Next week's trend will be decided on the basis of quarterly earnings and trends in global markets.
"Till Nifty sustains above 9900 levels, bounce back from current level cannot be ruled out," says Rajesh Agarwal of AUM Capital.
The reaction to the US-China trade war on equity markets was nothing short of a bloodbath. Asian markets plunged while back home Sensex and Nifty recorded a cut of over 1 percent. The rout witnessed by the Indian market on Friday has eroded Rs 1.57 crore of investor wealth.
Ashwani Gujral of ashwanigujral.com is of the view that one may buy Tata Steel, Mindtree and Radico Khaitan.