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
Consolidation is expected to continue in the upcoming sessions until the frontline indices trade above their short-term moving averages. Below are some short-term trading ideas to consider.
Given supportive technical indicators and the easing of most concerns, the index is likely to gain momentum despite intermittent consolidation. Below are some short-term trading ideas to consider.
Bajaj Auto recorded healthy performance on all days in the past week, hitting a new closing high of Rs 8,879, and formed bullish candlestick pattern on the daily charts with healthy volumes.
BPCL was also in action, rising 2.35 percent to Rs 360 and formed bullish candle with long lower shadow on the daily charts, indicating support-based buying in the stock. The trading volumes remained strong in last three days, with the stock coming back above all key moving averages.
Traders should keep focusing on stock-specific moves and should ideally remain light on positions till the time key indices consolidate in the recent congestion zone, Sameet Chavan of Angel One advised
On the Options front, we have maximum Call Open interest at 19,000 strike, which is Out-Of-Money (OTM) indicating the traders are betting big on 19,000 mark again. Whereas on the Put side, the maximum open interest was at 18,000 strike, suggesting crucial support area for the Nifty in January series
Yes Bank remained in focus, rising 7 percent to Rs 21.1, the highest closing level since July 13, 2020. It has seen another large bullish candle on the daily charts with robust volumes, especially after decisively breaking out of long horizontal resistance trend line adjoining August 2, December 2 and December 6 this year.
IRB Infrastructure Developers has broken out on the daily line chart with higher volumes to close at highest level since November 9. The stock price has been forming higher top higher bottom candle stick pattern on the daily chart.
According to experts, 18,450-18,500 is likely to be a crucial area for further upside. If the said zone sustains, then new highs are possible in the coming days, with support at 18,300, followed by 18,000 levels
KPIT Technologies shares rallied more than 6 percent to Rs 727 and formed long bullish candle on the daily charts with above average volumes. There was a breakout of long downward sloping resistance trend line adjoining January 10 and November 17 this year.
Primary trend of Minda Corporation turned positive as stock price closed above its 200 days EMA. Momentum Oscillators like RSI (11) and MFI (10) have witnessed trendline breakout, indicating higher possibility of price to gain momentum from hereon. One can buy the stock in the range of Rs 205-200.
MCX India has witnessed a breakout of a bullish double bottom pattern formation on the longer time frame while on the daily chart; it has given a breakout of a bullish Inverse Head & Shoulder pattern with huge volume.
There are multiple pieces of evidence that suggest that Nifty is likely to find strong support around 11,200 levels and unless it closes below this level, the uptrend will remain intact.
On the upside, the Nifty needs to sustain 10,800 for the uptrend to continue towards 11,100 and then possibly 11,350.
With most sectors in a slump, the monsoon will also have an impact on employment generation, auto sales, and demand of cement and steel.
Next gap resistance for Nifty is placed at 10,334. Far resistance is seen around 10,550 level which is the 61.8 percent retracement of the entire fall seen from 12,430 to 7,511.
FM Nirmala Sitharaman on May 15 announced 11 measures to boost the sector, ranging from the amendment of Essential Commodities Act to a Rs 1 lakh crore fund to boost agriculture infrastructure.
The weekly strength indicator RSI is moving upwards and is quoting above its reference line, indicating a positive bias.
The primary trend of Nifty is bullish as the index is trading above its 50, 100 and 200 DMAs. Higher tops and higher bottoms are well intact. So, technical indicators are suggesting that the positional trend of the market is bullish.
The Midcap and Smallcap stocks should be on the radar for higher trading returns in the short term.
Delay in monsoon is already affecting the sowing of key kharif crops, but experts are of the view that the Budget should have significant dole outs for the agricultural sector
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Harendra Kumar of Elara Capital said given the overall robustness in earnings recovery, 2019 could well be a year of midcaps and smallcaps.
With challenges on the macro front and increasing political headwinds faced by the BJP heading into the 2019 general elections, Prabhudas Lilladher believes traders are likely to remain cautious