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
Traders are advised to avoid making aggressive bets for a while and wait for the Nifty to reclaim 18,050. However, it's an excellent opportunity to start nibbling at quality propositions.
RBL Bank shares rallied 6 percent to Rs 167.55 and formed big bullish candle on the daily charts with above average volumes, making higher highs higher lows for second consecutive session. The stock has seen a nice and decisive breakout of horizontal resistance trend line in the gap up opening on Wednesday.
JSW Steel was also in action and was the biggest gainer in the Nifty50, rising 5.5 percent to Rs 680 on Thursday on top of 3 percent gains in previous two trading sessions. The stock has seen formation of strong bullish candle on the daily charts with healthy volumes.
IDFC First Bank was the third largest gainer in the F&O segment, climbing 5.5 percent to Rs 46.05, the highest closing level since February 11. The stocks has seen a Bullish Engulfing candlestick pattern formation on the daily charts with above average volumes as the big bullish candle engulfed all three previous red candles, which generally indicates a bullish bias.
Given the expiry week, there could be volatility with also focus on global cues. If the index fails to sustain Friday's low of 17,710 then we can see further selling pressure, experts said.
RSI plotted on daily and weekly time frame is below 50 mark, which tells that RBL Bank has lower momentum in it. We recommend the trader and investors to sell this stock until the level of Rs 115 is protected on the upside.
We believe history will repeat itself, wherein Exide Industries will rebound utilising prior consolidation and will move towards its 100-day SMA. This could lead the stock towards Rs 157 initially and Rs 163 subsequently.
Occurrence of a ‘Bullish Hammer’ on weekly scale near the confluence zone of a multi support area of its 200 week EMA reconfirm the strength of its ongoing channel support zone in Zensar Technologies. Trend strength indicator RSI too exhibits a positive crossover along with a likely trend break
Any sustainable upmove above Rs 400-410 levels will cause an upward breakout in Indraprastha Gas. Rising volumes at lower levels signifies increased participation near the support zone. The daily and weekly strength indicator RSI continues to remain bullish which signals rising strength at lower levels.
RBL Bank | The bank reportedly will continue to invest in branches and capacity-building, leading to elevated cost ratios and driving FY23-FY24 earnings estimate cuts, CLSA said.
Here's what Mazhar Mohammad of chartviewindia.in, recommends investors should do with these stocks when the market resumes trading today.
Sanjeev Hota of Sharekhan by BNP Paribas feels there could be further positive earnings surprise in store for Q4FY21.
The BSE Midcap index surpassed its record high level seen in 2018, while the Smallcap is still more than 1,000 points away from previous record high levels.
The Nifty is approximately 1.4 percent short of a lifetime high while the Bank nifty needs the appreciation of 21 percent approximately to reclaim the all-time high.
The benchmark indices and broader markets have rallied more than 55 percent from the lows of March 23, though they have been some correction in the last few sessions.
The crucial supports during any correction would be provided by 20-DMA placed at around 11,800 and 5- DMA standing around 11,730, says Shabbir Kayyumi of Narnolia Financial Advisors Ltd. .
Nifty needs to hold above 11,250-11,350 range which could again give an upper hand to bulls to drive the move towards 11,650-11,700 zone.
Monthly and weekly Heikin candlestick patterns are flat bottom with higher high formations suggests prices can still trade higher towards previous swing pivot standing around 11,350 mark.
While retaining reduce call with a target price of Rs 135, Yes Securities said it cut FY21/22 earnings estimates by 88/44 percent due to sharp adjustments to loan growth, fee growth and credit cost.
Ashwani Gujral of ashwanigujral.com recommends buying Chambal Fertilizers with a stop loss of Rs 175, target of Rs 190 and Muthoot Finance with a stop loss of Rs 768, target of Rs 790.
Rajat Bose of rajatkbose.com recommends buying Ashok Leyland with stop loss below Rs 80.75 for target of Rs 90 and Aditya Birla Capital with stop loss below Rs 103.30 for target of Rs 112 and Rs 114.
The brokerage has an underweight rating on the stock with a target price of Rs 240 per share, implying 28.4% potential downside from current levels.
Mitesh Thakkar of miteshthakkar.com recommends buying BPCL with a stop loss of Rs 533 for target of Rs 570 and NCC with a stop loss of Rs 59 for target of Rs 65.
Mitessh Thakkar of mitesshthakkar.com recommends selling Hero MotoCorp with a stoploss of Rs 2,620 and target of Rs 2,530-2,589.10 and advises buying Reliance Industries with a stoploss of Rs 1,458 and target of Rs 1,500-1,472.30.
Dinesh Thakkar of Angel Broking said though MF inflows this year have slowed down, he was very confident that MF inflows will pick up from here on as market sentiment improves