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 is expected to consolidate before entering a fresh leg of upmove. Below are some short-term trading ideas to consider.
Market sentiment may improve further with the fall in India VIX and amid hopes of a 25 bps cut in the repo rate in the policy meeting on June 6. Below are some short-term trading ideas to consider.
The decisive close above 24,400 is likely to be crucial for a further uptrend, while the bears may turn strong if the Nifty 50 breaks 24,200. Here are some trading ideas for the near term.
Looking forward, the immediate resistance for Nifty is identified at the 21,500 levels, representing the 78.6 percent Fibonacci extension level.
Nifty is trading below its significant moving averages, indicating a bearish trend.
Vinay Rajani of HDFC Securities expects market to remain choppy as far as benchmark indices are concerned. However, stock specific bullish actions may continue to be there.
For a further up-move, the index needs to close above a bearish gap created on September 21 in the 19,850-19,900 zone for a move towards the 20,000 mark, whereas on the lower side, the immediate support will be at 19,600, followed by 19,500, experts said
Traders are strictly advised to hedge their long positions since any escalation in the ongoing geopolitical crisis might reverse the markets without any intimation.
Considering the momentum in key sectors, if the Nifty50 decisively surpasses 19,500, then 19,650 is expected to be the crucial area for sharp up-move, while the critical support remains at 19,300-19,250, experts said
A conclusive break above the 19,700 levels on Nifty, especially on a closing basis, would potentially open the path for further upward movement, with an eye towards the 20,000 mark.
Vinay Rajani of HDFC Securities believes that positional trend of the Indian markets is bullish and dips should be bought in to.