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 may be seen for a few more sessions before entering a new leg of the upmove. Below are some short-term trading ideas to consider.
The market may extend its upward move amid consolidation in the upcoming session, but the "sell on rally" strategy remains valid due to the overall bearish sentiment. Below are some trading ideas for the near term.
Sun TV Network has formed long bullish candlestick pattern on the daily timeframe, with trading above all key moving averages.
The Nifty is expected that the Nifty will likely continue to trade sideways, as long as it sustains within the range of 19,200 to 19,500, implying a range bound trades unless there is a directional breakout
The benchmark Nifty is likely to march towards 19,300-19,500 levels in coming days, as long as it holds the 19,000 mark, which is an immediate support, then 18,800 levels, experts said
Indiabulls Housing Finance has given a nice consolidation breakout and jumped over 6 percent to Rs 123.4, the highest closing level since January 25 this year, with healthy volumes. The stock has formed long bullish candlestick pattern on the daily scale and closed above 200-day EMA.
On the higher end, a resistance level is noted at 19,000 on the Nifty, where Call writers are waiting to defend the price level.
Indian Energy Exchange has given a breakout from a Pole and Flag pattern with a sharp surge in volumes. The momentum indicators are trading in the strong buying zone which confirms the strength of the stock.
Indian Hotels seems to be taking support from a strong upwards sloping support trendline on the weekly timeframe from the last 22 months and the stock has broken out of a downwards sloping parallel channel pattern on the daily timeframe which can be used as a confluence towards the bullish view.
Indiabulls Housing Finance has made a good rebound after four-day correction, rising 5.7 percent to Rs 117, and formed Bullish Engulfing candlestick pattern on the daily charts with above average volumes, which is a positive sign. It has given a nice breakout of long downward sloping resistance trendline adjoining December 30, 2022 and January 20, 2023.
The market reacted negatively to the policy, may be due to increasing possibility for further rate hikes in next policy meeting and lowering the growth forecast
There could be some kind of weakness or profit-booking in the coming sessions, followed by high possibility of consolidation and volatility, before showing any upward direction towards 18,000 mark, experts said
Metropolis Healthcare has given a declining trendline breakout after forming a base near Rs 1,500 levels. Huge rising volumes on price rise signifies increased participation in the rally. The daily strength indicator RSI has turned bullish indicating rising strength.
On daily and weekly charts, Skipper has formed double bottom formation. Post short term correction, the stock took the support near Rs 55 and bounced back sharply.
Traders should trade with a positive bias and look to buy Ipca Labs in the range of Rs 1,060-1,050 for a potential target of Rs 1,130 in the short term. One should place a stop-loss below Rs 1,020 on the positions.
"What a fantastic setup we are having in Ashok Leyland -- precise Bullish Deep Crab pattern on daily chart with Classic Doji near potential reversal zone of Rs 95-100," says Jigar S Patel of Anand Rathi Shares & Stock Brokers.
Here's what Rajesh Palviya of Axis Securities, recommends investors should do with these stocks when the market resumes trading today.
Here's what Mehul Kothari of Anand Rathi Shares & Stock Brokers, recommends investors should do with these stocks when the market resumes trading today.
Here's what Mazhar Mohammad, of chartviewindia.in, recommends investors holding these stocks when the market resumes trading today.
Majority of the oscillators are in overbought zone and sideways movement to cool off cannot be ruled out.
Last week’s fall has led to Nifty reversing its uptrend as it closed below the trend reversal levels of 11,832 and the index formed a big red candle on the weekly charts.
Mitessh Thakkar of mitesshthakkar.com advised buying Apollo Hospitals with a stoploss of Rs 1,440 and a target of Rs 1,500.
Prakash Gaba of prakashgaba.com recommends buying Jubilant Foodworks with target at Rs 1620 and stop loss at Rs 1582 and SRF with target at Rs 3500 and stop loss at Rs 3380.
Prakash Gaba of prakashgaba.com recommends buying Indiabuls Housing Finance with target at Rs 320 and stop loss at Rs 275 and NMDC with target at Rs 120 and stop loss at Rs 112.
Mitesh Thakkar of miteshthakkar.com recommends buying HDFC Bank with a stop loss of Rs 1232 for target of Rs 1265 and JSW Steel with a stop loss of Rs 254 for target of Rs 269.