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
Here's what Vikas Jain of Reliance Securities, recommends investors should do with these stocks when the market resumes trading today.
For upcoming sessions, markets are expected to trade with a positive bias, and on higher side, now any decisive move beyond 18,050 levels could add further buying momentum into Nifty50 index, says Shitij Gandhi of SMC Global.
Reacting on the above news, stock of many auto and auto-components makers rallied. The Nifty Auto index gained 0.86 percent as Tube Investments, Ashok Leyland, Tata Motors, Bharat Forge, Balkrishna Industries and Bajaj Auto gained 1-3.6 percent.
Going ahead, 15,660 (June 1 high) will act as a key resistance level. If prices break above it, we may see the Nifty move higher towards 15,725.
Brokerages and market experts have been positive about the auto space of late as the sector is among the key beneficiaries of the economic recovery and low-interest rates.
Brokerage firm ICICI Direct pointed out that a healthy festive period and elements of pent-up demand, channel restocking led the auto industry to remain firmly on the recovery path in Q3FY21.
Global brokerage firm CLSA, as per CNBC-TV18, expects the passenger vehicle (PV) segment to outperform in FY22. It has increased FY21-23 PV forecasts by 7-9 percent and for two-wheelers (2Ws) by 1-3 percent.
A significant pick-up in demand was seen for commercial vehicles (CV) while passenger vehicles (PV), two-wheelers (2W) and tractors also did well.
The extrapolated moves may even take Nifty to the next level of 13,769 which is 127.2 percent retracement of earlier fall from 12,430 to 7,511.
In muted earnings expectations for Q1FY21, beats were much higher than misses and that was one of major reasons and confidence booster for equity market not only in India but globally.
The market's valuations have turned higher than long-period average and investors should be cautious and selective in picking stocks, say experts .
Buying Motherson Sumi Systems above Rs 84 with a stop loss of Rs 72 for higher targets of Rs 106/110 is recommended.
Sudarshan Sukhani of s2analytics.com suggests selling Tata Motors with stop loss at Rs 153 and target of Rs 142 and Bosch with stop loss at Rs 14300 and target of Rs 13700.
Morgan Stanley has maintained overweight rating, but cut price target Rs 149 (from Rs 157 earlier), saying Motherson should see strong earnings growth driven by BS-VI transition
Mitesh Thakkar of miteshthakkar.com recommends buying Biocon with a stop loss of Rs 300 for target of Rs 330 and L&T Finance Holdings with a stop loss of Rs 127 for target of Rs 140.
Sudarshan Sukhani of s2analytics.com suggests buying Arvind with stop loss at Rs 42 and target of Rs 46 and HDFC Bank with stop loss at Rs 1200 and target of Rs 1265.
Rusmik Oza of Kotak said high expectations from the Budget could lead to a good start for Indian equities in 2020.
With the demand environment showing signs of stability and inventory under control, the BS-VI transition is likely to be less problematic (unlike BS4), according to the brokerage.
Sudarshan Sukhani of s2analytics.com advises buying Asian Paint with stop loss at Rs 1,760 and target of Rs 1,820.
Sudarshan Sukhani of s2analytics.com recommends buying L&T Finance Holdings with stop loss at Rs 115 and target of Rs 124 and Tech Mahindra with stop loss at Rs 764 and target of Rs 795.
Sudarshan Sukhani of s2analytics.com recommends selling Tata Motors with stop loss at Rs 164 and target of Rs 157 and Motherson Sumi Systems with stop loss at Rs 134 and target of Rs 122.
The current positive momentum can extend further, which could take the Nifty towards 12,300-12,350 levels
Sudarshan Sukhani of s2analytics.com recommends buying GAIL India with stop loss at Rs 120 and target of Rs 133 and Dr Reddy's Labs with stop loss at Rs 2900 and target of Rs 3050.
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.
Kotak sees risks to Indian component suppliers' earnings (Motherson, BHFC, Balkrishna and Varroc Engineering) as they are linked to global auto OEM demand.