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
Dreamfolks Services has witnessed a breakout of the triangle formation after a long consolidation. It has also successfully come out of the listing date high of Rs 550 with huge volume. It is trading above all important moving averages.
Minda Corporation has broken out from the downward sloping trendline on the weekly chart. It has been taking support at 200-day EMA. Intermediate trend of stock remains positive as it is trading above its 50, 100 and 200-day exponential moving averages.
After breaking out from the downward sloping trendline on the daily chart, Religare Enterprises is consolidating during last few days, indicating relative strength in the stock. Short and medium term trend remains positive as stock price is trading above all important moving averages.
Sundram Fasteners has created a strong base at Rs 780 level and managed to close above its all-important moving averages. On the upside, Rs 928 is an immediate hurdle then Rs 990 is the next target level.
One should always avoid investing in bad quality businesses because as is said a rising tide lifts all the boats but the end outcome is always bad in investing if one ignores the quality aspect, Shailendra Kumar of Narnolia advised.
Neeraj Chadawar of Axis Securities believes that market volatility is likely to provide good opportunities for Midcaps and Small caps.
Analysts feel investors will still focus on quality stocks only in 2020
We still advise traders not to have a contrarian approach on the market and should rather capitalize on such declines.
On the higher side, 11500 followed by 11600 would be the immediate levels to watch out for and on the downside, 11370 and 11300 should be seen as important supports in the forthcoming week.
Anticipating the future growth potential of the auto component industry and the positioning of the company as a multi-product and multi-location company, we feel that it has high growth potential.
The company achieved the reported PAT of Rs. 106 cr, a growth of 17.8 percent year-on-year with a net margin of 10.9 percent.
Sundram Fasteners expanding its capacity and making concentrated efforts to improve the product mix with focus on high-value products and increased contribution of exports.
Invest in quality companies with a healthy growth outlook and reasonable valuations.
We maintain buy with target price of Rs 760 per share based on 33x FY19E EPS of 23 per share.
Export-oriented companies in IT, pharma & other sectors are seeing more investor interests; due to positive factors like favorable rupee, buy backs & reasonable valuations.
Sundaram Fasteners is significantly adding capacity and has incurred Rs 200–300 crore Capex in FY18. The company has high ROE of 25.40 percent, says a report by Anand Rathi.
Siddharth Sedani of Anand Rathi says strong demand for capital and consumption goods is likely to continue
The stock can be bought at current level and on dips towards Rs 635 with a stop loss below Rs 615 and a target of Rs 720 levels, says Ashish Chaturmohta of Sanctum Wealth Management.
Ashish Chaturmohta of Sanctum Wealth Management said as long as Nifty trades below 10,640 levels, we expect the market to retest 10,550 levels which is an important support level for the market.
The company is significantly adding capacity and has incurred Rs 200 – 300 crore capex in FY18.
Ashwani Gujral of ashwanigujral.com is of the view that one can sell Jindal Steel & Power and BPCL and can buy Dewan Housing Finance Corporation.
Prakash Gaba of prakashgaba.com is of the view that one can buy Greaves Cotton and Sundram Fasteners.
Ashwani Gujral of ashwanigujral.com recommends buying Indiabulls Housing Finance, Motilal Oswal, Biocon, Titan Company an Motherson Sumi Systems.
Mitessh Thakkar of mitesshthakkar.com has a buy on Axis Bank with a stop loss of Rs 540 and target of Rs 565 and a buy on Havells India with a stop loss of Rs 548 and target of Rs 575.
Reliance Industries and Tata Steel hit new 52-week high while Bharti Airtel zoomed over 6 percent. Avenue Supermarts, Bharat Financial Inclusion, Dabur India, Havells India and JSPL were the other stocks which hit 52-week high in the Nifty.