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 last week's low point of 19,250 is expected to be crucial this week as well. A breach of this level may pull down the index up to the psychological 19,000 mark, whereas on the higher side, 19,400-19,500 can be critical hurdles, experts said
Traders should keep focusing on stock-specific moves and should ideally remain light on positions till the time key indices consolidate in the recent congestion zone, Sameet Chavan of Angel One advised
With Friday's strong move, SBI Life stock prices managed to traverse the '20-day EMA' (exponential moving average), which is an indication of further strength in current week.
As long as the Nifty trades above 15,500, one should continue to trade with a positive bias and look for stock-specific buying opportunities during the week, says Ruchit Jain, of 5paisa.com
In last four months, Graphite India has been forming a good accumulation pattern, which is now about to get matured soon. If we meticulously observe the daily chart, we can see upward rallies on higher volumes and declines on much lower volumes.
The Nifty 50 lost 0.8 percent last week but stayed consistently above the crucial 17,000 mark as well as the 200-day moving average of about 17,030 in the past six straight sessions. The first half of this week will likely give a fair idea of the short-term direction
Investors should focus on the domestic economy-facing sectors like capital goods, infrastructure, real estate and banking. In the near term, they are betting on metals, IT and pharma
We are not at all convinced about trading aggressively on the long side at this moment, but there could be some odd thematic moves that can be focused on, said Sameet Chavan of Angel Broking.
"The key support levels for Nifty for the short term are 16,722 (gap support) and 16,376 (three-week low)," said Vidnyan Sawant of GEPL Capital.
Now, 16,800 would act as strong resistance for Nifty on the higher side while bias is likely to remain in favour of bulls in the upcoming sessions, said Shitij Gandhi of SMC Global
As far as supports for Nifty are concerned, the immediate levels are 15,700 – 15,670 and the base is at 15,450. As long as the market defends these important supports, the short-term trend remains bullish, said Sameet Chavan of Angel Broking
Strong corporate earnings and hopes that declining COVID-19 cases will prompt states to ease lockdowns have buoyed the market sentiment amid concerns of vaccine scarcity and downgrades of India’s growth outlook.
After a phase of strong earnings, lockdown-like restrictions have led to more downgrades than upgrades but analysts and brokerages remain bullish about many stocks, which have been upgraded to a ‘buy’ rating.
This is the time to hunt for favourite fundamental stocks which are missing in your long-term portfolio. Experts say this is the time to take advantage of the price corrections
Markets buoyed by US Fed’s view that it would remain focused on getting people back to work as vaccines help the pandemic-hit economy recover.
At the lower end, support for the Nifty is seen at 14,750 on the daily chart. The higher-end break of 15,250 will open the gate for 15,400 in the coming weeks.
Sanjeev Hota of Sharekhan by BNP Paribas feels there could be further positive earnings surprise in store for Q4FY21.
We continue to believe that the AUM growth story remains intact with the benefit of MTM gains more than compensating for the stressed inflows.
Since FY17, the market's performance was mostly driven by a handful of stocks, as broader indices underperformed significantly.
Prabhudas Lilladher believes that current uncertainty is a passing phase and return to normalcy will result in several beaten down segments bouncing back strongly from FY22.
On the technical front, 12,750 and 29,500 would act as an immediate hurdle for Nifty and Bank Nifty, respectively.
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.
On the downside, supports are far, in the band of 11,380-11,400 which is the last week's close and the band of averages.
Neeraj Chadawar of Axis Securities believes that the equity will continue to trade on higher multiples for some more time.
Even management commentary gave the market a confident outlook to withstand businesses against the COVID spread and its impact.