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
RSI plotted on the weekly timeframe remains above the 50-mark and is drifting higher towards the overbought level, indicating that the bulls are attempting to take control of the trend
The market can expect more earnings upgrades if the strong corporate earnings reported in the March quarter are followed by quick winding of restrictions in various states and faster revival of the economy.
Support for Nifty is placed at 15,050 while resistance is near 15,430 (all-time high).
Price-wise/time-wise correction within Nifty tends to provide buying opportunities with sector churning theme dominating headline.
Nifty closed at a 3-week low at 11,671 on October 29 and the breakdown of the 50-day average at 11,540 would accelerate the second round of profit-booking, pushing the index lower to 11,200.
Nifty is nicely poised above its 20, 50, 100-day exponential moving averages (EMA) on a daily interval which is positive for the Indian bourses.
The Bank Nifty index has been a laggard in the current upmove and may outperform the broader markets with key potential targets of 23,800-24,100 levels over the next few weeks.
Pattern would be considered void on weekly close above 10,340, until then expect weakness to prevail with heightened volatility.
The momentum oscillator MACD has provided fresh buy crossover on the weekly scale and RSI has started making a higher top and higher bottom formation which hints that we can expect some moderate upmove in the coming week as well.
On the technical front, 8,800 levels would act as a major support for Nifty below which we could see further long liquidation which could drag the index towards 8,600 levels in the coming sessions.
As far as levels are concerned, 8,000-8,100 levels are key resistance levels for the Nifty which should cap any sharp upside.
The government consistently focuses on development of smart cities across country, especially since they came in to power in 2014.
Ashwani Gujral of ashwanigujral.com recommends buying PVR with a stop loss of Rs 1960, target of Rs 2010 and Kotak Mahindra Bank with a stop loss of Rs 1630, target of Rs 1665.
The apt strategy to trade in such a market would be to play the range i.e. buy as close as possible to support and vice versa.
Sudarshan Sukhani of s2analytics.com recommends buying Dabur India with stop loss at Rs 459 and target of Rs 474 and MRF with stop loss at Rs 65500 and target of Rs 68750.
Ashwani Gujral of ashwanigujral.com suggests buying Bharti Airtel with a stop loss of Rs 445 and target of Rs 470.
Sudarshan Sukhani of s2analytics.com recommends buying HCL Tech with stop loss at Rs 542 and target of Rs 585 and ICICI Prudential Life Insurance with stop loss at Rs 487 and target of Rs 515.
Prakash Gaba of prakashgaba.com advises buying DLF with a stop loss of Rs 220 and target of Rs 240.
'Better farm income coupled with the measures taken by the government and RBI will help improve demand conditions'
After the mega booster, most brokerages raised their Sensex and Nifty target by 15-20 percent from September 19's closing levels and also raised earnings estimates for sectors such as banking & financials, FMCG, auto
We need to be cautious while adding long positions at current levels. Put/Call ratio is at 1.48 and India VIX at 17% which indicates high risk in creating long positions on Indices, said Shrikant S. Chouhan, Senior Vice-President, Equity Technical Research at Kotak Securities.
We expect order inflows to show strong growth due to railways, metro projects and automation orders from steel industry.
The Midcap and Smallcap stocks should be on the radar for higher trading returns in the short term.
On the downside, 10,950 followed by 10,874 would now be seen as immediate support level for the Nifty
Thunuguntla said stocks in non-banking sectors have been languishing that reflects the impact of a slow economy