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
Given the cautious sentiment signaled by momentum indicators, the market may continue consolidating for a few more days. Below are some short-term trading ideas to consider.
The consolidation is expected to continue as long as the frontline indices trade below short-term moving averages. Below are some short-term trading ideas to consider.
The benchmark indices may sustain the negative trend, with focus on the outcome of the two-day Federal Reserve policy meeting, which is due on December 18. Below are some trading ideas for the near term.
Sobha ended at new closing high after break out of downward sloping resistance trendline, and formed long bullish candlestick pattern on the daily timeframe with above average volumes.
Sobha formed robust bullish candlestick pattern on monthly charts, with making higher highs, higher lows formation for third consecutive month. The stock traded well above all key moving averages.
For a further up-move, the index needs to close above a bearish gap created on September 21 in the 19,850-19,900 zone for a move towards the 20,000 mark, whereas on the lower side, the immediate support will be at 19,600, followed by 19,500, experts said
The real challenge for the Nifty50 is breaking above the 20-day moving average at 19,800, which is also an important level where many traders have placed their bets.
Zomato recouped all its previous day's losses and jumped 4.6 percent to Rs 105.4, forming bullish candlestick pattern with long upper shadow on the daily charts, indicating profit taking at higher levels.
Sobha formed bullish candlestick pattern with small upper shadow on the daily charts. The stock traded above all key moving averages, and the trading volume on last Friday was above average.
Sobha has seen a decisive breakout of falling resistance trendline adjoining highs of July 26 and September 5, with strong bullish candlestick pattern on the daily charts. The stock rallied nearly 11 percent to Rs 682 and formed significantly higher volumes.
The zone of 17,600 –17,800 would be a tough nut to crack since we have a gap area near 17,500–17,600. Traders are advised to book their longs in index near this zone
In March, Anupam Rasayan India and Olectra Greentech were amongst the top 10 gainers, whereas Sobha was the second biggest loser.
Sobha rallied 3 percent to Rs 652 and formed healthy bullish candle on the daily charts for yet another session with above average volumes. The stock has been making higher high higher lows formation for third straight session.
After short term correction, Talbros Automotive Components took support near 200 day SMA (Rs 413) and reversed sharply. Post reversal, in this week so far, it rallied over 15 percent and also formed a long bullish candle on weekly and daily charts.
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
Conflation of several factors such as improving sales, market share gains and rising real estate prices augurs well for listed real estate developers.
The Nifty 50 extended its gains over the past four weeks to 7.5 percent, which indicates a positive momentum. If the uptrend persists, a record high can’t be ruled out in the coming days, experts said.
Sameet Chavan of Angel One says Traders should trade with a positive bias as long as the index remains above 17,000–16,800
Experts feel overall the index has been rangebound and the surpassing 17,200-17,300 mark in coming days can be concluded as a completion of recent corrective phase.
HDFC twins and SBI are among the list of stocks being presented by three experts. They also explain why technical indicators are favouring these stocks.
Experts said trades could continue to be rangebound in the coming days and if the Nifty 50 closes decisively above 18,000-18,100, then it may rally towards record high levels.
If the Nifty breaks above the 20-Day SMA (18,050), it can be assumed that profit booking and the correction have come to an end. The index may resume its upmove towards 18,400, 18,600 and eventually towards a fresh life time high
Investors with a higher appetite for risk should only venture in this sector given that it is cyclical and the companies do carry some amount of leverage, said an expert
All-in-all, Yes Securities believes the market will run up ahead of, and in anticipation of an ensuing economic recovery.
Even management commentary gave the market a confident outlook to withstand businesses against the COVID spread and its impact.