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 broader markets also traded in line with benchmark indices as the BSE Midcap index gained 35 percent and Smallcap index rose 40 percent.
Most experts favour quality stocks, saying once the pandemic is brought under control, these will be first to gain.
Though the BSE realty index has fallen 47% in three months, Jefferies says only the strong will survive and make gains.
Given the sharp fall in stock prices across sectors, most experts advised accumulating quality and fundamentally strong scrips with a long term perspective.
The theme of this month has been the mid and small-caps, which outperformed benchmarks with a huge margin.
Mitesh Thakkar of miteshthakkar.com recommends buying Bharti Airtel with a stop loss of Rs 461 for target of Rs 485 and GAIL India with a stop loss of Rs 125 for target of Rs 137.
Rusmik Oza said a 5-6 percent correction from the peak levels could be a healthy one for the long-term market sentiment.
VK Vijaykumar of Geojit Financial Service feels the proposed AIF is better than the earlier one since this also includes projects referred to NCLT.
Clearly it’s a sell on rallies market, as both technical parameters and derivative data are pointing towards limited upside in prices moving forward.
Atish Matlawala of SSJ Finance & Securities said that rate cut will benefit banks as they will be able to bring down the cost of funds and pass on the benefit to the borrowers
There has never been dearth of quality and alpha-generating stocks in the market irrespective of cycles. Hence, investors may still invest in quality stocks, said an expert
Any temporary cool-off towards 11,400 should be used as an incremental buying opportunity, paving the way for the next leg of upmove, says Dharmesh Shah of ICICI Direct.com
Mitessh Thakkar of mitesshthakkar.com is of the view that one may buy M&M with a stoploss of Rs 766 and target of Rs 799.
If the Nifty stays below the key support zone of 11,379–11,359, then experts see this profit-booking getting extended towards 11,300-11,235 levels
Experts said investors will be better off betting on stocks that are showing growth momentum and those that will benefit from the spending push by the government ahead of elections.
"The breakout was also accompanied with smart volumes further accentuating our bullish stance on the stock. We have a target of Rs 606 per share," says Hadrien Mendonca of IIFL.
Going forward, it is not going to be a cakewalk for the bulls as there are multiple hurdles for the Nifty.
The FSI in island city has been raised to 3, while that in the suburbs is capped at 2.5. Residential hotels, regardless of the size, can also avail an FSI up to 5.
Analysts at Deutsche Bank and Spark Capital believe that the worst could be behind for the sector
"We believe valuation of (P/BV of 1.96x) is decent and expect the price of Rs 680 plus by March 2019 considering the fact that we expect its earnings to grow by 15 percent in FY19," says Akash Jain, Vice-president, Equity Research at Ajcon Global Services.
The small and midcaps are now around 20 and 14 percent respectively below the record peaks, Nifty’s loss is only around 9.5 percent.
Ashwani Gujral of ashwanigujral.com suggests buying Kotak Mahindra Bank, Axis Bank, PNB Housing, Escorts, SREI Infra and Bajaj Auto.
Ashwani Gujral of ashwanigujral.com recommends buying Asian Paints, Britannia Industries and Sobha.
Ashwani Gujral of ashwanigujral.com is of the view that one can buy Sobha and Coffee Day and can sell Chennai Petroleum Corporation.
Idea, Sobha and Biocon, among others, are being tracked by analysts on Monday.