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 continuation of the northward journey is possible only if the market posts a strong close above the 20-day EMA. Below are some short-term trading ideas to consider.
The market may see further consolidation with a negative bias if it breaks Monday’s low in the upcoming sessions. Below are some short-term trading ideas to consider.
With this strong bounce back, the overall trend remains healthy, despite the potential for continued consolidation. Below are some short-term trading ideas to consider.
JBM Auto formed a robust bullish candlestick pattern on the daily charts with significantly higher volumes, after several weeks of consolidation. The stock traded above all key moving averages.
Indicators have lost the momentum and moving downwards for the index on the daily chart and therefore it would be advisable to take aggressive longs only above the crucial resistance of 22,000-22,100 in the Nifty.
Vinay Rajani of HDFC Securities believes that positional trend of the Indian markets is bullish and dips should be bought in to.
Elecon Engineering is looking lucrative on technical fronts. Technically, it is bouncing back from a 38.2 percent retracement of the previous rally. It has witnessed a breakout of the triangle formation with strong volume, which suggests much more potential upside in this counter.
Sonata Software added nearly 3 percent gains to end at record closing high of Rs 859, on top of 11 percent rally in previous session, forming bullish candle on the daily timeframe with long upper shadow. The volumes remained robust for last both trading sessions.
Multiple bullish setups have occurred on Cigniti Technologies, including a breakout of an ascending triangle formation and a breakout of a flag formation with strong volume. On the weekly chart, it has witnessed a breakout of an Inverse Head and Shoulders formation.
Sonata Software after couple of days break rebounded sharply by more than 5 percent and formed long bullish candle on the daily charts with healthy volumes. The stock traded above all key moving averages, indicating positive mood among participants. Overall the stock has been in a momentum since the start of this calendar year.
Linde India's correction post April 2022 was structured, with no signs of a Lower Low, Lower High formation. The stock recently broke out of an Inverse Head and Shoulder pattern, signaling a potential reversal and continuation of the prior uptrend.
JBM Auto was also in action, climbing 5 percent to Rs 581, the highest closing level since April 22, 2022 and formed long bullish candle on the daily charts, with making higher high higher low formation. This stock also traded above all key moving averages, which is a positive sign.
Gravita India is in an awesome uptrend with a breakout of long consolidation and strong volume. The overall structure of the counter is very lucrative, as it is trading above all important moving averages. On the higher time frame, there is a breakout of a Bullish Flag formation, which suggests much more potential upside in this counter.
Goldman Sachs has a 'buy' on Infosys, Mindtree, TCS, Tech Mahindra & Mphasis. It has a 'sell' on Wipro and a 'neutral' on HCL Tech and L&T Infotech.
The Nifty IT index jumped 27 percent year-to-date and 77 percent from March 23's low point, while Pharma index was up 46 percent and 82 percent in same periods.
HDFC Securities maintained positive outlook on IT sector despite the sector recently re-rating to +2-standard deviations (SD) valuations.
Various measure taken by the government and ‘unlocking ‘ of the economic activity has made brokerages confident of an economic recovery and they have been upgrading stocks.
Nifty has reached close to the resistance of 78.6 percent retracement of the entire downswing seen from January 2020 top to March 2020 bottom
Infosys posted an 11.5 percent YoY growth in net profit at Rs 4,233 crore while Wipro posted a flat 0.11 percent YoY growth in net profit at Rs 2,390.40 crore.
The long term economic backdrop for the Indian economy looks good and we can expect the coming quarters having stability in the capital markets.
Thunuguntla said stocks in non-banking sectors have been languishing that reflects the impact of a slow economy
The Nifty index witnessed lower rolls from January to February series and it has seen addition of around 20 percent in the last six-seven trading sessions of this series
Prabhudas Lilladher says that the current volatility should be used as an opportunity accumulate fundamentally strong stocks for long term.
IT, Consumer and Capital Goods are likely to report solid earnings growth while automobiles, pharmaceuticals, and cement will continue to witness margin pressures leading to subdued earnings
The stock looks good on the daily and weekly chart so we are recommending a buy for medium term, says Sumit Bilgaiyan of Equity99.