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
Market consolidation is expected to continue with the focus now shifting to the outcome of the US Federal Reserve meeting. Below are some short-term trading ideas to consider.
Given the strong optimism, the bulls are likely to take the Nifty 50 to the 22,000-22,200 zone in near term with an immediate support at 21,800-21,700 levels, followed by crucial support at 21,500 mark, experts said.
Traders are advised to hold longs with trailing stoploss of 19,200 in Nifty on the closing basis.
The directional bias remains strongly bullish till the time 18.600 on the Nifty50 is not violated. Before this, 19,000 followed by 18,800 are to be seen as key supports.
Suprajit Engineering has formed robust bullish candlestick pattern on the daily timeframe, making higher highs-higher lows formation for three days in a row, with healthy volumes. The stock settled at Rs 403, the highest closing level since February 4 last year, up over 5 percent.
Suprajit Engineering now for the first time has got into formation of the Higher high & Higher Low post the Rally from January 2022. This illustrates the positive undertone of the prices.
Suprajit Engineering has been bucking the trend from the beginning of February month. It has been moving steadily after forming a strong base around Rs 320.
Siemens retreated sharply after recent consolidation and record high, falling nearly 4 percent to Rs 3,132. The stock has seen formation of big bearish candlestick pattern on the daily charts, after Doji pattern formation in previous session, but still maintained short term and long term key moving averages.
The banking index has been showing outperformance and is continuing its uptrend after some consolidation. Among private sector banks, Axis Bank is showing strength and has given a breakout above its previous swing high resistance.
Trend of Action Construction Equipment is positive as it is trading above its important moving averages. Plus DI is trading above Minus DI while ADX line is placed above 25, indicating stock is likely to gather momentum in the coming days.
Oscillators on the higher timeframes indicated the sentiments are positive, but the lower timeframes (one hour and below) indicated negative sentiments which can be a sign of overbought and hence some setback can't be ruled out especially after 4 percent run up last week and 10 percent rally from June lows, experts said
Nandish Shah of HDFC Securities believes that the short-term trend will remain bullish till the Nifty is trading above 17,200 levels
Correction is expected to continue, but this is the right time to accumulate quality stocks, most of experts feel
Ashwani Gujral of ashwanigujral.com is of the view that one can sell Adani Ports and Sun TV Network and can buy Suprajit Engineering, Avenue Supermarts, Bajaj Finance and Jubilant Foodworks.
Ashwani Gujral of ashwanigujral.com is of the view that one may buy Amara Raja Batteries, Gail India and Suprajit Engineering.
The benchmark index will remain under pressure for some more time but there is plenty of stock specific action which could give returns much bigger than Nifty50 or S&P BSE Sensex.
Markets are driven by massive liquidity from domestic investors as well as the optimism of a double digit earnings growth which could well start reflecting in the numbers of India Inc. in the next two quarters.
As traders turn cautious over the geopolitical issues coupled with the domestic headlines, the market is expected to ride on the volatile regime with a negative outlook in the short-term unless it witnesses favourable events.
Ashwani Gujral of ashwanigujral.com suggests buying Eicher Motors, Suprajit Engineering, Godrej Properties and DLF.
Ashwani Gujral of ashwanigujral.com is of the view that one can buy NBCC, Suprajit Engineering and L&T Finance Holdings.
The expectations from June quarter earnings are fairly muted. However, few surprises cannot be ruled out.
Rising liquidity in domestic MFs is one of the biggest factors in driving rally on D-Street which is trading at record highs.
Ashwani Gujral of ashwanigujral.com recommends buying Idea Cellular, Shoppers Stop, Suprajit Engineering and Engineers India.
According to Sanjiv Bhasin of IIFL, one can buy United Spirits at around Rs 2250-2300 and sees the stock price double in two years.
Sanjiv Bhasin of IIFL is of the view that Suprajit Engineering is the top pick with target of Rs 300.