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
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
China, being the largest exporter of metals, any trade war could lead to uncertainty and adverse outlook on the sector.
VIX staying below 35 level will be support for the market and any up move will cap the upside to keep the market range bound.
In the very near term, after the recent sharp rally, some consolidation or small retracement as mean reversion is highly probable.
The benchmark index is trading above 20 DMA which is footed at 8600 suggests one should opt for buy on dip strategy going forward.
As far as levels are concerned, 8,000-8,100 levels are key resistance levels for the Nifty which should cap any sharp upside.
With regard to the intermediate levels, 7,800 followed by 7,500 could be the next supports for Nifty
Mitesh Thakkar of miteshthakkar.com suggests selling Escorts with a stop loss of Rs 760 for target of Rs 725 and Mahindra & Mahindra with a stop loss of Rs 458 for target of Rs 435.
Sudarshan Sukhani of s2analytics.com recommends buying Castrol India with stop loss at Rs 147 and target of Rs 154 and Escorts with stop loss at Rs 830 and target of Rs 860.
Mitesh Thakkar of miteshthakkar.com suggests selling Bajaj Finserv with a stop loss of Rs 9450 for target of Rs 9240 and Container Corp with a stop loss of Rs 526 for target of Rs 495.
Mitesh Thakkar of miteshthakkar.com recommends selling Bajaj Auto with a stop loss of Rs 3092 and target of Rs 3000 and Berger Paints with a stop loss of Rs 578 and target of Rs 560.
Mid-term moving average 50 DMA placed around Rs 408 levels defines mid-term trend is very well augur with bulls as prices are sustained and trading above it.
The downside is more in the Bank Nifty, where during the last week it formed a bearish candlestick. The major support for Bank Nifty is around 30,200.
Mitesh Thakkar of miteshthakkar.com recommends buying Titan Company with a stop loss of Rs 1280 for target of Rs 1340 and Infosys with a stop loss of Rs 784 for target of Rs 820.
Mitesh Thakkar of miteshthakkar.com recommends buying Biocon with a stop loss of Rs 300 for target of Rs 330 and L&T Finance Holdings with a stop loss of Rs 127 for target of Rs 140.
Sudarshan Sukhani of s2analytics.com recommends selling Balkrishna Industries with stop loss at Rs 1089 and target of Rs 1050 and Tata Elxsi with stop loss at Rs 955 and target of Rs 925.
Mitesh Thakkar of miteshthakkar.com recommends buying Ashok Leyland with a stop loss of Rs 84 for target of Rs 92 and Dish TV with a stop loss below Rs 13 for target of Rs 14.5.
Sudarshan Sukhani of s2analytics.com recommends buying Bata India with stop loss at Rs 1660 and target of Rs 1750 and Wipro with stop loss at Rs 246 and target of Rs 259.
Maybank Kim Eng feels a more broad-based participation of stocks and sector rotation is a more likely trend in 2020.
Prakash Gaba of prakashgaba.com recommends buying Indiabuls Housing Finance with target at Rs 320 and stop loss at Rs 275 and NMDC with target at Rs 120 and stop loss at Rs 112.
Ashwani Gujral of ashwanigujral.com recommends buying Bata India with a stop loss of Rs 1670, target of Rs 1720 and Kotak Mahindra Bank with a stop loss of Rs 1630, target of Rs 1675.
We are seeing indications of short term up move in select PSU banks but we still recommend preferring private banks over the PSU pack for the long term investment.
Mitesh Thakkar of miteshthakkar.com recommends buying Axis Bank with a stop loss of Rs 744.9 and target of Rs 780 and Bank of India with a stop loss of Rs 72.5 and target of Rs 78.5.
A decisive close above 12,050 will take index in a new zone which can extend towards 12,200 levels.
Ashwani Gujral of ashwanigujral.com advices selling Tata Steel with a stop loss of Rs 390, target of Rs 375.