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
As the market seems to have the comfort of valuation now, it is time to lap up quality stocks, analysts point out.
Sanjeev Hota of Sharekhan by BNP Paribas feels there could be further positive earnings surprise in store for Q4FY21.
Brokerage firm Credit Suisse says a pick-up in Accenture’s revenue growth and strong bookings augur well for the demand environment.
Nifty may remain rangebound between 13,600–13,100 levels. The key support level for the index is now placed at 13,300 followed by 13,100.
Most experts say the rally is expected to continue in broader space, as both midcap and smallcap indices are still below their record highs of January 2018.
With midcaps and smallcaps expected to outperform largecaps, especially after September quarter earnings, this is the right time to build a portfolio, analysts have said.
As the sector rotation & market breadth has been healthy, one could maintain a combination of long short positions for the rest of the series.
As the COVID-19 pandemic has driven an increased focus on digital transformation, tech spending is expected to hold up better as customers invest to ensure business continuity and seamless operations.
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.
Neeraj Chadawar of Axis Securities believes that the equity will continue to trade on higher multiples for some more time.
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.
On the higher side, 10,334 - 10,351 will continue to act as a stiff resistance zone for Nifty which needs to be taken out on a closing basis for the extension of the rally.
The next resistance for Nifty is seen at 10,200 and 10,550, which happens to be 50- day exponential moving average and 61.80 percent retracements of the entire fall seen from January 2020 (12,430) to March 2020 (7,511).
On the downside now, strong supports would be in the range of 9,050 levels near the 50-day average and any decline near 9,250 would be a good opportunity to add longs.
In this truncated week, we have F&O expiry for the May series. The options data indicates that the maximum Put base is placed at 9,000 followed by 8,800 strikes.
Experts point out that the COVID-19 pandemic came in stages across the world and its fading away also will happen in phases over the next few quarters.
The Nifty is up 8 percent, while mid-cap and small-cap indices are up 9 percent and 14 percent, respectively, from the last derivatives expiry till date.
Hence every expert on the street advised buying quality stocks in a gradual manner instead of bulk purchases and waiting for the market bottom which no one has found yet in the history.
A sustained trade below 8260 could drag the Index lower to levels of 8080 and 7800. On the flip side a trade beyond 8450 can activate short covering rallies taking Nifty higher to levels of 8740 and 8960.
Mitesh Thakkar of miteshthakkar.com suggests selling Axis Bank with a stop loss of Rs 688 for target of Rs 655 and Equitas Holdings with a stop loss of Rs 104 for target of Rs 95.
Sudarshan Sukhani of s2analytics.com recommends buying Dabur India with stop loss at Rs 459 and target of Rs 474 and MRF with stop loss at Rs 65500 and target of Rs 68750.
Mitessh Thakkar of mitesshthakkar.com suggests buying Axis Bank with target at Rs 785 and stop loss at Rs 751.
Sudarshan Sukhani of s2analytics.com recommends buying L&T Finance Holdings with stop loss at Rs 115 and target of Rs 124 and Tech Mahindra with stop loss at Rs 764 and target of Rs 795.
Sudarshan Sukhani of s2analytics.com recommends buying HCL Tech with stop loss at Rs 542 and target of Rs 585 and ICICI Prudential Life Insurance with stop loss at Rs 487 and target of Rs 515.
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.