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
Sudarshan Sukhani of s2analytics.com is of the view that one may sell Axis Bank with stop loss at Rs 735 and target of Rs 715.
Experts believe not only largecaps but also midcaps with good fundamentals and firm Q2 results can outperform broader indices in the coming quarters
Ashwani Gujral of ashwanigujral.com advises buying HDFC Life with stop loss at Rs 625 and target of Rs 650.
Nifty Put-Call option distribution data is suggesting is support at 11,400 levels and resistance at 11,800 levels.
Dinesh Thakkar of Angel Broking said though MF inflows this year have slowed down, he was very confident that MF inflows will pick up from here on as market sentiment improves
For the markets to extend the recent euphoria, the Nifty will have to clear the 11,700-mark.
In case of breakout, the index will face hurdle around its psychological level of 12,000.
Some volatility can not be ruled out since we have expiry of the September series future and option contracts coming up on September 26 .
HSBC also said Voltas had not seen slowdown in demand in the room AC industry in Q2FY20 though project business outlook continued to be a mixed bag
The immediate hurdle for the index is 11,150, and if we close above this levels then we could further witness short covering which could take the index higher towards 11,200-11,250 levels.
Thunuguntla said stocks in non-banking sectors have been languishing that reflects the impact of a slow economy
Prakash Gaba of prakashgaba.com recommends buying Maruti Suzuki with target at Rs 5750 and stop loss at Rs 5450 and Reliance Industries with target at Rs 1205 and stop loss at Rs 1160.
Bears are likely to keep control over the markets and the current trend is likely to remain under pressure with Nifty moving towards 11,000-10,900 levels.
Sudarshan Sukhani of s2analytics.com recommends buying Bata India with stop loss at Rs 1295 and target of Rs 1340 and Hindustan Unilever with stop loss at Rs 1710 and target of Rs 1755.
A breakout above 11,850 levels can infuse a rally which could take the index towards 12,000-12,100 levels
A move above 11,620-11,590 can trigger short covering rallies to the upper end of the range which is 11,850. Any significant move will be visible on a breakout on either side from this range.
In case of banks, Morgan Stanley believes asset quality and loan growth are expected to be strong which will drive their earnings going ahead, especially after facing problem on asset quality front for past several quarters.
The chart pattern suggests that if Nifty crosses and sustains above 11,970, it would witness buying that would lead the index towards 12,100-12,250
Rate cut usually acts as a sentiment booster and aid companies that have to service large debts
Ashwani Gujral of ashwanigujral.com recommends buying Escorts with a stop loss of Rs 810, target of Rs 845, Ujjivan Financial Services with a stop loss of Rs 332, target of Rs 347 and L&T Finance Holdings with a stop loss of Rs 146, target of Rs 160.
VIX has seen cooling off from high of 19 this month. Further decline with be positive for the market and for breakout to sustain. Rise in VIX from current level would put a pause in current rally.
Ashwani Gujral of ashwanigujral.com recommends buying Motherson Sumi Systems with a stop loss of Rs 157, target of Rs 172, ONGC with a stop loss of Rs 144, target of Rs 158 and Voltas with a stop loss of Rs 562, target of Rs 578.
Ashwani Gujral of ashwanigujral.com recommends buying Sun TV with a stop loss of Rs 600, target of Rs 625, Divis Labs with a stop loss of Rs 1600, target of Rs 1645 and Axis Bank with a stop loss of Rs 705, target of Rs 724.
With continuous improvement in operating performance, we expect a healthy up side in the near-term too. We continue to maintain Buy with target price of Rs 680.
Mitessh Thakkar of mitesshthakkar.com recommends buying Shriram Transport Finance with a stop loss of Rs 1050 and target of Rs 1098, Tech Mahindra with a stop loss of Rs 740 and target of Rs 774 and IndusInd Bank with a stop loss of Rs 1524 and target of Rs 1585.