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 market needs a close above short-term moving averages for an upward journey; until then, consolidation may continue. Below are some short-term trading ideas to consider.
The momentum is likely to sustain amid possible range-bound trading. Below are some trading ideas for the near term.
The benchmark indices, as well as broader markets, might extend the weakness. Below are some trading ideas for the near term.
The market trend is expected to remain positive amid consolidation. Below are some trading ideas for the near term.
The market is expected to remain rangebound with a positive bias in the upcoming sessions. Below are some trading ideas for the near term.
The market is expected to consolidate further until it trades below all key moving averages. Below are some trading ideas for the near term.
In the near term, the sentiment may continue to weaken as long as Nifty 50 stays below 22,400. On the downside, the index might decline towards 22,150.
On the lower side, 22,350-22,300 is the immediate key support for Nifty and as long as this holds, the chances of consolidation with positive is seen.
Ashok Leyland recorded healthy gains for yet another session and formed strong bullish candlestick pattern on the daily charts with above-average volumes.
Sentiment could potentially deteriorate further if Nifty drops below 21,550, where the 21EMA is situated.
Tata Motors has seen a decisive breakout of downward sloping resistance trendline adjoining highs of July 26 and September 20, and has formed robust bullish candlestick pattern on the daily charts with healthy volumes.
The Nifty Index is currently entrenched in a compelling bullish trend, with the potential to advance toward the 20,604 levels in the short to medium term.
KEC International has witnessed a strong move in the last week and has surged above the cluster of its EMAs (exponential moving averages) on the daily chart.
NALCO was the second biggest gainer in the futures & options segment, rising 6.5 percent to Rs 78.85 and formed strong bullish candle with healthy volumes. It has seen a breakout of horizontal resistance trend line adjoining November 16 and December 22 this year.
RPG Life Sciences has broken out from the Bullish Flag pattern on the daily chart. Stock has been forming higher tops and higher bottoms on the daily charts. Recently the stock price registered fresh all-time high at Rs 804 and current levels are very near to that level.
Welspun Corp was also in focus, climbing more than 8 percent to Rs 264 and formed bullish candle on the daily charts with above average volumes. On the monthly charts, it has seen a breakout of long downward sloping resistance trend line adjoining January 1, 2008, and May 2, 2022.
The benchmark indices like Nifty and Sensex could consolidate or may witness minor correction in the near term, as there is no support coming in from global equity markets.
The Nifty50 is expected to trade within the range of 17,300-17,800 in the short term, and if it decisively gives a close above the upper band of the said range, then there could be a move towards the psychological 18,000 mark, experts said
In Tuesday's trading session, Kalyan Jewellers India witnessed a long-term downsloping trendline resistance with heavy volume and managed to close above 6 months swing high. There is a breakout of Bullish Flag formation in a shorter time frame that generates further momentum.
Technical indicators are giving positive signals as Info Edge is trading above the 20 and 50 days SMA and there also recently a positive moving average crossover as the 20 days SMA moved above the 50 days SMA.
On the weekly and monthly time frame, Welspun Corp is trending higher forming a series of higher tops and bottoms indicating strong up trend. However with Friday's up move the stock has confirmed "Symmetrical Triangle" breakout at Rs 220 levels. This breakout is accompanied with huge volume spurt indicating increased participation.
Sun TV Network rebounded from its two years major support of Rs 400 levels. This buying was accompanied with huge volumes which signals buying support near major support zones. The stock is well placed above the 20-day SMA which remains a positive sign.
Currently JK Lakshmi Cement is well placed above 20, 50 and 100 day SMA. The daily weekly strength indicator RSI is in bullish terrain which supports rising momentum. The daily "band Bollinger" buy signal indicates increased momentum.
RHI Magnesita India is well placed above its 20, 50, 100 and 200 day SMA which reconfirm bullish sentiments. With current week's high (Rs 668) it has registered an all-time high indicating positive bias.
The technical indicators have strongly backed the momentum, wherein the MACD (moving average convergence divergence) witnessed a positive crossover affirming the inherent strength in Welspun Corp, said Sameet Chavan of Angel One