Get started

Fundamental Analysis

THE FEAR IS REAL. MAKE USE OF IT FOR THE LONG TERM!Disclaimer: The following article is not investment advice. It is solely prepared for educational purposes, specifically regarding the Indian markets and aimed at people interested in long-term investments. The numbers mentioned reflect the data available at the time of writing. Hello people, We are witnessing significant movements in the Indian markets, with news of small-cap stocks entering a ‘bear market’, mid-caps falling nearly 16%, and the major index, NIFTY 50, down about 11% since September. This has led to a decline in SIPs (by 109%) and raised questions about the resilience of common Indian equity investors. SMID stocks have performed the worst since the Covid crash, and various narratives are circulating, such as ‘BUY THE DIPS’ and others equally discouraging equity investment altogether. Regardless of these narratives, it is evident that during substantial declines or bear markets, even fundamentally strong stocks—those suitable for long-term investments—can be purchased at discounted prices. These are the stocks widely considered the right choice and can be made use of for this phase of the market according to proficient professionals. The question remains: which are they? This article highlights a few of these stocks based on my analysis. I share them to raise awareness, especially for those looking for such opportunities, but I am NOT advising you to buy them. What makes this content relevant is that it comes from someone who has been monitoring the market out of initiative, from a genuine interest over the past 3-4 years. So let's begin. My top pick stock ticking all the boxes is Mahanagar Gas . It has impressive financials and is a fundamentally strong mid-cap company. It's both a value stock and a good growth stock (two common investing styles are value investing and growth-based investing). The stock's P/E ratio is 12.6, indicating it might be undervalued. The current price is ₹1,343, and the intrinsic value (according to Screener) is ₹1,479. As a mid-cap stock, it holds significant growth potential with a medium risk level—lower than that of small caps. It’s currently priced at a 31% discount. Next I see Indus towers . Again good fundamentally, making it a good pick for long-term investors. As a large-cap stock, its growth potential is less than mid or small caps, but it’s still solid and carries lower risk of all. Its P/E ratio is 9.18, indicating potential undervaluation. However, one downside is that although its debt-to-equity ratio is 0.75 (which is good), its enterprise value exceeds the market cap, possibly suggesting high debt or overvaluation (which I doubt). Additionally, promoter holdings have decreased by 3% in the last quarter. Among the other options are Godawari Power and Andhra Petrochemicals . Godawari Power is a solid mid-cap stock, with one exception: its 10-year sales growth or compounded revenue growth does not exceed 10% over the last 10 years, a key criterion for long-term investments. However, its 7-year sales growth surpasses 10%, which is positive. With a P/E ratio of 14.5 and a 31% discount from its previous high, it seems undervalued and carries medium risk, with the potential for high growth. Last option is Andhra petrochemicals which unlike the others on this list, is a small-cap stock, making it suitable for those with a high-risk appetite. It has strong fundamentals and meets all the criteria required for long-term investment. The current price of ₹58.7 is below its book value of ₹64.8, and the intrinsic value is ₹154, indicating an attractive investment. It’s also interesting to note that when the price-to-book ratio is below 1 (P/BV < 1), it’s often considered an amazing deal .But again, this is a small-cap stock, so proceed with caution. Criteria Used All the stocks listed here have passed my evaluation based on four key areas required for a growing business: profitability, liquidity, leverage, and operational efficiency. Other factors considered include undervaluation, debt-to-equity ratio, and so on. Going forward, I am aware that there is a possibility of the markets falling further, which cannot be ignored. The narrative around March 20th and its significance in the market cycle is still present, and I would encourage caution. For those hesitant to invest now, I suggest keeping an eye on the charts. Wait for a solid bullish signal to appear, and confirm it with USOIL and USDINR charts. These are crucial for concluding about the trend of our markets. Additionally, perform a reality check on your investments: assess where your money is allocated, determine reasonable conservative targets, and evaluate the time frame for returns, apart from the projections made by portfolio managers and fund managers and their years of experiences too. Stats such as NIFTY MIDCAP 100 index giving negative returns from 2008 to 2014, is evident by directly observing the charts itself. I hope this information was valuable to you. Don't lose faith in the markets. Happy investing! “Be fearful when others are greedy and be greedy only when others are fearful.” – Warren Buffet
NSE:NIFTYEducation
by ThePassionate_investor
Is Lucid (LCID) Worth a Short-Term Trade Before Earnings?Lucid Motors (LCID) is setting up for an interesting move possibly before earnings Technical Setup – Signs of a Potential Breakout On the weekly chart, LCID looks like it's trying to break out of a downtrend, with the 20-SMA and 50-SMA starting to turn upward. On the daily chart, price action is bouncing off support ($2.90 - $3.00) and attempting to push past resistance at $3.10 - $3.20. Volume has been increasing, which could signal accumulation before a bigger move. Fundamentals – ➡️ Takeaway: Revenue is improving, but the company needs to show stronger growth momentum to justify its valuation. Profitability – Still Deep in the Red Q1 2024 loss: -680.86M (worsening) Q2 2024 loss: -643.39M (slight improvement) Q3 2024 loss: -992.48M (huge drop) TTM net loss: -2.97B ➡️ Takeaway: Lucid is still bleeding cash, and the key earnings catalyst is whether they show improved cost control or better gross margins. 3️⃣ Trading Plan – Earnings Risk & Strategy ✅ Safe Play: Wait for earnings reaction. Buy only if LCID breaks $3.20+ with strong guidance. ⚠️ Risky Play: Buy before earnings ($3.00 - $3.10) but set a strict stop-loss at $2.70 to manage downside. 🚀 Earnings Upside? If losses narrow or revenue surprises, expect a breakout toward $3.80 - $4.00. 🔻 Earnings Downside? Weak guidance or more dilution could send it below $2.70. Final Take Lucid is showing signs of life, but it’s still a high-risk trade. If you’re looking for a speculative move, it could be worth a shot, but just be ready for volatility next week. 🚀⚠️
NASDAQ:LCIDLong
by Missmoyeu
XRP Rocket Ready for Takeoff – 2-3 Digits in Sight 2025!🚀🔥 This Isn’t Just Another Move – This Is Liftoff! 🔥🚀 The pump window is set between February 14 and March 14, 2025, with key focus dates around February 14 and February 28. These align with algorithmic reversal points, signaling that volatility and a parabolic move are imminent. 💥 ATH will be completely obliterated – nothing is holding price back 💰 Smart money positioning confirmed – liquidity grabs fueling the next leg 📈 2-3 digit XRP in 2025 is Extremely likely 🔥 Massive momentum incoming – Expect a breakout that shatters all expectations. ATH will be left in the dust. Good luck & Buckle up… Next stop: PRICE DISCOVERY! -NeverWishing
BITSTAMP:XRPUSDLong
by NeverWishing
24
Day after Bybit HackYesterday, the Bybit hack occurred, and at the time, it was the biggest hack to a crypto exchange ever. Unfortunately, the hack happened during an accumulation phase of the price range. This makes me lean towards a breakdown, due to liquidity changes being too dramatic, too fast. I’m not 100% certain, but that’s my gut feeling. I expect a breakdown to the bottom dashed line of the range in the aftermath. The default TA suggests a sideways, range-bound environment, where each attempt at the upper resistance line \ fails to break out, and each test of the lower support line \ recovers quickly. The Momentum Swing logic uses EMA crossovers, consecutive bar checks, and ATR filters to generate potential buy/sell signals, while the bar coloring is driven by Stochastic thresholds that visually indicate overbought/oversold conditions right on the candles themselves. This combination of factors implies the market is oscillating in a tight zone with frequent reversals, lacking a clear directional bias so far. Overall, the picture portrays a price range that is locked in consolidation with repeated bounces off support and rejections at resistance, and in conclusion, everything together implies the 6-hour range is likely to remain sideways unless a decisive breakout occurs above or below these established boundaries. I think the Bybit event has solidified the breakout to be down. I hope I’m wrong here because I’m holding a bag, lol.
INDEX:BTCUSDShort
by Crypto_Moses
XAUUSD Consolidation before a rally to $3000 MarkPrice is moving within a horizontal range, showing accumulation or distribution. Multiple touches at both support and resistance indicate a well-defined structure. A valid breakout with volume confirmation would be an ideal long entry. Key Levels on the Chart: Support Zone: Around $2,920 - $2,925 (Lower boundary of the consolidation range). Resistance Zone: Around $2,940 - $2,945 (Upper boundary of the consolidation range). Breakout Target: $3,000 (Psychological resistance & target if the breakout happens). Trade Setup Considerations: Bullish Case: A break and retest above $2,945 with confirmation on the 15-minute or 1-hour timeframe could trigger a long position. First minor target: $2,960 - $2,970, then extended to $3,000. Bearish Case (Invalidation Level): If price fails to hold $2,920, it could trigger a pullback to the next support at $2,900 - $2,890. In that case, a reversal structure needs to form before considering longs again.
FOREXCOM:XAUUSDLong
by varma010
XRP/USDT 1D chart reviewHello everyone, let's look at the 1D XRP chart to USDT, in this situation we can see how the price moves under the downward trend line, but we can see some price stabilization, which can affect the potential change of trend. However, let's start by defining goals for the near future the price must face: T1 = $ 2.57 T2 = $ 2.39 Т3 = 2.15 $ T4 = 1.76 $ Let's go to Stop-Loss now in case of further declines on the market: SL1 = $ 2.77 SL2 = $ 3.07 SL3 = 3.40 $ The MacD indicator shows how we are still in the downward trend, but here you can see some stabilization, which may indicate an attempt to return to the upward trend.
by cryptodailyuk
1