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Showing posts from August 21, 2011

How to analyse a company

Over the past few weeks, we have, in this column, explained facets of fundamental analysis. But where, as some of our readers have asked, is the information on financials, corporate plans and histories required to analyse a company, available? Here's listing a few sources you can tap for the same. Announcements and reportsThe first source would be the documents and updates that companies themselves put out. Take the annual report. These are usually treasure troves of information on financials, material developments through the year, management strategies and outlook. The how-to guide for reading annual reports has previously been detailed in this column. An added bonus in annual reports is the industry analysis, which appears in the Management Discussion and Analysis segment.Next, companies routinely make announcements about their operations such as orders secured; clients added, deals signed, mergers and acquisitions, and so on. Reading up on these will allow you to keep track of…

investment world

August 20, 2011:
The stock decisively broke through its key long-term support band between Rs 2,150-2,200 by tumbling 7 per cent with good volumes last week. This decline has strengthened its medium-term downtrend. Moreover, the stock has been on a short-term trend from its July peak of Rs 2,529. Its decline can continue until it finds support at Rs 2,000, which is key base level. Trader with short-term perspective can consider holding their short positions with stop-loss at Rs 2,090 levels. Nevertheless, an emphatic move beyond Rs 2,150 will push the stock higher to Rs 2,270 levels. Next resistance is at Rs 2,350. The stock continues to be in a medium-term downtrend trend. Strong dive below Rs 2,000 will pave the way for a decline to its subsequent significant support at Rs 1,900 in the upcoming months. Reliance Industries (Rs 731.2) RIL slumped almost 4 per cent last week. Reinforcing the stock's medium-term downtrend, it fell below our medium-term support level of Rs 750 and to…