’Current setup a ‘Buy on Dips’ market’: Axis Securities; suggests these stocks to buy this month

Domestic brokerage and research firm Axis Securities continues to maintain a positive long-term outlook on the market supported by the favourable structure emerging with increasing Capex enabling banks to improve credit growth. 

The brokerage house has maintained its NIFTY March 2023 target of 18,400 unchanged. “Though aggressive policy tightening will help in curbing inflationary pressure, we believe that the persistently elevated Oil and Commodity prices would continue to pose challenges to the market multiple in the next few quarters,” the note stated. 

The current level of India VIX is below its long-term average, indicating that the market is in a neutral zone (which is neither panic nor an exuberance zone). While the medium to long-term outlook for the overall market remains positive, the brokerage said volatility in the short run could be seen with the market responding in either direction. 

“In this context, the current setup is a ‘Buy on Dips’ market. We recommend investors maintain good liquidity (10%) to use such dips in a phased manner to build a position in quality companies (where the earnings visibility is very high) and with an investment horizon of 12-18 months,” said Axis Securities.

Based on the above themes, the brokerage has recommend following stocks as its top picks for the month of November which are ICICI Bank with a target price of ₹1,150, Tech Mahindra (TP: ₹1,200), Maruti Suzuki India (TP: ₹10,600), State Bank of India or SBI (TP: ₹665).

It also has Buy tags on Dalmia Bharat (TP: ₹1,850), Federal Bank (TP: ₹155), Varun Beverages (TP: ₹1,300), Ashok Leyland (TP: ₹175), Astral Ltd (India) (TP: ₹2,500), Bata India (TP: ₹2,200), APL Apollo Tubes (TP: ₹1,200).

HealthCare Global Enterprises (TP: ₹330), Praj Industries (TP: ₹550), CCL Products (India) (TP: ₹600), Polycab India (TP: ₹3,080), and Bajaj Finance (TP: ₹8,600).

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.