Stocks to buy: NTPC to United Spirits—SMC Global Securities lists four stocks to bet on this week with up to 20% upside
- Stocks to buy: Stocks to buy: Domestic brokerage SMC Global Securities has recommended four stocks to buy this week based upon the fundamental and technical analysis in the current market scenario
Stocks to buy: Domestic equity benchmarks Sensex and Nifty 50 settled higher for the third consecutive session on Tuesday, December 3, supported by greater buying in blue-chip stocks such as HDFC Bank, Reliance Industries, and Larsen and Toubro (L&T) and firm trends in global markets.
Nifty 50 jumped 0.85 per cent to 24,481.35 in intraday trade, breaking above its 50 and 100-day exponential moving averages (DEMA). The broader NSE index rose by 181.10 points or 0.75 per cent, settling at 24,457.15. The 30-share index jumped 597.67 points or 0.74 per cent to settle at 80,845.75. During the day, it surged 701.02 points or 0.87 per cent to 80,949.10.
The Nifty 50 and the Sensex gained 2.3 per cent in the three sessions. The Nifty 50 is now 6.9 per cent below its all-time high levels hit in late September. Both benchmarks fell into the correction territory last month.
The domestic market is witnessing broad buying interest, as the mid-and small-cap segments also clocked healthy gains. The Nifty Midcap 150 (up 0.88 per cent) and the Nifty Smallcap 250 index (up 0.94 per cent) jumped by a per cent.
In the current market scenario, domestic brokerage firm SMC Global Securities has released its top four stock picks for this week. The brokerage has selected the following stocks based on technical and fundamental parameters. According to the brokerage, the stocks have robust fundamentals and are well-placed to yield good returns for investors in the next one year.
Weekly Stock Picks by SMC Global Securities
Let's take a look at the top four technical and fundamental stocks for this week by brokerage SMC Global Securities:
1.NTPC Limited: (CMP): ₹367.50; Target Price: ₹430, Upside: 18 per cent
NTPC registered the highest-ever coal production of 19.23 million metric tons in H1 FY25, with a growth of over 19.74 per cent as against 16.06 MMT in H1 FY24. Cumulative expenditure of Rs. 11,585 crores have been incurred on the development of coal mines till September 30, 2024
The company has robust thermal assets that provide visibility of cash flow. Its focus on overall energy security plans and investment across its value chain indicates the company's future growth. In H1 FY25, the PLF of NTPC's coal stations was 76.31 per cent, against the national average of 70.63 per cent.
Lara station of NTPC, with a PLF of 91.63 per cent, is the 5th ranked station, and Singrauli station, with a PLF of 88.83 per cent, is the 13th ranked station in the All India PLF Ranking from April to September 2024. The brokerage expects the stock to see a price target of Rs. 430 in 8 to 10 months on a one-year average P/BV of 2.23x and FY26 BVPS of Rs.193.
2.United Spirits Ltd: CMP: CMP: ₹1,542.55; Target Price: ₹1,756, Upside: 15 per cent
The company reported steady performance during H1FY25, helped by strong demand for its premium alcohol brands such as Antiquity and Signature. According to the management, the company is optimistic about the festive season, and a long-term growth prospect supported by the reopening of the business in Andhra Pradesh after almost five years is a structural tailwind.
The company's management remains focused on enhancing the portfolio's long-term competitiveness, sustainably delivering in a soft-demand environment, and harnessing every opportunity to create long-term value. The brokerage expects the stock will see a price target of Rs. 1,756 in 8 to 10 months on one year’s average P/BVx of 13.18x and FY26 BVPS of Rs. 1,33.21.
3.Housing and Urban Development Corporation (HUDCO)
The daily chart shows the 200-day Exponential Moving Average (DEMA) of the stock at 223. The stock has been trading lower since long as prices have seen a corrective phase from 350 to 200 levels over the months. However, the stock managed to take support there and bounced back after forming a Double Bottom pattern.
Last week, fresh momentum was witnessed as prices surged above their 200-day exponential moving average on daily charts, with a breakout seen above the W pattern formation. Therefore, one can accumulate the stock in the range of 235-240 for the expected upside of 295-300 levels with S/L below 200 levels.
4.Syngene International Ltd
The stock's 200-day Exponential Moving Average (DEMA) on the daily chart is currently ₹805. On broader charts, the stock has been maintaining its bullish momentum as prices can be seen fluctuating within a rising channel. On the short-term charts, a brief consolidation has been witnessed in the 840-940 levels over the last 6 to 7 weeks.
Technically, the stock has given a fresh breakout above its key resistance level of 940, with a breakout also being observed above the Rectangle pattern. The positive divergences on secondary oscillators, along with price action, suggest a next round of bullish momentum in the stock. Therefore, one can accumulate the stock in a range of 935-940 for the upside target of 1060-1070 levels with SL below 860.
Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.
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