Paytm, BEL, Coforge, ICICI Bank and more: Top 7 technical stock picks by StoxBox

Stocks to buy: Domestic brokerage house StoxBox unveiled its "Techno Funda Super 7 picks" for November 2024, showcasing a curated selection of seven stocks that combine stability with growth opportunities. 

Chosen through comprehensive market analysis, these stock picks are designed to provide both short-term returns and sustained long-term value.

Technical Stock Picks

Bharat Electronics: BEL has seen a 24% correction after a 290% rally from January 2023 lows, indicating profit-taking by early investors. The recent bounce and breakout from a mini triple-bottom pattern on strong volumes suggest renewed buying and a potential trend reversal. Analysts recommend buying BEL at current levels (CMP-297) with a target of ₹323 and a stop loss of ₹284.

BEL's outlook is supported by major project executions worth ₹1,600 crore for the LRSAM project and ₹950 crore for D-29 EW systems. The company's five new Strategic Business Units are expected to drive substantial growth.

Coforge: The IT stock has shown significant strength, outperforming its sector benchmark and major indices. Since its May 2024 lows, the stock has surged by 83%, signalling a strong trend. A recent pullback to its 50DMA, which acts as a solid support, and a breakout from a mini-rounding bottom suggest further gains. StoxBox recommends buying Coforge at the current market price of ₹7,780 with a target of ₹8,459 and a stop loss of ₹7,473.

For Q2FY25, the company reported a 40% YoY rise in its 12-month executable order book to $1.31 billion. Its strategic expansion through Gen AI initiatives and the Cigniti acquisition further strengthens its growth trajectory.

Divi’s Laboratories: The pharma stock exhibits a strong uptrend following an 87% rally over 136 sessions, consistently supported by shorter-term moving averages and the 50 DMA, signalling strength and momentum. The stock recently consolidated, showing signs of a technical pullback and breakout. With its 50-period volatility declining, the chances of sudden price movements are reduced. A short-term buy is recommended at CMP ₹5,900, targeting ₹6,429, with a stop loss of ₹5,660.

The company’s Custom Synthesis segment is advancing with new projects across clinical phases, with strong demand from US and European clients. Divi’s focus on emerging anti-diabetic and anti-obesity drugs, alongside a stable demand for generics, positions it well for growth. Backward integration in future generics and capacity expansions are expected to drive continued success in the coming years.

ICICI Bank: The banking index is showing outperformance against the Nifty 50, potentially forming a double bottom pattern signalling a trend reversal. A cup and handle formation on the daily timeframe, with the 50 DMA acting as support, further strengthens the bullish outlook. With lower volatility, improving EPS strength, and strong buyer demand, ICICI Bank is recommended as a buy at CMP ₹1265, targeting ₹1354, with a stop loss at ₹1233.

In Q2FY25, ICICI Bank saw a slight margin compression, attributed to more operational days, which is expected to normalize by Q4FY25. NIMs are anticipated to remain stable unless a rate cut occurs. The bank is managing risk in unsecured lending with improved underwriting and pricing strategies. Slippages have stabilised, and credit costs are projected to remain within 40-50 basis points, supporting a positive outlook for upcoming quarters.

Larsen and Toubro: L&T’s share price has been trading within an 18% range since February 2024, recently attempting a rebound from the demand zone near ₹3,265. This suggests the potential formation of a double-bottom pattern, signalling a trend reversal. RSI on both daily and higher timeframes is above its median, indicating upward momentum. A buy is recommended at CMP ₹3,616 with a target of ₹3,849 and a stop loss of ₹3,498.

In Q2FY25, L&T reported strong results with 28% YoY growth in core E&C revenues and a 25% YoY rise in consolidated PAT. Order inflows increased by 13%, and the order backlog surpassed ₹5 trillion. The company’s diverse international presence, particularly in Central Asia and Africa, supports future growth. L&T maintains a 15% revenue growth target for FY25, with solid prospects in core E&C and real estate segments.

One 97 Communications: Paytm's stock has shown a consistent uptrend from a low near ₹310, supported by higher highs and lows, indicating strong momentum and buyer demand. The stock also demonstrates improving relative strength compared to the Nifty50 index. A buy is recommended at CMP ₹788, with a target of ₹850 and a stop loss of ₹760, said Stoxbox.

Paytm's large and active user base of 7.8 million monthly transacting users supports its diversified business model, which spans UPI payments, bill payments, and commerce services like ticketing. This broad reach allows Paytm to generate revenue from both merchants and consumers, providing stability in a changing market. With steady growth in key operating metrics, Paytm is well-positioned for profitability improvements in Q2FY25 and beyond, driven by growth in GMV, its merchant base, and the recovery in its loan distribution business.

Syngene International: Syngene's share price recently broke out from a year-long rounding bottom pattern, followed by a mild profit booking and a technical pullback. The stock has also broken out from a double-bottom pattern, signalling a potential trend reversal. Over the past 50 days, it has shown low volatility and relative strength compared to Nifty50, reducing the chances of erratic movements. A buy is recommended by the brokerage at CMP ₹905 with a target of ₹974 and a stop loss of ₹868.

Syngene stands to benefit from the BioSecure Act, which restricts US companies from outsourcing to China-based CDMO/CROs. As a leading CRO with strong client relationships and cost-efficient operations, it is well-positioned to capitalize on growth in the CRAMS space. Syngene continues to invest in expanding its Discovery Services and biologics business, creating strong growth visibility for the future.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.