Stock market today: Domestic equity benchmarks Sensex and Nifty 50 took a breather after a record rally and settled on a flat note on Tuesday, September 3, amid a lack of fresh catalysts, while weak global cues kept investors cautious. The 50-stock index settled in the green for the 14th straight session. Halting its 10-day rally, the 30-share BSE Sensex dipped 4.40 points or 0.01 per cent to settle at 82,555.44.
The domestic market lacks fresh triggers, with most factors, including the 25 bps rate cut by the US Fed, already largely priced amid stretched valuations. Experts believe a healthy consolidation period is needed to restore valuations to more comfortable levels. Global cues are also muted as investors await US macro prints to gauge the potential Fed rate cut this month.
Also Read: Week Ahead: Auto sales, IPO action, FII activity, global cues among key market triggers this week
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.
Let's take a look at the top four technical and fundamental stocks for this week by brokerage SMC Global Securities:
Alembic Pharma is improving depth in the current strength with new launches planned in FY25 and launches done in FY24. It is increasingly focused on the animal health with therapy leading the products. Animal health business grew 23 per cent in Q1FY2025 with a basket of brands driving performance.
In Q1FY25, net sales grew five per cent to ₹1,562 crore. India's branded business grew nine per cent to Rs. 572 crore for the quarter, and US Generics grew 18 per cent to Rs. 461 crore. EBITDA is up 14 per cent to Rs. 239 crore, and net profit is up 12 per cent to Rs.135 crore.
In Q1FY2025, the company recorded robust growth in its gastroenterology, gynaecology, antidiabetic, and ophthalmology therapies and performed relatively better than the market in acute therapies. Going forward, news launches across the market and production ramp-up in new facilities would drive future business growth. The brokerage expects the stock will see a price target of Rs. 1,259 in 8 to 10 months on a target P/BVx of 4.8x and FY25 BVPS of Rs. 262.28.
Due to investments, the bank expects the cost-to-income ratio to be 48-51 per cent for the next 6-7 quarters. The benefits of digitalization will be visible thereafter. The bank expects to maintain a long-term average RoA of 1.5 per cent. The bank expects the credit cost to decline in FY2025 from FY2024.
The bank has maintained the loan growth guidance of a double-digit level for FY25. The bank expects to launch new products by September 2024. The bank has also started unsecured retail lending on a pilot basis, while it is not aggressive in building an unsecured retail segment.
On the asset quality front, the bank expects the recoveries and upgrades to be higher than fresh loan slippages in FY2025. The brokerage expects the stock to see a price target of Rs. 196 in 8 to 10 months on a three-year average P/BV of 1.57x and FY25 BVPS of Rs.124.91.
The stock's 200-day Exponential Moving Average (DEMA) on the daily chart is currently at ₹288. The stock recently tested its 200-day exponential moving average (EMA) support and successfully rebounded, indicating strong underlying support. Additionally, it broke through a significant trend line resistance on the daily chart.
In a longer time frame, it was retraced to test previous peaks formed in January and February this year as support. The current chart pattern and technical indicators suggest that the stock is positioned for potential further price increases. One can consider buying the stock within the 330-335 range, with an upside target of 375-380 and a stop-loss below 310.
Also Read: Stock market today: Sensex, Nifty 50 end flat on lack of fresh triggers, weak global cues
The 200-day Exponential Moving Average (DEMA) of the stock on the daily chart is currently at 551. The stock has formed a pattern of higher lows on the daily chart and recently broke through a resistance level with increased volume. It is currently trading above its 20-day exponential moving average. This breakout, accompanied by a significant rise in trading volume, indicates potential for further price gains. One can consider buying the stock within the 595-600 range, with an upside target of 670-675 and a stop-loss set below 550.
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.
