Stock market today: Domestic equity benchmarks Sensex and Nifty 50 experienced another day of consolidation on Tuesday, September 17, as traders remained cautious ahead of the US Federal Reserve's upcoming monetary policy meeting. On Wednesday, Jerome Powell-led US Fed is expected to implement its first interest rate cut since 2020.
The Nifty 50 ended the session with a 0.14 per cent gain at 25,418 points, nearing an all-time high of 25,445 points during the session, with just 27 points away. The S&P BSE Sensex ended with a 0.11 per cent gain at 83,079 points, also hitting a new peak. In the broader market, the BSE smallcap gauge declined 0.13 per cent, and midcap index edged lower by 0.08 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.
Let's take a look at the top four technical and fundamental stocks for this week by brokerage SMC Global Securities:
As of June 2024, the capital adequacy ratio (Basel III) stood at 16.65 per cent. Tier I was at 14.52 per cent and Tier II at 2.13 per cent. The private bank's return on average assets (ROA) and return on equity (ROE) stood at 1.65 per cent and 16.26 per cent, respectively in the quarter ended 30 June 2024.
According to SMC Global, the bank is well-capitalized and has adequate liquidity buffers for future growth. Improving asset quality and a strong position in payments and digital Banking indicate future growth visibility. It became a resilient all-weather franchise, delivering higher growth across focused granular business segments.
According to the bank's management, the bank stays focused on three core areas of the GPS strategy's execution becoming a resilient, all-weather franchise, creating multiplicative forces to build competitive advantage and building for the future. The stock is expected to see a price target of Rs. 1,367 in 8 to 10 months on current P/BV of 2.39x and FY25 BVPS of Rs. 572.02.
The company's management expects its EBITDA margin to improve by 100 to 150 basis points from its FY24 margin. R&D expenditures are projected to be around eight per cent of sales for the full year. During the quarter, the company launched 10 new products in the India formulation business and seven new products in the US.
According to the management, sustained growth momentum across businesses and enhanced profitability drove strong Q1 performance. The execution success of differentiated pipeline in the US and the outperformance of India's Geography business were particularly noteworthy.
The company is on course to achieve growth aspirations for FY25 and is committed to investing in sustainable growth initiatives and innovative solutions for the future. The stock is expected to see a price target of Rs. 1,355 in 8 to 10 months on a current P/BVx of 5.68x and FY25 BVPS of Rs. 238.63.
The stock's 200-day Exponential Moving Average (DEMA) on the daily chart is currently at 1,440. The stock has been trading under pressure since the beginning of the year when it marked its 52-week low of 1,329.20 in August. However, a sharp recovery has been witnessed in the prices, as, once again, momentum was seen picking up above the 200-day exponential moving average on daily charts last week.
Technically, the stock has given a breakout above the falling trend line of long-term bearish channels with signs of potential reversal. A fresh breakout on short-term charts has also been observed above the Inverted Head & Shoulder pattern. Therefore, one can buy the stock in the range of 1,450-1,460 for the upside target of 1,540-1,550 levels with SL below 1,400 levels.
The stock's 200-day Exponential Moving Average (DEMA) on the daily chart is currently at ₹765. The stock has been consolidating in a broader range of 700-820 on broader charts while the trend remains intact with a bullish move as the stock can be seen holding well above its 200-day exponential moving average on daily charts.
Last week, charts above the key resistance level of 820 showed a fresh breakout after a phase of prolonged consolidation lasting more than six months. A substantial increase in trading volume supports the momentum, suggesting the potential for further price gains. Therefore, one can buy the stock in the range of 835-840 for the upside target of 990-1,000 levels with SL below 740 levels.
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.
