Stock market today: Domestic equity benchmarks Sensex and Nifty 50 extended gains for Tuesday's second consecutive trading session, buoyed by a rally on Wall Street overnight amid hopes of a potential US Fed rate cut next week. IT and pharma stocks led the surge, with the Nifty IT stocks rising five per cent, fueled by optimism over potential interest rate cuts.
Sensex closed with a gain of 362 points, or 0.44 per cent, at 81,921.29, and the Nifty 50 closed 105 points, or 0.42 per cent, higher at 25,041.10, with 34 stocks in the green. Mid-cap and small-cap indices outperformed the benchmark, with the Nifty 50 gaining 0.42 per cent to close above 25,000 at 25,041 points.
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:
During the quarter, net interest income grew 19 per cent to ₹2291.98 crore, while the net interest margin de-grew to 3.16 per cent in Q1 FY25 from 3.20 per cent in Q1 FY24. According to the bank's management, it was the strongest quarter, with very good growth across all key parameters.
Strong business momentum has aided meaningful gains in market share. According to management, the bank reported strong broad-based credit growth in Q1FY2025, and the overall costs are well managed. The bank is comfortably capitalized and has a healthy retail deposit base that supports liquidity.
Also Read: Stock market today: Nifty 50 closes above 25,000, Sensex nears 82,000; IT stocks drive rally
These factors benefit the bank by allowing it to achieve higher credit growth and margin improvement. The brokerage expects the stock to see a price target of Rs.216 in 8 to 10 months on a one-year average P/BV of 1.42x and FY26 BVPS of Rs.152.37.
According to the company's management, consistent revenue growth is driven by volume increases across modalities and enhanced operational performance, supported by the strong results of its established centres and the progress in its emerging centres.
According to the company's management, occupancy is expected to reach 70 per cent in FY25, and the firm has been working to improve operations at its emerging centres. Its Kolkata centre has shown promising growth and is now contributing to its overall EBITDA.
The company is confident that the emerging centres will see revenue growth and margin expansion over the next 12 months. The brokerage expects the stock to see a price target of Rs.448 in 8 to 10 months on current P/BV of 6.83x and FY25 BVPS of Rs. 65.60.
The stock's 200-day Exponential Moving Average (DEMA) on the daily chart is currently at 737. The stock has been trading under pressure for the past few months, marking its 52-week low of 647.95 in June.
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 broken out above the falling trend line of the long-term bearish channel, with signs of potential reversal. Therefore, the brokerage said that one can buy the stock on dips in the range of 785-780 for the upside target of 880-890 levels with SL below 720 levels.
The stock's 200-day Exponential Moving Average (DEMA)on the daily chart is currently at ₹1,209. The stock has been consolidating in a broader range of 1,170-1,320 on short-term charts, while broader trends remain 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 1320 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.
The brokerage expects that it can buy the stock in the range of 1,345-1,325 with an upside target of 1,600-1,630 and a SL below 1,200.
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.
