Domestic equity benchmarks Sensex and Nifty snapped their two-day rally and closed lower on Tuesday, November 26, in line with weak global market trends amid concerns over US President-elect Donald Trump's tariff threats. Investors are worried about the potential impact on global trade relations due to Trump's policies, prompting them to book profits at higher levels.
In a volatile trade, the 30-share BSE Sensex declined 105.79 points, or 0.13 per cent, to settle at 80,004.06. During the day, the index lost 311.18 points, or 0.38 per cent, to 79,798.67. The broader NSE Nifty declined by 27.40 points, or 0.11 per cent, to settle at 24,194.50. The Nifty Midcap 100 index ended the session with a slight gain of 0.02 per cent at 55,914, while the Nifty Smallcap 100 index managed to post a gain of 0.82 per cent at 18,265.
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:
ICICI Bank's asset quality was stable in Q2FY25. The gross NPA ratio reduced to 1.97 per cent as of 30 September 2024 compared to 2.48 per cent as of 30 September 2023. The net NPA ratio declined to 0.42 per cent as of September 2024 compared to 0.43 per cent as of September 2023. According to the brokerage, the bank shows strong business growth and improved asset quality.
It is leveraging digital and technology across businesses to grow the risk-calibrated core operating profit. It is seeing increasing customer adoption and usage of its digital platforms. The brokerage expects the stock to see a price target of Rs. 1,512 in the 8 to 10 months on a three-year average P/BV of 3.34x and FY25 (E) BVPS of Rs. 452.73.
Mastek's deal pipeline remains strong with an order backlog of ₹2,195 crore, a growth of 17.9 per cent on a year-on-year (YoY) basis in rupee terms and 10.9 per cent in constant currency terms on a YoY basis. Total active clients were 380 in Q2FY25 compared to 391 in Q1F25, reflecting deeper account mining and higher revenue per account.
The company's performance across the Americas, UK, and European markets continued to be resilient and drove growth. It continues to win and onboard new customers across the geography and has a strong deal backlog. The strong deal pipeline with an order book of Rs. 2,195 crore indicates future growth visibility. The brokerage expects the stock will see a price target of Rs. 3,654 in 8 to 10 months on a target P/E of 26x and FY26 EPS of Rs.140.52.
The stock's 200-day Exponential Moving Average (DEMA)on the daily chart is 448. According to the brokerage, the stock has been consolidating in a broader range of 445-505 for the last two months, with prices holding well above its key moving averages on daily and weekly intervals.
Last week, the stock broke out above the Symmetrical Triangle pattern on short-term charts. Fresh Bullish momentum has been witnessed above the W pattern on broader charts. The stock has formed a double bottom pattern around 445 levels and took support at its 200-day exponential moving average on daily charts. One can accumulate the stock in a range of 505-510 for the expected upside of 565-570 levels with S/L below 470 levels.
The stock's 200-day Exponential Moving Average (DEMA) on the daily chart is currently at ₹216. On broader charts, the stock has been trading lower as prices have witnessed a corrective phase from its 52-week high of 264 levels to 205 levels over the past weeks. However, the stock took support around its 200-day exponential moving average and witnessed a fresh pullback rally thereon.
Technically, the stock has formed an Inverted Head and shoulder pattern on a daily time frame, with a breakout seen above the neckline of the pattern formation. The positive divergences on secondary oscillators and price action suggest a next round of bullish momentum in the stock. One can accumulate the stock in a range of 220-225 for the upside target of 244-245 levels with SL below 205 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.
