Indian stock market indices, Sensex and Nifty 50, traded lower on Monday dragged by heavy selling in auto, IT, realty, private banks and energy stocks amid mixed cues from global peers. The midcap and smallcap indices were also down over half a percent in early trade.
Analysts have recommended two stocks to buy amid this market setup based on the fundamentals and technical analysis. These two stocks to buy today are CG Power and Industrial Solutions and Samvardhana Motherson International.
Brokerage firm Anand Rathi has initiated coverage on CG Power and Industrial Solutions with a bullish view. The stock is among its fundamental value picks.
On the other hand, Samvardhana Motherson International shares have given a technical breakout on the price chart after accumulating for three months and analysts at Ventura Securities expect the stock to see further upward momentum. Here are stocks to buy:
Anand Rathi expects CG Power and Industrial Solutions to see strong growth going forward due to many factors such as capacity expansion on strong order book visibility, increasing its presence in the domestic market and looking for export opportunities and OSAT facility to provide additional growth.
With all these positives, the brokerage firm expects the company’s Revenue, EBITDA and PAT CAGR of 17%, 21% and 18% over FY23-26.
Anand Rathi has initiated coverage on CG Power and Industrial Solutions shares with a ‘Buy’ rating and a target price of ₹950, implying an upside potential of nearly 25% from Friday’s closing price. The time horizon is 12 months.
Samvardhana Motherson International Ltd is a promising stock to buy as it is showing a bullish pattern. The Aroon, ADX and MACD indicators are showing positive signs. With a continuous average support, it has given a 3-month accumulation breakout. An ascending triangle breakout is visible now after a higher bottom formation, said Bharat Gala, COO - Equity Broking, Ventura Securities.
Additionally, there is a long build up in the stock’s futures as well, he added.
Gala recommends to buy Samvardhana Motherson shares at its current market price (CMP) and add more at the support areas of ₹203 - 196 and ₹186 - 181, keeping a stop loss at ₹169. The target price for the stock is ₹300 apiece, implying an upside potential of nearly 40% from Friday’s closing price.
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 making any investment decisions.
