Ahead of the US Presidential elections, the markets are expected to remain highly volatile. Apart from the elections, the anticipation of Q2 results is also driving stock prices, especially among large caps.
Some many look at the dramatic highs and lows as an opportunity to make short term gains. Analysts have made their picks in various sectors.
1. Asian Paints
Asian Paints hit another record high of Rs 2,108.95 on Wednesday ahead of its September-ended quarter results which are scheduled to be out on 22 October.
The company is expected to report a good recovery in quarterly earnings and also consider paying an interim dividend.
"The stock has taken support from previous breakout level of Rs 1,900 and it is still intact. Once the stock crosses Rs 2,070, it should move towards Rs 2,150-2,200. Buy on dips should be the strategy," Axis Securities was quoted in Economic Times.
Motilal Oswal also has a buy rating on Asian Paints with a target price of Rs 2,140.
After the correction seen in Reliance Industries Limited in the last 2-3 weeks, Axis Securities sees it as an opportunity to buy the stock with an upside target of Rs 2,400-2,500.
The conglomerate announced another foreign investment for its subsidiary Reliance Retail on Tuesday.
3. PNB Housing Finance
Rahul Sharma, market strategist and research head (equity) at Equity99 Advisors picked PNB Housing Finance among NBFCs (non-banking finance companies) as he believes that the stock has "a good upside move in the short term." Placing the target price on the stock at Rs 400-425, Sharma believes that there is a big breakout after Rs 350 and Rs 352 levels technically.
4. Sundram Fasteners
Sharma from Equity99 Advisors is seeing a rebound in the auto ancillary sector after improvement in automobile sales numbers seen in August and September, picking Sundram Fasteners despite the stock being overvalued.
The TVS Group company "has performed well given its good performance in the past" and been a wealth created for its investors, he said.
Sharma is expecting Sundaram Fasteners to shine when auto ancillaries pick up and placed a price target of Rs 480 to 500.
5. Dilip Buildcon
Dilip Buildcon Limited is Equity99 Advisors' recommendation in the construction sector since it is sitting on the largest order book in its history and is currently available at Rs 350 levels. The investment advisor finds the stock's valuation attractive with a 6-month price target of Rs 425-450.
ICICI Securities has a buy rating on Cipla with a target price of Rs 842 based on technical analysis. "Faster retracement on the long-term chart as 20 quarter down leg (752- 355) was completely retraced in just 2 quarter and MACD in buy mode," it said.
7. Tech Mahindra
Motilal Oswal has a buy rating on Tech Mahindra with a target price of Rs 865.
ICICI Direct also has a buy rating on the stock with a target price of Rs 950 for a 6-month time frame. The brokerage advised buying the stock in the Rs 830-850 range.
"The IT sector remain in secular up trend since bottoming out in March 2020. As the major IT companies as trading at their all-time highs and are forming higher peak and higher trough in all time frame. The share price of Tech Mahindra is currently placed at the previous multiple high since February 2019 around Rs 840-850 levels. We expect the stock to resolve above the same and extend the current up move," ICICI Direct said.
8. Bharti Airtel
The stock has seen a significant correction from its life highs seen earlier this year. Placed at a significant support threshold of around Rs 400, Bharti Airtel is turning the risk-reward extremely favourable, said ICICI Direct to ET.
"We expect share price to attract strong buying demand around Rs 400 and gradually head towards Rs 490 in the coming quarter," the brokerage said.
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