Amidst a volatile market, four stocks are recommended to buy on May 24. Three of them are going to pay heft dividends in the range of 25% to 510% including two stocks being from Tata Group. These are Tata's auto giant Tata Motors, and retail leader Voltas, coupled with L&T Group's NBFC arm L&T Finance and engineering stock Patel Engineering.
1. Tata Motors Share Price:
Shiju Koothupalakkal - Technical Analyst at Prabhudas Lilladher has suggested BUY on Tata Motors for a target of Rs 1,000 with a stop loss of Rs 942.
After market hours of May 23, Tata Motors' shares stood at Rs 962.05 apiece, up by 1.55% on BSE with a market cap of Rs 3,19,760.31 crore.
The leading auto player has surged by 22% YTD. Tata Motors is set to deliver a final dividend of 300% amounting to Rs 6 per share to investors holding its ordinary shares, while it announced a final dividend payout of 310% worth Rs 6.10 per share having a face value of Rs 2 each, higher than the dividend that ordinary shareholders will get.
2. Voltas Share Price:
Also, a Tata Group-backed consumer stock. Prabhudas analyst has suggested BUY on Voltas for a target price of Rs 1405 apiece, with a stop loss of Rs 1320 apiece.
On BSE, Voltas shares stood at Rs 1347.35 apiece, up by 3.9% with a market cap of Rs 44,581.76 crore.
Voltas has also recommended a dividend of Rs 5.S0 per share on the face value of Re.1 per share (550%) for the year 2023-24 which shall be paid/despatched on or after the fifth day from the conclusion of the ensuing 70th Annual General Meeting, subject to the approval of shareholders of the Company.
3. L&T Finance Share Price:
Meanwhile, on this L&T Group-backed NBFC stock, the analyst has suggested BUY for a target price of Rs 165 apiece, with a stop loss of Rs 156 apiece.
On BSE, currently, L&T shares are at Rs 159.05 apiece, with a market cap of Rs 39,600.90 crore. YTD, L&T Finance shares are down by 5%.
L&T Finance has also suggested a final dividend of Rs. 2.5 per Equity Share (face value Rs. 10 per share) for the financial year 2023-24. The dividend, if approved by the Members at the forthcoming Annual General Meeting ("AGM") will be credited/dispatched within 30 days from the date of the AGM. In percentage terms, the dividend payout is 25%.
Stock Market Outlook:
Apart from recommending a buy on the above three stocks, Koothupalakkal expects the Nifty 50 index to find support at 22,800 and resistance at 23,200. While Bank Nifty is seen to have support of 48,400 and resistance at 49,300 on May 24.
For Friday's trade, Prashanth Tapse, Senior VP (Research), Mehta Equities said, GIFT Nifty is facing bearish pressure this Friday morning, opening at 22960, down by 55 points. Yesterday, Nifty neared the 23,000 mark, driven by investor optimism about the current regime's continuation in the upcoming general elections. However, Wall Street's decline due to a hotter-than-expected manufacturing survey and concerns over the Federal Reserve's interest rate decisions have dampened market sentiments.
Mehta added, that with the India VIX rising above 21, indicating increased volatility, the strategy is to stay nimble. Nifty's key support is at 22507. Recommended trades are to sell Nifty at 22968 with a target of 22507 and Bank Nifty at 48769 with a target of 48300.
Consider buying PATEL ENGINEERING at CMP 65 for targets of 79 and 89, as a momentum play.
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