From RIL To Maruti: 3 Trade Calls By Siddhartha Khemka Of Motilal Oswal - Thursday

Despite a boost in inflation, the Federal Reserve kept the benchmark interest rates unchanged at 5.25 per cent - 5.50 per cent for the fifth straight meeting this year 2024, which may aid the Indian stock market opening smoothly. Furthermore, the US Fed announced that it has raised its forecast for economic growth in 2024 from 1.4% to 2.1%. The GIFT Nifty is now trading higher, while the India Vix dropped about 5% to close below the 14 level yesterday, which indicates positive start for the market on Thursday. Concerning the global market, Asian markets are now trading 0.5-1% higher, while European markets experienced a mixed session.

Global rating agency, S&P revised India's economic growth to 6.8% for FY25 from 6.5% and strong domestic economy data will be positive for the market sentiment. Expects positive for auto, metal, IT, infra, PSU and cement stocks, said Siddhartha Khemka Head - Retail Research at Motilal Oswal.

Nifty Outlook

Nifty immediate support at 21700 then 21515 zones while resistance at 22000 then 22122 zones. Now till it holds below 21880 zones, weakness could be seen towards 21700 then 21515 zones whereas hurdles are placed at 22000 then 22122 levels, said Siddhartha Khemka.

Bank Nifty Outlook

Bank Nifty support at 46000 then 45750 zones while resistance at 46750 then 47000 zones. Now till it holds below 46750 zones weakness could be seen towards 46000 then 45750 levels while on the upside hurdle is seen 46750 then 47000 zones, the analyst further added.

Stocks To Buy Today

Siddhartha Khemka Head - Retail Research at Motilal Oswal has recommended 3 stocks to buy on Thursday, 21st March.

Maruti

Buy at CMP: 11941, stop-loss: 11650, target: 12500, duration: 2-3 days

Maruti is in clean uptrend and gave a range breakout on daily chart. It is perfectly respecting 20 DEMA and formed a strong bullish candle on daily scale which has bullish implications.

Smart recovery is visible across Auto space which may support the ongoing up move. Momentum indicator Relative Strength Index (RSI) is positively placed which my take the prices higher.

Reliance Industries

CMP: Rs 2888, TP: Rs 3210, 11% upside, Buy

The Ministry of New and Renewable Energy (MNRE) recently announced its plans to (1) set up two hydrogen hubs in India by FY26, and (2) provide incentives up to INR44.4b for electrolyzer manufacturing through a second tranche. These initiatives also align with RIL's plans to establish a Giga-scale electrolyzer manufacturing facility. Additionally, O2C earnings in 4QFY24 should remain robust, given sharp recovery in SG GRM to USD 7.4/bbl (3QFY24: USD 5.5/bbl) even as key petchem spreads over naphtha are stable on a QoQ basis. Wereiterate our BUY rating on the stock with a TP of INR3,210, said Siddhartha Khemka.

Cummins India

CMP: Rs 2794, TP: Rs 2910, Buy

Our channel checks with genset players indicate that demand is fairly strong across key segments and that players are ready for the emission shift. Inventory levels for CPCB 2 based gensets will start coming down from Apr'24 onward as production for CPCB 2based gensets has already stopped. Cummins India's 3QFY24 results exceeded our and consensus estimates, with YoY growth of 16%/30%/27% in revenue/EBITDA/PAT. We remain positive on Cummins considering 1) long-term demand drivers for the powergen segment, 2) its readiness for emission norm transition with a strong product portfolio, and 3) its ability to sustain margins, commented Siddhartha Khemka Head - Retail Research.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.