Trade Call: 3 Stock Picks By Chandan Taparia of Motilal Oswal On Monday, 15th Jan

During the Friday session, Nifty reached a new all-time high of 21928 levels, and it ended the day with respectable gains of 247 points (+1.1%) at 21894 levels. Shares in Asia advanced ahead of an expected cut to China's 1-year medium-term lending facility and in the wake of Taiwan's election at the weekend. European stocks rallied Friday, led by gains in media and industrials sectors, and reassured by European Central Bank President Christine Lagarde saying interest rates will fall once inflation is under control. Oil prices climbed 2% to $79/bbl after US and UK forces launched strikes against Iran-backed Huthi rebels, while global stocks were mixed following the kickoff of corporate earnings season, said Chandan Taparia, CMT, CFTe Derivatives & Technical Analyst at Motilal Oswal.

Nifty Outlook

Nifty immediate support at 21650 then 21450 zones while resistance at 22000 then 22222 zones. Now it has to hold above 21800 zones, for an up move towards 22000 then 22222 zones while on the downside support exists at 21650 and 21450 zones, according to the analyst.

Bank Nifty Outlook

Bank Nifty support at 47250 then 47000 zones while resistance at 48000 then 48250 zones. Now till it holds above 47500 zones, momentum can be seen towards 48000 then 48250 zones while on the downside support is seen at 47250 then 47000 levels, said Chandan Taparia.

Stocks To Buy Today

On Monday, January 15, three stocks have been advised for purchase by Chandan Taparia, CMT, CFTe Derivatives & Technical Analyst at Motilal Oswal.

TVS Motors

Buy at CMP of Rs 2085, SL: Rs 2040, target: Rs 2170, duration: 2-3 days

TVS Motors have given triangle breakout on daily chart and holding well above the same. It is perfectly respecting 20 DEMA and inching higher. Buying is visible across Auto space which may take the prices higher. Momentum indicator RSI is positively placed which has bullish implications.

HCL Tech

CMP: Rs 1541, TP: Rs 1880, 22% Upside, Buy

HCL Technologies (HCLT) delivered a robust 3QFY24 performance, with a 6.0% QoQ revenue growth in constant currency (CC) terms, ahead of our estimate of +4.4%. This growth was driven by seasonal gains in HCL Software (P&P), which rose 34% QoQ. HCLT's Services grew 3.1% QoQ in CC terms, with healthy growth in both the IT & ER&D verticals. HCLT narrowed its FY24 USD revenue growth guidance to 5.0%-5.5% YoY in CC (vs. 5.0-6.0% YoY earlier, including ASAP) for both consolidated and Services segment. It retained its EBIT margin guidance band of 18-19%. However, the implied 4Q guidance for the Services vertical indicates that it will grow next quarter despite lower deal wins and a high base.

Tata Consumer

CMP: Rs 1159, TP: Rs 1330, Upside 15%, Buy

TATACONs has acquired 100% equity stake in Capital Foods Pvt. Ltd ('Ching's Secret' & 'Smith & Jones' brands) & Organic India Pvt Ltd (a 'better for you' organic brand) for total consideration of INR70b. Capital Foods is the market leader of Desi Chinese products in India with an estimated revenue of ~INR7.5b in FY24 (accounting for ~5% of the incremental revenue in FY24E), while Organic India products span across Food & Beverages and Herbal & Traditional Supplements with an estimated revenue of INR3.6b in FY24 (accounting for ~2.4% of the incremental revenue in FY24E). The acquisition is expected to be EPS accretive for the company from the third year of operations. It has been executed at industry-standard valuations, with Capital Foods/Organic India acquisition valued at ~6.8x/5.2x EV/sales on FY24E sales vs. ~6.4x for TATACONS.

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.