Amit the rising volatility in the broader markets, domestic brokerage firm SMC Global Securities has suggested four stocks- L&T Finance Ltd, Hindustan Petroleum Corporation Ltd (HPCL), Zensar Technologies Ltd, National Aluminium Compnay Ltd (Nalco)- to bet amid the limited opportunities to make money. The brokerage has picked the former two based on their solid fundamental parameters, while the latter two appear to be sound on the technical parameters. Here's what the brokerage has to say about these counters:
L&T Finance | Buy | Target Price: Rs 237 | Upside: 27%
L&T Finance offers financing for two-wheelers, consumer goods, homes, farm equipment, women entrepreneurs, rural groups, real estate and infrastructure. It provides financing for small and medium enterprises through term loans and overdraft facilities. The company is focused on boosting customer acquisition by developing a strong sales funnel and expanding its product offerings. It is enhancing credit underwriting through its proprietary digital credit engine, 'Project Cyclops,' and building a forward-looking digital infrastructure to drive innovation. Additionally, the company is increasing brand visibility through greater market presence and strengthening its capabilities by recruiting and upskilling tech talent, all of which are contributing to its strong performance. Thus, it is expected that the stock will see a price target of Rs 237 in 8 to 10 months.
Hindustan Petroleum Corporation | Buy | Target Price: Rs 495-500 | Stop Loss: Rs 390
HPCL has marked its 52-week high of Rs 457.15 in month of September and since then trading lower with formation of lower high pattern on daily charts. Recently the stock managed to take support around 390 levels and bounced back once again to surpass above Rs 420 mark after forming a double bottom pattern. Technically, the stock has been maintaining its bullish move as prices are seen rising in formation of higher high and higher low patterns. The positive divergences on secondary oscillators along with rising price suggest net upswing into the stock. Therefore, one can buy the stock in range of Rs 430-435 for the upside target of Rs 495-500 levels with stop loss below Rs 390 levels.
Zensar Technologies | Buy | Target Price: Rs 834 | Upside: 24%
Zensar Tech is a globally focused software & services company spread across eighteen countries across the world. Zensar provides end–to–end services from IT development to Business Process Outsourcing, from consulting to implementation. The company is headquartered in Pune, India, and has over 10,300 associates working across more than 30 locations, including San Jose, Seattle, Princeton, Cape Town, London, Singapore, and Mexico City. The company has healthy order book and according to the management, the company continues to stay focused on execution, innovation and cost optimization to further maintain Zensar's financial performance achieved in the last few quarters. Focus on client centricity; execution excellence and a good pipeline represent sustained business growth. Thus, it is expected that the stock will see a price target of Rs.834 in 8 to 10 months.
National Aluminium Company | Buy | Target Price: Rs 225-230 | Stop Loss: Rs 175
Nalco has been maintaining its bull run and has seen rising in a mounting channel with formation of higher high and higher low patterns on daily charts. Last week, the stock also marked its 52-week high of Rs 212.40. Technically, the stock has given a fresh breakout above the symmetrical triangle pattern with prices seen holding well above its 200 days exponential moving average on daily charts. The rise in average volumes along with price action suggests further upside into the stock after a breakout. Therefore, one can buy the stock on dips in the range of 195-200 for the upside target of Rs 225-230 levels with stop loss below 175 levels.