Amid the wild swings in the Indian stock markets, domestic brokerage firm SMC Global Securities has suggested four stocks- State Bank of India (SBI), Welspun Corp, ICICI Lombard General Insurance Company and Jindal Steel & Power (JSPL) - to bet amid the scarce opportunities to make money. The brokerage has picked the former two based on their sound fundamentals, while the latter two appear to be strong on the technical parameters. Here's what the brokerage has to say about these counters:
ICICI Lombard General Insurance Company | Buy | Target Price: Rs 2,175-2,180 | Stop Loss: Rs 1,850
ICICI Lombard GIC witnessed a series of decline and drifted towards Rs 1,800 level to take support at its 200-days EMAs on daily charts after marking its 52 week high of Rs 2,301.90 in the month of September. Technically, the stock has formed an inverted head & shoulder pattern and has managed to give a fresh breakout above the neckline of the pattern formation. Therefore, one can accumulate the stock in the range of Rs 1,975-1,990 levels for the expected upside of Rs 2,175-2,180 levels with stop loss below Rs 1,850 levels.
State Bank of India | Buy | Target Price: Rs 999 | Upside: 16%
SBI, the largest state-run lender, reported a 12 per cent YoY growth in business to Rs 9.03 lakh crore in the September 2024 quarter. Its net interest margin reduced by 16 bps to 3.27 per cent, while net interest income rose 5.37 per cent to Rs 41.620 crore in Q2FY25. The bank has delivered significant growth in business and improvement in assets quality and Q2FY25 , results of the bank highlight continuity, consistency and significant long-term strengths. The bank has remained focused on strengthening the key components that contribute to sustainable value. It has prioritized liability franchise and the refined processes continue to improve underwriting standards. Thus, it is expected that the stock may see a price target of Rs 999 in 8 to 10 months.
Jindal Steel & Power | Buy | Target Price: Rs 1,095-1,100 | Stop Loss: Rs 910
Jindal Steel & Power has been maintaining its downtrend as prices can be seen drifting well below its 200 day exponential moving average on daily charts after forming double top patterns around Rs 1080 levels on the broader charts. However, a sharp recovery has been witnessed thereon as the stock has given a fresh breakout above the ascending triangle pattern to once again regaining a momentum above its key hurdle of 980. Rising volume with positive price action suggests further upside into a stock. Therefore, one can accumulate the stock in the range of Rs 980-990 levels for the upside target of Rs 1,095-1,100 levels with stop loss below Rs 910 levels.
Welspun Corp | Buy | Target Price: Rs 895 | Upside: 14%
Welspun Corp is into Pipe Solutions and Building Materials, has undertaken some of the most challenging projects around the world, namely, the world’s deepest pipeline, the world’s heaviest pipeline, and the world's longest pipeline, among others. WCL has forayed into a state-of-the-art Greenfield facility at Anjar, Gujarat to manufacture Ductile Iron (DI) Pipes with a total production capacity of 500,000 MT per annum. The company has an order book and robust order pipeline backed by ramping up oil and gas production in US, India and Saudi. Its acquisition of Sintex, the water tanks and home building products manufacturer is part of its diversification strategy and its capex plan of Rs.2,500 crore to expand Sintex's offerings in the pipes and building materials business augurs well for the company. Thus, it is expected that the stock may see a price target of Rs 895 in 8 to 10 months.