Tata Steel, ITC, JSW Steel among top weekly picks of SMC Global; check target prices

Amid the rising volatility pressure in the Indian equity markets, domestic brokerage firm SMC Global Securities has suggested four stocks- ITC Ltd, JSW Steel Ltd, Tata Steel Ltd and Aavas Financiers Ltd- 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 based on their strong technical charts. Here's what the brokerage has to say about these counters:

Tata Steel | Buy | Target Price: Rs 169-170 | Stop Loss: Rs 135

Recently, Tata Steel took support at its 200 days exponential moving average (DEMA) on a weekly interval and recovered with a decent bounce into the prices. At the current stage, the stock can be seen holding well above its 200 days exponential moving average on daily charts with recovery seen within the formation of higher bottom patterns. Technically, the stock has given a breakout above the falling trend line of the declining channel on broader charts. The breakout got supported with rising volumes that points towards strength in the recovery. Therefore, one can accumulate a stock on dips in the range of 148-150 for the expected upside of 169-170 levels with stop loss below Rs 135 levels.

ITC | Buy | Target Price: Rs 484 | Upside: 18%

ITC is a diversified FMCG player with business spanning in hotels, paperboards and packaging, agribusiness and information technology. It has set up 8 units which include a foods facility, a moulded fibre factory for plant-based sustainable packaging and a unit for personal care products. Other recent investments include a global spices processing facility, a world-class packaging plant, an export-focused plant and 2 integrated consumer goods facilities. The company plans to invest Rs. 20,000 crore across various businesses in the medium term. It has expanded its food division by acquiring Prasuma. This acquisition would further fortify ITC’s presence in these future-facing categories. Its focus on digital transformation along with business expansion would help drive future growth with efficiency. Thus, it is expected that the stock may see a price target of Rs.484 in 8 to 10 months.

Aavas Financiers | Buy | Target Price: Rs 1,800-1,820 | Stop Loss: Rs 1,720

Aavas Financiers has been trading within a relatively wide range of Rs 1,630 to Rs 1,730 over the last six months, showing no significant upward or downward trend. During this period, the price has frequently oscillated around the 200-day exponential moving average (EMA) on daily charts. However, last week marked a notable shift in market dynamics. The stock broke out of this established range, surpassing the upper boundary of Rs 1,730 with increased trading volume. A breakout like this, particularly when accompanied by higher-than-average volume, typically signals a significant shift in market sentiment. Therefore, one can accumulate a stock on dips in range of Rs 1,800-1,820 for the expected upside of Rs 1,950-1975 levels with stop loss below Rs 1,720 levels

JSW Steel | Buy | Target Price: Rs 1,178 | Upside: 18%

JSW Steel is the flagship company of the JSW Group. Its manufacturing unit in Vijayanagar, Karnataka is the largest single location steel-producing facility in India. It has aggressively expanded into a global steel giant over the past three decades, with a consolidated crude steel capacity of 35.7 million tonnes per annum (MTPA), including 1.5 MTPA in the US. In the future, its domestic capacity of 32.5 MTPA is set to increase to 34.2 MTPA following the full commissioning of an expansion project at JSW Vijayanagar Metallics (JVML) in Karnataka. Looking ahead, JSW Steel also plans to boost its total capacity to 43.5 MTPA within the next three years. The company's Vijayanagar plant, currently India’s largest single location steel production facility, has a current capacity of 17.5 MTPA, including the under-commissioning expansion. It has a proven track record, and according to its management, the demand for steel in India remains robust, driving the prices of value-added products. Stable revenue, higher sales volumes, reduced input costs and effective cost-control measures are expected to strengthen its financial position. The completion of ongoing capital expenditure projects will boost production capacity. Management also highlights that the US economy continues to perform better than expected, with a positive outlook under the new administration. It is expected that the stock may see a price target of Rs 1,178 in 8 to10 months.