1st Trade Call of 2024: 2 Technical Stock Picks By Sumeet Bagadia On Monday, Jan 1

In the midst of all the instability and volatility across the globe, India's robust economy proved to be a compelling story for the Indian and global equity markets in 2023. The Indian market performed well in 2023, yielding gains of 18% and 19% for the Sensex and Nifty, respectively. With the Nifty Midcap 100 and Nifty Small Cap 100 generating outstanding gains of 44% and 53%, respectively, the frontline index was surpassed by the broader market. A notable upswing was witnessed in 2023, marked by spectacular gains in every sector, with the real estate index continuing to be the best performer with an astounding gain of 75%.

Market Outlook

Neeraj Chadawar, Head of Quant Strategy, Axis Securities said, "The Indian economy continues to be a 'star performing' economy as against other emerging markets. Moreover, we firmly believe that it is likely to continue its growth momentum in 2024 and remain the land of stability against the backdrop of a volatile global economy.

The majority of the high- frequency indicators are trending upwards and the uptick from the pre-Covid levels is visible, indicating the resilience of the Indian economy. On top of it, the macroeconomic scenario has changed in favour of the equity market in the last one month and multiple indicators are now indicating a positive start for 2024. It is also noteworthy that the US bond yields witnessed a correction of 110bps from its peak in the last one month, which is further supporting the rally."

"Overall, the country's macro set-up is positive. The fundamentals of Indian corporates have improved significantly and so has the profitability across the board. This can be seen in the cumulative and rolling net profit of the NSE 500 universe for the last 4 quarters (till Q2FY24), which crossed the Rs 12 Lc Cr mark. Moreover, after a muted performance for several years, the ROE of the broader market is improving as well.

The bolstered balance sheet strength of corporate India and the significantly enhanced health of the Indian banking system are additional positive factors. These elements are poised to facilitate Indian equities in achieving double-digit returns over the next 2-3 years, supported by robust double-digit earnings growth. We foresee Nifty earnings to post 14% CAGR growth over FY23-26. In our base case, we foresee the Dec'24 Nifty Target at 23,000. For our base case, we assume the continuation of the political stability and consequent visibility on the policy continuity after the 2024 General Elections," he further added.

Stocks To Buy Today

On January 1, 2024, Monday, the executive director of Choice Broking, Sumeet Bagadia, suggested purchasing two stocks. The following are the entry price, stop loss, and target price for Tata Power and UNO Minda.

UNO Minda

Buy UNOMINDA in cash @ Rs 689, stop-loss: Rs 671, target: Rs 708

UNOMINDA daily chart analysis reveals a notable shift in market dynamics, transitioning from a period of minor declines and sideways consolidation to a promising upside bounce. The current trading session reflects an up move, potentially signalling an upside breakout from a narrow range momentum. This development aligns with a positive short-term trend, further reinforced by a surge in trading volume.

Key technical indicators, such as the Relative Strength Index (RSI) at 66, underscore the stock's positive momentum. The RSI not only exhibits positive signals but the stock is also trading above crucial moving averages-specifically, the 20-day, 50-day, and 100-day Exponential Moving Averages (EMA). This convergence suggests sustained strength in UNOMINDA price action.

Based on the above analysis we recommend buying UNOMINDA in cash at CMP of 689 for the target of 708 with a stop loss of 671.

Tata Power

Buy TATAPOWER in cash @ Rs 332.15, stop-loss @ Rs 322, target @ Rs 347

TATAPOWER is positioned at 332.15 levels in the market. The stock exhibits a robust support zone around 322 levels, which aligns closely with its 20-day Exponential Moving Average (EMA). Significantly, TATAPOWER is trading above all key moving averages, signalling inherent strength and positive momentum.

The momentum indicator, Relative Strength Index (RSI), is noteworthy, currently hovering around 67 levels. This suggests a favourable momentum in the stock. A slight resistance is observed near 338 levels, and a successful breach of this resistance could potentially propel the stock towards the target price of 347 and beyond.

In summary, the technical parameters, including strong support, moving averages, and RSI, collectively indicate a positive outlook for TATAPOWER, with potential upward movements anticipated in the near term.

Based on the above analysis we recommend buying TATAPOWER at CMP of 332.15 levels, for a target of 347 with a stop loss of 322.

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.