Independence Day Pick: Sumeet Bagadia of Choice Broking Recommends This LIC-Backed Stock To Buy

In spite of negative global signals, the Indian market indices Sensex and Nifty ended the day flat. The Nifty50 gained 6.25 points, or 0.03%, to settle at 19,434.55 while the Sensex closed 79.27 points, or 0.12%, higher at 65,401.92. The National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) will be closed on August 15, 2023, which is today, in observance of the 77th Independence Day.

Stock Market Performance Since The Last 76th Independence Day

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said, "Since the last Independence Day Nifty is up 9.6%. The broader market has outperformed significantly. Nifty Small-cap is up 23.68% and Nifty Mid-cap is up 22.46 %. There are big variations in sectoral performances with Nifty FMCG leading with 21.23 % gain followed by Nifty Realty with 19.03 % gain, Nifty Pharma with 18.75% gain, Nifty Auto with 18.49% gain and Nifty Bank with 12.85% gain. The laggard is Nifty IT with a mere 3.52% gain."

S Ranganathan, Head of Research at LKP Securities said, "It has indeed been a tremendous ride for our Equity Markets from last Independence Day to this Independence Day when one considers the fact that Domestic Investors took the FII Bears by the Horn for the First 8 Months before the latter started their Buying into India. While the Benchmark Indices itself moved up only 10% during this one year period, the PSU Index rose over 30% during this period with individual stocks across sectors rising over 100%."

"During this period we have seen a rise in the number of Indians taking up Entrepreneurship and several Startups have emerged across sectors. Demographic Advantage and GOI thrust on - Make in India coupled with the PLI schemes have made their presence felt," stated S Ranganathan.

Market Outlook On 77th Independence Day

"Globally, the U.S. soft landing narrative supported the markets by lifting the mother market US and most other markets. Domestically, the strength of the Indian economy and the huge FPI inflows during the last three months helped the rally. We are moderately optimistic about the market for the next one year. Investors can expect around 15% returns in the next one year with the bulk of the returns coming in early 2024. We are bullish on capital goods, autos and auto components, pharmaceuticals and construction-related segments," said V K Vijayakumar.

"As India lays the foundation for -Amrit Kaal, the PSU companies in our view would start winning both -Heart and Mind of domestic investors. While many of them have given good returns during this period with the PSU Index itself returning 30%, we believe that value creation shall unfold in these companies by the same time next year," said S Ranganathan.

Independence Day Stock Picks

Sumeet Bagadia, Executive Director of Choice Broking has rated Voltas with a 'BUY' rating as an Independence Day pick.

Voltas

Buy Voltas @ Rs 820 & Upto Rs 800 for the Target of Rs 905/ 934

On a monthly chart, the stock has bounced back from the previous support zone, concluding distribution phase is over. Additionally, the stock is trading above 800 which was its previous resistance level on the weekly chart. Also, the price is sustaining above the middle line of the Bollinger band, indicating the stock's strength.

The daily chart's RSI Indicator is trading near 60 levels, which suggests that the stock could inch higher in the coming days.

Additionally, the stock is up against a downward-sloping trend line resistance and may break out above 850 levels, which might push it towards 900 and above in the coming weeks.

So based on the above technical structure, we are recommending a buy position in the stock for the medium to long term, said Sumeet Bagadia.

Voltas Share Price

On Monday, the shares of Voltas closed on the BSE at Rs 825.20 apiece down by 0.42% from the previous close of Rs 828.65. The stock made a 52-week-high of Rs 1,050.55 on (19/08/2022) and a 52-week-low of Rs 737.60 on (27/01/2023). During Q1FY24, the company recorded promoters shareholding of 30.30%, FIIs stake of 19.08%, DIIs stake of 33.63%, Govt stake of 0.21% and public stake of 16.78%. As per the shareholding pattern of Voltas for June 2023 quarter, insurance giant Life Insurance Corporation of India (LIC) held 3,39,03,563 shares or 10.25% fully paid-up equity stake in the company.

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.