Trade Call: 3 Stock Picks By Chandan Taparia of Motilal Oswal On Tuesday, 23rd Jan

Impressive quarterly results announced by ICICI Bank, record high closing both in Dow Jones & US S&P 500 Index, hope of US Fed to cut interest rate in March and cooling down US 10-Year bond Yield from 1- month high, may open domestic equity market on a positive note.

Asian shares rose after US stocks eked out small gains to close at fresh records, with all eyes on Chinese markets' reaction to Beijing's latest pledge to arrest a stock rout and the Bank of Japan's policy decision. Japan, South Korea and Taiwan Index gained up to 0.5%.

The focus will remain today on Q3 results of Axis Bank, Pidilite, REC, Havells and United Spirits and Bank of Japan interest rate decision as well as US GDP data today, said Chandan Taparia, CMT, CFTe Derivatives & Technical Analyst at Motilal Oswal.

Nifty Outlook

Nifty immediate support at 21500 then 21400 zones while resistance at 21750 then 21850 zones. Now it has to hold above 21550 zones for an up move towards 21750 and 21850 zones while on the downside support exists at 21500 and 21400 zones, said the analyst.

Bank Nifty Outlook

Bank Nifty support at 45650 then 45400 zones while resistance at 46250 then 46500 zones. Now till it holds below 46200 zones more weakness could be seen towards 45650 then 45400 zones while on the upside hurdle is seen at 46200 then 46500 levels, said Chandan Taparia.

Stocks To Buy Today

On Tuesday, 23rd January, Chandan Taparia, CMT, CFTe Derivatives & Technical Analyst at Motilal Oswal recommended the below stocks to buy or sell.

Coal India

Buy at CMP of Rs 399, stop-loss: Rs 390, target: Rs 420, duration: 2-3 days

Coal India gave a consolidation breakout on daily scale after fourteen sessions and formed a strong bullish candle. On weekly scale as well the structure of higher highs higher lows is intact and supports are gradually shifting higher.
The stock is holding well above its 20 DEMA from past many sessions and Momentum indicator Relative Strength Index (RSI) is also turning higher which indicates strength in the stock. Stock has been outperformer within CPSE space and all set to test higher levels.

ICICI Bank

CMP: Rs 1008, TP: Rs 1230, 22% Upside, Buy

ICICI Bank reported a strong performance in 3QFY24, with 24% YoY growth in net earnings (inline) despite making AIF provisions of INR6.3b. NIMs contracted 10bp QoQ to 4.43% (better than estimate).

Credit growth was healthy at 19% YoY/4% QoQ, led by continued traction in Retail, SME and BB segments. Deposit growth was also steady at 19% YoY/2.9% QoQ.

On the asset quality side, slippages were slightly elevated amid seasonally higher slippages from the Kisan Credit Card (KCC) segment. GNPA ratio decreased 18bp QoQ while NNPA remained largely flat. We expect ICICIBC to deliver RoA/RoE of 2.3%/18.3% in FY25, said Chandan Taparia.

Cipla

CMP: Rs 1313, TP: Rs 1540, Upside 22%, Buy

Cipla 3QFY24 revenues increased 13.7% YoY to INR66bn (our est INR64.8bn). DF sales (43% of sales) grew 11.5% YoY to INR28.6b.

US sales (29% of sales) grew by 19.8% YoY to INR19b. Growth was supported by volume traction in key assets of Lanreotide and Albuterol coupled with robust demand in base business.

EBITDA margins expanded 220bp YoY to 26.5% (our est 24%), due to lower raw material & employee cost and other expenses. EBITDA increased by 24.2% YoY to INR17.5bn (our est. INR15.5bn).

After adjusting for impairment charges and forex gain of INR1.4b, PAT grew 49.4% to INR12b (our est INR9.7b) due to higher other income and lower depreciation, said the analyst.

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.