Trade Call: 3 Stock Picks By Siddhartha Khemka of Motilal Oswal On Tuesday, 14th May

Domestic inflation fell to an 11-month low, stable global market ahead of US inflation data to be released tomorrow, impressive quarterly results and hope of favourable outcome in the Lok Sabha election result may open domestic bourses on a positive note. Gift Nifty is up by 50 points. India Vix soared by 11% to close above the 20 levels while it has touched a 19-month high of above 21 zones. Metal stocks may be positive due to copper price on LME nearly 2-year high. Momentum on mid-cap and small-cap stocks ahead of MSCI rebalancing today is expected, said Siddhartha Khemka Head - Retail Research at Motilal Oswal.

NIFTY Prediction Today

"Nifty immediate support at 21950 then 21800 zones while resistance at 22222 then 22350 zones. Now it has to hold above 22050 zones for a bounce towards 22222 then 22350 zones whereas supports are placed at 21950 then 21800 zones," said the analyst.

Bank Nifty Prediction Today

"Bank Nifty support at 47500 then 47250 zones while resistance at 48250 then 48500 zones. Now it has to cross and hold above 47777 zones for a bounce towards 48250 then 48500 zones while on the downside support is seen at 47500 then 47250 levels," stated Siddhartha Khemka.

Stocks To Buy Today

Siddhartha Khemka Head - Retail Research at Motilal Oswal has recommended 3-day trading stocks to buy or sell on Tuesday, 14th May.

ICICI Bank

Buy at CMP: Rs 1128, stop-loss: Rs 1105, target: Rs 1180, duration: 2-3 days

ICICI Bank is in overall uptrend and holding gains at higher levels. It has retested breakout on daily scale and inching higher. It has formed a strong bullish candle on daily chart and trading above its short term moving averages. Momentum indicator Relative Strength Index (RSI) is on the verge of Bullish crossover which indicates momentum to pick up in coming sessions.

Varun Beverages

Buy at CMP: Rs 1477, target: Rs 1720, 16% upside, Buy

VBL reported a revenue growth of 11% YoY in 1QCY24, led by volume growth (up 7% YoY) and high realization (up 4% YoY to INR180/case). EBITDA margins expanded 240bp YoY, led by improved gross margins (up 390bp YoY). Adj. PAT grew 25% YoY to INR5.4b (est. INR4.8b), driven by higher sales growth and improvement in margins. VBL expects strong sales growth in 2QCY24, led by heat waves, elections, and a lower base. We expect VBL to maintain its earnings momentum, aided by: 1) increased penetration in newly acquired territories in India and Africa, 2) higher acceptance of newly launched products, 3) continued expansion in capacity and distribution reach, 4) growing refrigeration in rural and semi-rural areas, and 5) a scale-up in international operations, said Siddhartha Khemka,

Hindalco

Buy at CMP: Rs634, target price: Rs670, Buy

Hindalco subsidiary Novelis files registration statement with SEC for upcoming IPO. Novelis Inc. hopes to complete the IPO offering as early as June. It could begin formally marketing the public issue in about two weeks. Novelis 4QFY24 APAT stood at USD243m (+23% YoY/+25% QoQ), slightly higher than our est. of USD211m. HNDL has undertaken a mammoth ~USD6b (revised upwards from USD4.6b) multi locational-multi product growth capex over a period of the next five years. Around 85% of the total capex is earmarked for Novelis, stated 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.