IndusInd Bank and Tata Motors remain the top recommendations on Stocktwits for the week

By RAs on Stocktwits

Nifty traded choppy last week, closing slightly up at less than a percent from 22200 to 22345. Despite volatility due to monthly expiry and MSCI rebalancing, a staggering GDP growth figure charmed the markets, leading to a recovery and a 1.6% up move on Nifty. Weekly volatility showcased resilience amid turbulence, reflecting the market’s response to economic indicators amidst ongoing global uncertainties.

We believe 21,200 is a crucial level for Nifty though we are far from there, we doubt the bull trend would change till we manage to stay above. PS: Bull market corrections are rough and swift so a wider range would ensure fewer trades and panic. Interestingly in most March months the markets have globally stayed choppy, which might warrant caution.

Stocks Recommendations:

IndusInd Bank by Bharat Sharma

Buying range 1500-1526 | Target 1600-1700+ | SL 1440

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Prices formed a triple bottom at the 1440 levels, very close to 200 EMA, which signifies the strong support exist there. Recently prices formed a Falling wedge, which has breached upside significantly. Prices also breached the immediate peak of 1515 & Closing above 20-50 EMA now further signifies the upward momentum resumes in this.

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Trade Setup : We can initiate a long position in this between 1500-1525 levels for the upside targets of 1600-1700+ in next 4-8 weeks with the stoploss at identified support of 1440

Tata Motors by Dr Nikhil Jain

CMP: 977.4 | Target: 1125 | Stop Loss: 844

With good earnings in the latest quarter, Tata Motors stock price has been in a strong momentum. On the daily timeframe, the stock has tested the breakout zone near 950 successfully. Both daily and weekly RSI are above 70, which makes this stock a high momentum stock and can lead to a sharp upmove. One can consider the stock at current market price with a Target of 1125 and a Stop Loss of 844.

Dr. Lal PathLabs by Mayank Mehraa

CMP- 2331 | SL- 2231 | Target- 3600

Lal PathLabs (LPL) is currently at 19.4k Cr, trades at a trailing 58x PE, which is lower than their median PE of 74.6x with a 23% Market Share. LPL experienced a significant surge in demand for diagnostic services during the COVID-19 pandemic. Since then, their revenue growth remained muted with margin pressure that led to a 7% CAGR in Profit Growth. Though the business isn’t cyclical, the Covid Pandemic did introduce a non- linear surge to its earnings.

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They have managed to maintain a 25% OPM through the past decade with revenue growth from 342 Cr in 2012 to 2172 Cr in 2023. As the emphasis on healthcare awareness and preventive screenings continues post-pandemic, LPL remains poised for sustained growth. With smaller healthcare players preferring to outsource their diagnostic and pathology testing needs, LPL’s established presence and ability to cater to this demand position it favourably in the market.

(Views expressed are author’s own. Please consult your financial advisor before investing.)

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