Sensex and Nifty have reached record highs due to the increasing confidence of investors towards the market. Since April 2020 last year, Dalal Street is continuously running according to the bulls, that is, the market remains bullish. In the meantime some corrections also happened but it remained for only a short time. If the market has once again reached a record high, then there is a possibility of a correction in it, so investors should be careful at this time. However, investors can get a chance to profit even in the midst of the market rally and brokerage and research firm ICICI Direct has expressed confidence in three stocks. The firm has found Tata Motors, Caplin Point Lab and Tata Metaliks to be fundamentally and technically sound as ‘Gladiator Stocks’.
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Tata Motors- Target Price: Rs 405 per share
There has been a tremendous recovery in the share price of Tata Motors from the low level of March 2020. At that time its shares had fallen to a price of Rs 64. Tata Motors may remain bullish in large cap auto stocks. Have made it a better high base around Rs.280. ICICI Direct has a buy call on Tata Motors shares at Rs 348-358 with a stop loss of Rs 324. According to the brokerage firm, its prices can jump up to 15 percent in the next three months.
According to the ICICI Direct report, Tata Motors recently broke the consolidation range of Rs 342-279 in the last four months and now it can reach the level of Rs 405. ICICI Direct has a buy call on Tata Motors shares at Rs 348-358 with a stop loss of Rs 324. According to the brokerage firm, its prices can jump up to 15 percent in the next three months.
Fundamentally speaking, Tata Motors is one of the leading domestic auto OEMs (Original Equipment Manufacturers) in the transformation of electrification. Apart from this, Tata Motors is the market leader in terms of domestic commercial vehicles. It is also ahead in the case of passenger trains.
Caplin Point Labs – Target Price: Rs 780 per share
Caplin Point Lab has performed well in the last few months and recovered in just three months from the decline it had seen in seven months. In the report of ICICI Direct, it has been estimated that it may continue to rise further and it may touch the level of Rs 780 in the coming few months. Earlier in August 2017, the record level was at Rs 785. According to the report, this stock has got support at Rs 598. The brokerage has given a buy call on Caplin Point in the range of 660-675 with a stop loss of Rs 598. It can give a return of 14 percent in the next three months.
Caplin Point has established itself in the semi-regulated market of Central America and is now one of the leading formulation suppliers here. Now it is also working on expansion plans in new markets of South America and America.
Tata Metaliks – Target Price: Rs 1,355 per share
The business in the metal space is once again booming and Tata Metaliks has crossed its three-year breakout zone and is now in a buying trend. This stock has got support at Rs 1020. The brokerage firm has advised to buy this stock in the range of Rs 1115-1140 with a stop loss of Rs 1020. According to the firm, its prices can increase by up to 15 percent in the next three months.
Tata Metaliks is a leading company in the field of flexible iron pipes and has a good balance sheet. It can give better returns due to healthy cash flow and strong return ratio profile (return on capital employed of 20 per cent).
(Article: Kshitij Bhargava)
Note: The stock recommendations given in the story are by the research and brokerage firm and Financial Express Online assumes no responsibility for this investment advice. Please consult your advisor before taking any investment decision.