The Indian market consistently remained in an uncharted territory as the benchmark indices ended at fresh record closing highs on October 13, outperforming its global peers. The BSE Sensex rallied over 450 points to close above 60,700 levels and the Nifty ended above 18,150 levels with 170 points gains.
Auto, IT, metals, FMCG and select banking and financial stocks along with Reliance Industries supported the rally. In the broader space, there was a mixed trend as the Nifty Midcap 100 clocked 1.5 percent gains, but Smallcap 100 index closed flat.
Stocks that were in focus include majority of Tata Group stocks after private equity firm TPG decided to invest Rs 7,500 crore in electric vehicle subsidiary of Tata Motors that hit the highest level (Rs 523.85) since February 2017 on Wednesday before closing the session with a massive 20.45 percent gain at Rs 506.90.
Tata Chemicals was another stock in the limelight, which touched a fresh record high of Rs 1,144.30 before closing 14.04 percent higher at Rs 1,107.10. It was the biggest gainer intraday and ended as third highest gainer in the F&O segment.
As a result of news in Tata Motors, Mahindra & Mahindra also joined the party, rising up to Rs 971.15 intraday, the highest level since September 2018, and finally settled at Rs 935.35, up 5.08 percent. Power equipment manufacturer BHEL also saw brisk buying, rising 8 percent to close at Rs 76.25, the highest closing level since June 2021.
Here’s what Gaurav Sharma of Globe Capital Markets, recommends investors should do with these stocks when the market resumes trading today:
Tata Motors
It is in a strong uptrend. In recent past, it is among the best performing auto stocks. It has rallied from Rs 325 to Rs 500 levels in just a couple of sessions. Considering such a steep up move, the possibility of some profit-taking cannot be ruled out.
Any dip from the current levels should be considered as a fresh buying opportunity, as we see the stock maintaining its upward bias in the short to medium term.
Existing shareholders can look for a target close to Rs 600 levels by November-end.
BHEL
It has performed exceptionally well in the recent past, rallied from Rs 53 to Rs 80 in just a couple of weeks.
As the stock has approached its resistance zone, some profit-taking is likely, but that would be a buying opportunity as its overall trend is quite positive and dips will be bought for as it is more likely to head towards Rs 90-95 levels by the year-end.
Mahindra & Mahindra
It is trading close to its life-time highs, crossover and sustenance above Rs 1,000 levels will trigger the next round of buying that can take the stock towards Rs 1,100-1,200 levels in the immediate near-term.
We advocate buying the stock once it surpasses the psychological resistance of Rs 1,000 levels.
Tata Chemicals
As stated in my previous post, it is among my favourite stocks at the moment.
I still uphold a bullish bias on this stock as I see it heading towards Rs 1,200 levels in the immediate near term and much higher levels close to Rs 1,500 are also possible if one holds it for medium to long term.
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