On September 13, Indian equity indices experienced a downward shift, with the Nifty closing below 25,350, indicating slight weakness in the market. Analyst Anuj Singhal from CNBC-Awaaz emphasizes the importance of staying aligned with the larger market trends, suggesting that investors who maintain a long position will ultimately reap rewards. As part of this strategy, it’s recommended to progressively raise the stop-loss (SL) levels. The updated trailing stop-loss for Nifty long positions has now been set at 25,250 (closing). Singhal maintains an optimistic outlook, projecting the Nifty to reach 26,000 during the current series and even target as high as 27,272 within the year. In light of this, he has identified several key stocks that are anticipated to exhibit significant volatility throughout the trading day.
Gold Finance Companies in Focus
Anuj has noted a resurgence in gold prices, with COMEX reaching an all-time high of $2,600. This surge is likely to impact gold finance companies positively, specifically Muthoot and Manappuram, which he suggests may see robust gains today. The growing prices of gold enhance the value of gold held as collateral, enabling these companies to increase their loan offerings due to an improved loan-to-value ratio.
LIC Housing and Canfin Homes Spotlight
Additionally, Anuj has indicated that LIC Housing and Canfin Homes deserve attention, especially following the anticipated listing of Bajaj Housing, expected to debut at over a 100% premium. While Bajaj’s growth prospects appear notably quicker, both LIC Housing and Canfin Homes are currently valued at significantly lower price-to-book ratios, presenting potential investment opportunities.
Macrotech: A Promising Investment
Singhal is particularly bullish on Macrotech’s stock, following a positive buy recommendation from Nomura, which has set a target price of ₹1,600. They project strong performance ahead, fueled by effective capital allocation strategies and a compound annual growth rate (CAGR) of 20% in pre-sales for FY25-26. As its Palava project anticipates substantial infrastructure upgrades, both volume and pricing are expected to see uplifting trends. Currently, the stock is trading at a valuation of 32x 2025 EV/EBITDA. However, investors should be cautious of risks, including a slowdown in India’s residential property market or delays in infrastructure development around Palava.
Concerns for Marico
On the contrary, Anuj expresses a bearish outlook on Marico’s stock in light of recent developments regarding custom duties. The increased duties on crude and refined oils—up from 13.75% to 35.75% for refined edible oils and from 0% to 20% for crude palm oil—are likely to exert negative pressure on Marico’s financials.
Conclusion
In summary, amidst the current market volatility, Anuj Singhal’s insights provide a roadmap for investors looking to navigate these changing waters. Aligning investment strategies with market trends, focusing on burgeoning sectors such as gold finance, and evaluating opportunities in housing finance are essential for maximizing potential gains. As always, investors are encouraged to seek additional advice from certified experts before making any financial decisions.
Disclaimer
The perspectives shared in this article are those of the experts and do not reflect the views of Moneycontrol or its management. It is strongly advised to consult with certified professionals prior to making any investment choices.
