Whalesbook
India-US Trade Deal Boosts Market Sentiment
Equity benchmarks in India registered a notable recovery on February 2, climbing more than 1 percent after a preceding session of declines. The market's resurgence was significantly influenced by the United States' announcement of a reduction in tariffs on Indian exports, decreasing the rate from 50 percent to 18 percent. This trade agreement is seen as a critical catalyst, removing a major overhang for investors and potentially attracting renewed foreign capital inflows. The Positive sentiment generated by the deal, coupled with a commitment from New Delhi to increase imports from the US and reduce dependence on Russian oil, has reshaped market expectations. This has been particularly welcome news following recent market volatility, including a post-Budget sell-off.
Expert Stock Picks Amidst Optimism
Analysts have put forth several stock recommendations, emphasizing technical patterns and indicators suggesting upward potential. Aditya Thukral of AT Research & Risk Managers identified eClerx Services (CMP: ₹4,842.4) for its falling trendline breakout supported by rising volumes and RSI momentum, suggesting a target of ₹5,350 with a stop-loss at ₹4,549. Thukral also favored Acutaas Chemicals (CMP: ₹1,937.2), noting a box pattern breakout on high volumes, and set a target of ₹2,250 with a stop-loss of ₹1,780. For JK Tyre and Industries (CMP: ₹524.5), Thukral recommended buying on a breakout above ₹530, targeting ₹578 with a stop-loss at ₹506, citing consolidation and potential for upward momentum.
Arun Kumar Mantri of Mantri FinMart highlighted Blue Star (CMP: ₹1,838), observing it near strong support zones with signs of a breakout formation. He advised a buy strategy with a target of ₹1,995 and a stop-loss of ₹1,782. Jigar S Patel from Anand Rathi focused on Mahindra and Mahindra (CMP: ₹3,463.2), pointing to a strong rebound from its 200-day moving average, increased volumes, and bullish RSI divergence, with a target of ₹3,650 and stop-loss at ₹3,340. Patel also recommended Indian Oil Corporation (CMP: ₹164.6) due to a base near its 100-day EMA and a trendline breakout, setting a target of ₹172 and stop-loss at ₹159. Supreme Industries (CMP: ₹3,600.8) was also flagged by Patel, with a decisive close above the Williams Alligator indicator and a MACD bullish crossover, targeting ₹4,000 with a stop-loss at ₹3,350.
Vidnyan S Sawant of GEPL Capital presented Ashok Leyland (CMP: ₹194.4), noting its consistent positive trend above key EMAs and healthy pullback behavior, with a target of ₹214 and stop-loss at ₹186. Sawant also suggested Mangalore Refinery and Petrochemicals (CMP: ₹177.46), citing a bullish polarity shift and sustained strength above EMAs, with a target of ₹199 and stop-loss at ₹168. Finally, GE Vernova T&D India (CMP: ₹3,290.4) was recommended for its prolonged uptrend and recent range breakout attempt, with a target of ₹3,553 and stop-loss at ₹3,158.
Fundamental Context
Several of these recommended stocks operate in sectors that may benefit from improved trade relations and economic policy. Indian Oil Corporation (IOC) exhibits a P/E ratio around 9-16 and a substantial market capitalization of approximately ₹232,450 crore. Supreme Industries, a key player in plastic piping, shows a P/E in the range of 47-54 with a market cap near ₹45,759 crore. Ashok Leyland, a major commercial vehicle manufacturer, has a P/E between 31-42 and a market cap of around ₹114,188 crore. eClerx Services, in the IT services sector, trades at a P/E of approximately 33-38 with a market cap close to ₹22,173 crore. Acutaas Chemicals, in specialty chemicals, has a higher P/E range of 50-62 and a market cap around ₹15,968 crore. JK Tyre and Industries operates in the auto ancillary space with a P/E of roughly 26-27 and a market cap of approximately ₹15,121 crore. Mangalore Refinery and Petrochemicals has a P/E of 12-14 and a market cap of about ₹31,102 crore. GE Vernova T&D India has a significantly higher P/E ratio of 75-111 with a market cap around ₹84,251 crore.