Nifty: 50 DMA Acts As Laxman Rekha

Author

Yash Upadhyaya
March 18, 2024

Tale of the Tape 

Hey guys. Welcome back to the Daily Rip! 👋

Nifty and Sensex swung from one end to another before closing flat. However, midcaps (-0.4%) and Smallcaps (-0.6%) weren’t soo lucky. The advance-decline ratio was evenly split. ⚔️

It was a mixed-bag kinda day for sectors. Metals (+2.5%) and Auto (+1.3%) were the two big winners. IT (-1.6%) and FMCG (-0.5%) stocks saw selling pressure. 📉

These 11 stocks could more than DOUBLE in the next five years. Read our top story below to find out more. 🚀

Looking for some tax-saving tips before March 31? We check out Mirae Asset’s ELSS fund below. 💯

Steel stocks were on fire, with Tata Steel (+5%) being the top Nifty winner. More details below on what set them ablaze. 🔥

Coforge (-7%) was the top loser on the NSE 500 after it said it would raise Rs 3,200 cr via the QIP route. 👎

LIC slipped -2% after approving a 17% wage hike across the board. 🙈

Hudco (-4%) was in focus; its board will consider approving an interim dividend + a Rs 40,000 cr fundraise on March 20. 👀

Anup Engineering jumped 16% after it said it would consider issuing bonus shares on March 20. ✌️

Order wins. KPI Green Energy was locked in a 5% upper circuit after winning a 100 MW solar power project in Maharashtra. HAL (+1%) gained after bagging a Rs 2,980 cr order from the defence ministry. 💰

Here are the closing prints: 

Nifty

22,056

+0.15%

Sensex

72,748

+0.14%

Bank Nifty

46,576

-0.04%

Market
Market Ma Su Levanu?

Jefferies is BIG TIME bullish on India. They believe India will be the 3rd largest economy by 2027. Focus on infrastructure development, a large young population and improved governance will be the key factors driving this growth. 📊

The biggest positive trigger though? While India’s market cap is the fifth biggest globally, its weight in global indices is still at 1.6% (or 10th rank). As free float goes up, India will become IMPOSSIBLE for large foreign investors to ignore by 2030. With that in mind, here are Jefferies’s top picks for the next 5 years. 🚀

1) Macrotech Developers: The real estate firm is well poised to ride India’s housing cycle which kicked off over the last two years. FYI - India’s property cycles tend to last 6-8 years, which means we’ve another 4-5 years to go in the current upcycle. Beyond this, inventory is currently at a 12-YEAR-LOW. Also, Lodha’s big 600 m sf+ township land bank in Mumbai's suburbs could end up being a gold mine. FYI - Jefferies expects the stock to TRIPLE to Rs 3,000 p/sh in the next five years. 🤑

2) Amber Enterprises: In the last two years, the firm has diversified into broader electrical components. Fun fact: its mobile & electronics vertical now accounts for nearly 30% of total sales. It is also expected to be a BIG winner of the GOI’s PLI scheme. That said, its core AC biz is still strong with a big growth runway (India penetration at 7% vs global avg of 30%). Jefferies has a 5-year target price of Rs 9,740 p/sh; 2.9x from current levels! 💰

3) Axis Bank: Private lenders aren’t really hot stuff right now. So what’s popping for Axis? Firstly, it’s starting to gain a LOT of high-quality deposits. Nearly 1 in 3 of India’s richest families bank with Axis Bank’s wealth management platform. Other key profit levers include its acquisition of Citibank’s retail biz. The deal has taken some time to digest, but it's helped premiumise its balance sheet, improve the CASA ratio and catch up on the credit card front. FYI - Jefferies sees the stock jumping 2.7x in the next five years. 🙌

PS - Here’s a list of some other stocks along with their upside potential (in times):

  • Max Healthcare (+2.7x), 

  • Zomato (+2.5x),  

  • SBI (+2.5x), 

  • TVS motors (+2.4x), 

  • JSW Energy (+2.2x), 

  • Bharti Airtel (+2.1x), 

  • Ambuja Cement (+2.1x)

  • L&T (+2.1x).

Specials

Defence Stocks To Buy - By SEBI RAs

Defense stocks are never out of action. With the government increasing spending in the Defence sector, several stocks are poised to benefit. 🚀

Wondering which stocks to buy? Check out our latest video where we discuss 5 trade ideas on Defence stocks by SEBI RAs. 👇🏻

Sponsored

Be A Pro At Tax Saving

It’s that time of year again, folks! Tax season is here and we’ve got weeks to save what we can. It’s also a good time to plan how to start the new year, so you don’t scramble at the end of next year. 😎

FYI - ELSS mutual funds are the BEST way to tap into markets while saving tax under Section 80C of the Indian Income Tax Act. They come with a three-year lock-in period. Deductions under 80C are fully exempt up to Rs 1.5 lakh per year. Most importantly: ELSS funds are like any other equity mutual funds. This means that they help you save tax AND generate returns over the long term!! 💸

Today, we’re looking at Mirae Asset ELSS Tax Saver Fund. Some quick deets first. The fund’s minimum initial investment is Rs 500. Its net AUM (assets under management) is Rs 21,301.58 cr. The fund has usually maintained 65%-75% in large caps, 10%-20% in midcaps and 5%-10% in smallcaps. The fund’s top five holdings currently are: HDFC Bank, ICICI Bank, State Bank of India, Infosys and Reliance. For complete portfolio of the scheme, please visit the website https://www.miraeassetmf.co.in/downloads/portfolio 💯

But what you really want to know is: what do the returns look like? The fund has generated a CAGR of 17.64%, 20.05%, and 18.79% in the last 3 years, 5 years and since inception of the fund. Similarly, if someone had invested through the SIP mode, the XIRR would have been 18.74%, 21.41% and 18.89% in the past 3 years, 5 years and since the inception of the fund. This means a Rs 10,000 monthly SIP for 3 years would’ve become Rs 4.74 lakh after the expiry of the lock-in period. 😇

Past Performance may or may not be sustained in future.

Investors understand that their principal will be at Very High Risk. For other details, product label/riskometer and disclaimer: https://www.miraeassetmf.co.in/mutual-fund-scheme/equity-fund/mirae-asset-elss-tax-saver-fund Invest Now!

Mutual fund investments are subject to market risks, read all scheme-related documents carefully.

Chartbusters

Steel stocks were on a ROLL today! Tata Steel (+5%) was the top gainer on Nifty. APL Apollo and Jindal Steel also gained ~6%. Here’s why? PS - Pay attention, cause this is a little complex. 🤓

Firstly, China’s industrial output has been growing well. This is good because it means steel demand will go up, which means steel prices will go up. Secondly, new data also shows that China’s steel production is muted. Put simply: it's not keeping pace with broader industry growth. This is good for Indian exports and also global iron ore prices! ✅

Overall, a double boost for Indian steel, which tbh has needed it. ICYMI - the Nifty metal index was the WORST-PERFORMING index in 2023. Check out their charts below: 📈

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