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00:00Vaishali Parekh joining us on the show for Vice Specialist in Technical Research at PL Capital.
00:04And Vaishali, hi, morning. Good to be chatting with you today.
00:08And my colleague Sharad was just highlighting some of these auto names like Hyundai and Maruti Suzuki
00:12and how they've come out with commentary yesterday,
00:15saying that the sales on the day one of Navratri and the inquiry, they have been robust.
00:20How do you think both of these stocks are placed on the chart?
00:22Because auto is something, Nifty Auto particularly, where we've seen lots of action recently.
00:27Very good morning, all of you.
00:30So, I think, yes, auto sector has been outperforming.
00:32And yesterday with this positive data, I think even the two dealers, besides these two names,
00:37Maruti you spoke about and Hyundai, they're already in an upward trend.
00:41But I think there is a scope of further upside.
00:44So, one should, it's definitely not a fresh buy at this level.
00:47But to those who are holding, should continue holding with the trading stop loss.
00:52All right. Not a fresh buy recommendation at this point in time.
00:56But people can continue holding with the stop loss.
00:59That's the advice coming in on select auto counters.
01:02But Kunal, do you concur with that too?
01:03Because there has been a stellar run-up on Maruti as well as Hyundai.
01:07I'm sure that the other companies will also come out with such numbers.
01:12And of course, Mahindra is something that we will be watching out for
01:16because they generally make such headlines.
01:18But what's your take on the auto pack?
01:20Any of your preferred picks given the run-up?
01:23Yeah, I think, you know, we've been discussing that Maruti, I think, is one of the stronger performers.
01:28At least, it's emerged out to be a strong performer in the last three odd months.
01:32And that too, at a point where many of the, in the previous phases, you know, the stock was a huge underperformer.
01:37So, I think the moment the stock managed to break past about, I think, 12,000 mark, 11,800 thereabouts,
01:43you've seen a completely different texture coming out for a stock like Maruti.
01:46The stock has gone to a stronger degree of odd performance, leaving behind, you know, many of its other peers on the four-wheeler segment.
01:54So, I think, in that context, I would believe that Maruti continues to look attractive even at current levels.
01:59And then, over the last one week, 10 days, you've seen a phase where the auto stocks have just about gone through a minor corrective phase.
02:05Now, you know, after such a steep rally, when these stocks run up 10, 20, 30 percent, you know, short span of time,
02:11if you see these stocks going through a time-wise correction and not a major price correction,
02:15that itself is a strong indication that we are looking at a major uptrend coming back into these stock prices.
02:21And this time-wise consolidation is actually a good opportunity where longer-term traders could probably try to, you know, chip into these names.
02:28So, still bullish on many of these auto names from a medium to longer-term perspective.
02:31And specifically, after this kind of a breakout, which you've seen for the auto stocks in the last two-odd months back,
02:37I think that indicates that we are looking at a major uptrend for the auto names.
02:41So, not specific towards very few individual stocks, but then I think likes of Maruti, M&M, Isomotors, Ashok Leland, etc.
02:48I think these stocks are looking very attractive.
02:50Okay. So, that's the take coming in on the entire auto space from both Vaishali and Kunal.
02:54We also have Chakri Lokpreya, the Chief Investment Officer of Equities at LGT Wealth, joining us on the show.
02:59Chakri, hi. Morning. Thanks so much for your time today.
03:02I want to get your sense on some of these capital goods stocks like ABB India, UF Siemens,
03:08or, for instance, something like a CG power, LG equipment.
03:11My colleague was just highlighting about the impact that these stocks could see from the DGTR proposal on China for their electric steel.
03:19What do you have to make of this development?
03:21To what extent could this bring some cheer back to some of these names?
03:25Good morning. Thanks for having me.
03:27I think there are two or three things. One is when the GST was cut, there was an expectation that, you know,
03:32the amount that is going to be spent on the fiscal on capital goods would come down.
03:38But thankfully, there has been indications from the government that they will not cut that and CAPEX will be maintained.
03:43In fact, CAPEX will increase from that 11.4 lakh growth to some other number higher than that.
03:49So, against that backdrop now, I think the valuations are looking okay because the growth expectations have now come back to the sector,
03:56whether it's ABB or Siemens or some of the companies like Kalpatru or NCC.
04:01And moreover, you know, therefore, the demand for all the various allied services would also go up.
04:06All right. So, that's the take coming in on the CAPEX space.
04:11But, Chakri, along with that, just wanted to have your take on the metal pack as well.
04:15Because what we understand, even Namira is highlighting the fact that the China production cuts are getting more aggressive.
04:22That's been one of the stories that awfully it has been playing out for the Indian metal counters.
04:28And add to that is the steel safeguard duty as well.
04:31So, it's a kind of double bonanza coming in for the steel sector back home in India.
04:37But what is your sense, given the fact that the sector overall has underperformed so much,
04:43there were so many headwinds coming in on the sector.
04:46But do you see these factors really making something into the numbers as well?
04:52Are you bullish on the metal sector overall?
04:56You're absolutely right on many counts.
04:58You know, there are a few things going in India's favor and in terms of the metal sector.
05:03And one, for instance, China is getting production.
05:06Indian demand is increasing.
05:09Third, you know, companies like Tata Steel are expanding their capacities at a time when demand from India is strong.
05:15And three, you know, the safeguards that the Indian government has announced will help in producing some amount of pricing protection.
05:24So, against this whole backdrop, the whole company like Tata Steel or name it any other metal company,
05:29they're trading at very reasonable valuation of six to seven times.
05:32And they're underperformed.
05:34And so, I think, therefore, the upside, because, you know, the demand outlook looks good,
05:39I think it's worth buying into.
05:41Okay, so that's a call coming in on some of these steel stocks.
05:49But, Chakri, you know, talk to us about the entire pharma space as well.
05:52This morning, we're getting news that you have a pharma major that's come out with their breast cancer drug in India.
06:00And that's I can if I'm not wrong.
06:02But what is your take on the entire pharma space?
06:05Because over the course of last week, the weekend and this week itself,
06:08we've seen a lot of USFD approvals coming in for the major drugs that some of these companies are looking to launch.
06:14So, what's your take on that?
06:17You know, here there's a tale of two stories.
06:19One is domestic and one is international.
06:21On the domestic front, you know, companies like Mankind, et cetera, are well positioned because the demand remains intact.
06:28Yeah, there's no major negative surprises out there.
06:31On the international front, you know, all tariff talks aside, it's fairly clear that Trump will not increase or would not be in a position to increase tariffs on the Indian pharmaceutical generic sector.
06:42At the same time, you know, in terms of product announcements by the companies, it's in a good stead.
06:48And the valuations are all right.
06:49I mean, they've moved up a little bit.
06:51But this is a sector that we would continue to be constructive of.
06:54All right, that's today coming in on the pharma space.
06:59But with this, Vaishali, I just wanted to understand any of your stock ideas for today, which is making to your list and looking attractive right now.
07:10Definitely, there are quite a few, in fact.
07:12So, one of them is Muthut, which we saw yesterday, that it is already in a very strong uptrend.
07:18And as a disclaimer, we have also recommended to our clients.
07:21So, this is a good new round of momentum setting in.
07:25So, I'm looking at the stock with a target of 3130 as a trade strategy with stop loss of 2980.
07:32And the other stock in the cash category that I like is Hind Copper.
07:36That, too, saw very good volume and new round of momentum setting in.
07:41So, I think in all likelihood, this can do 320 and 285 would be the stop loss.
07:46Okay, so that's Hind Copper that's made its way to Vaishali's radar this morning.
07:51But on that note, we'll slip into a very short break and talk more about the trade setup expected today, just on the other side.
07:56Back with the market coming out of one of the quietest sessions yesterday, at least for the better part.
08:09And then the last hour slip that we had at our hands.
08:13You did see profit taking across the board pretty much.
08:16While, of course, IT was one sector which was under pressure from the word go.
08:20But look at Abharti, ICSA Bank, M&M, Maruti, Aishar.
08:25Even some of the auto plays actually saw some profit taking set in towards the latter part of trade.
08:30L&T has really been a non-starter.
08:32That's been the case with Reliance as well, barring a few dashes or attempts that both these stocks made, I think, in the last week or so.
08:41But Chakri, what's the case in point for some of these large cap heavyweights, which have just been non-participants in this lap of the market?
08:51L&T Reliance, classic examples.
08:55You're absolutely right, Aishar.
08:56A couple of things.
08:57One is, in case of Reliance Industries, a couple of things have happened.
09:01Globally, oil prices have come down.
09:04There has been a huge amount of volatility.
09:06And in managing that refining margins has been a challenging fact because, on the other hand, the rupee volatility has also increased.
09:14All these various factors together, you know, kind of impacts the GR.
09:19And second is, you know, this new energy business is a very, very significant value kickoff.
09:24That's clearly down the pike.
09:25And that's where the whole growth is going to come from.
09:27Now, with the GST cuts, you know, Reliance, what you call the retail segment of the business will clearly benefit.
09:37And again, you will see an uptick in volumes.
09:39So, some of the part story still is very effective.
09:41L&T, on the other hand, you know, fears of CapEx slowdown has pulled down the stock.
09:46But again, now with the revival of intent from the government, I think you will see L&T beginning to perk up.
09:52Okay, so that's the take coming in on some of the large caps.
09:59And Vaishali, give us your sense on how some of these large caps are placed on the charts.
10:03Because, like we were talking about Reliance, it's not given a significant move in so long now.
10:08HTFC bankers are just starting to move a little bit.
10:11Help us understand where on the charts do you see these stocks placed right now?
10:16And any momentum on either side if you're seeing right now?
10:19So, well, actually talking about Reliance, talking about HTFC bank, all these frontline stocks, I mean, they are taking a breather.
10:27In fact, it's access which is showing signs of revival.
10:31So, I would say a stock-specific movement does exist.
10:35So, I would focus more on access banks right now because in a couple of days, this is trying to get into a trend.
10:42And Reliance has just been in a very range-banging move.
10:45But still, the support levels are not broken.
10:48So, I would say when the bias is still positive, keeping in mind 1380 as long as this support, which is very crucial, is held on.
10:57So, I would maintain a range of 1380 to 1420 for now.
11:01But, well, not much to say it's the auto sector.
11:04It is sometimes the steel sector which is showing some strength.
11:08And that's about it.
11:11Okay.
11:12Vishali, great to have you on the show.
11:13Thanks, as always, for your time.
11:15Let me also welcome on board Aritya Agarwal.
11:17Aritya, hi.
11:18Good morning.
11:19What stock-specific or sector-related trends are you picking up?
11:24Morning, Aisha.
11:24Thanks for having me on the show.
11:25So, it's more of consumption-related that I see continues to be in focus.
11:31And then you see higher highs, higher lows in some of these spaces.
11:34So, Blue Star is something which I like, can be looked at for a fresh trade here.
11:39Yesterday, we saw a good closing in Blue Star.
11:42So, at current levels, there will be a buyer in Blue Star for a target of 21.50 on the upside.
11:46Plays a stop loss at 19.20 on the downside.
11:49The second stock is Naupri.com.
11:51We have seen that after a consolidation stock, finally, I've shown a breakout in trade yesterday
11:57backed by healthy volumes as well.
12:00So, my sense is Naupri can see higher levels from here on as well.
12:03So, for a target of 15.30, I'll be a buyer here.
12:07The stock was at 13.50 on the downside.
12:09All right.
12:10So, those are the buy calls coming in from Aritya.
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