Stocks to buy: TVS Motors, BEL shares gearing for an up-move, analysts see as much as 14% upside

Amid heightened uncertainty, analysts at ICICI Direct have picked two stocks out of the futures & options universe, based on their stock filtration model, anticipating an up-move.

On Thursday, Sensex and Nifty started the day with weakness, falling nearly 2% each while India VIX was up 5%, breaching 23 levels yet again. (Image: REUTERS)

Domestic stock markets continue to remain volatile as multiple headwinds weigh on investor sentiment, not just on Dalal Street but globally as well. Amid heightened uncertainty, analysts at ICICI Direct have picked two stocks out of the futures & options universe, based on their stock filtration model, anticipating an up-move. These include TVS Motors and Bharat Electronics Limited (BEL). On Thursday, Sensex and Nifty started the day with weakness, falling nearly 2% each while India VIX was up 5%, breaching 23 levels yet again.

TVS Motors: Buy
Target price: Rs 748 per share
Stop loss: Rs 580

Analysts noted that auto stocks have remained range-bound in the last couple of weeks but predict a fresh up-move could be on the cards. “Stocks like TVS Motors have reverted from their support level of Rs 600. The price distribution is also suggesting limited downward movement in the stock,” ICICI Direct said. Further, heightened delivery based action has been noticed by analysts for TVS Motors which, in their view, suggests, ongoing accumulation in the stock at every level.

In terms of volatility, since January 2022, the 30-day volatility continued to remain lower and despite recent market weakness, it is still at par with 60-day volatility, indicating range bound move of the stock. “Going ahead, we expect the 30 day volatility to decline further from current levels, which may provide fresh momentum,” ICICI Direct said while advising investors to buy the stock in Rs 632-645 per share range with a three-month time frame. Target hints at 12% upside from Thursday’s lows.

Bharat Electronics Limited: BUY
Target price: Rs 260 per share
Stop-loss: Rs 202

“Bharat Electronics (BEL) has remained largely in broader range in the last three to four months. However, the stock has exhibited strong outperformance compared to its peers,” ICICI Direct said. “The price distribution is also suggesting limited downside movement in the stock. The majority of the reading for the stock is in the 0-2% range. We believe it will resume its upward bias after the ongoing consolidation,” they added.

Analysts noted that in the last couple of weeks there has been below average delivery despite the selling pressure, suggesting the exiting of weak hands. Buying has been advised in Rs 220-226 per share range with a three-month time frame. The target price suggests upside potential of 14% from today’s lows.

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