SBI, IRCTC, ACC and Tata Motors share prices: Sumeet Bagadia says buy as 'many Indian companies will yield fantastic returns'

Sumeet Bagadia, Executive Director, Research at Choice Broking recommends buying SBI, IRCTC, ACC and Tata Motors shares at current prices. The market is trading at life highs and major analysts and fund managers have given their thumbs up to the Budget announcements. Many think India will get rerated and many Indian companies will yield fantastic returns in the coming years. Sumeet has recommended buying into SBI and IRCTC from PSU space, ACC and Tata Motors are private companies.

Sumeet recommends buying SBI in cash at Rs 335 with stop loss of Rs 315 and target of Rs 365. On the daily chart, the stock has shifted above the upper band of Bollinger formation, which suggests bullish strength in the counter.  Moreover, the price has also traded above the Ichimoku Cloud formation, which indicates bullish presence in the counter. A momentum indicator RSI (14) has shown good strength, which supports the bullish trend for near term. So based on the above structure, Sumeet is expecting an upside move for near term.

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Sumeet suggests buying IRCTC in cash at Rs 1488 with a stop loss of Rs 1440 and target of Rs 1580. On the daily chart, the stock is forming the Ascending Triangle Pattern, which is a continuation pattern and indicates bullish strength for near term. On a weekly time frame, the stock has sustained above Ichimoku Cloud formation, which suggests a bullish trend for the long term. A momentum indicator RSI (14) & MACD has shown positive crossover, which points out more bullishness in the prices.

Sumeet suggests buying ACC in cash at Rs 1740 with stop loss of Rs 1690 and target of Rs 1840. On the daily chart, ACC has formed Bullish Engulfing Candlestick pattern and moved higher, which indicates bullish reversal in the counter. Moreover, the price has also found the support at Middle Bollinger Band formation and moved higher, which suggests bullishness for near term. In addition, the price also shifted above 50 days SMA, which supports the bullish trend. A momentum indicator RSI (14) and Stochastic has shown positive crossover, which adds bullish presence in the counter. So based on the above technical structures, Sumeet is expecting a bullish move towards the level of 1840.

Sumeet recommends buying TATAMOTORS in cash at Rs 338 with stop loss of 315 and target of Rs 380. On a monthly chart, the stock has been rising from the last couple of months with high volume, which indicates a trend reversal in the counter. On a daily chart, the stock has shifted above the prior swing highs and above the upper Bollinger Band formation, which shows positive strength in the counter. A momentum indicator RSI (14) and MACD indicated positive crossover on the daily timeframe, which suggests bullish move for near term. So based on the above technical aspect, Sumeet is expecting bullish movement in TATAMOTORS for near term.