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Weekly Swing Trading Picks

At the commencement of each week, our analysts meticulously survey the markets to furnish a curated list of the top five swing trade stocks. These stock recommendations stem from a comprehensive analysis utilizing both fundamental and technical indicators. We consistently update our success rate and provide specialized commentary, especially during significant market events. The typical holding period for these swing trades ranges between 7 to 10 days, on average.

1. Ashok Leyland (ASHOKLEY)

Ashok Leyland boasts an operating revenue of Rs. 44,722.65 Cr. over the trailing 12 months. With an exceptional annual revenue growth of 59%, a pre-tax margin of 5%, and a commendable ROE of 14%, the stock is technically trading in proximity to its 50DMA and comfortably above its 200DMA by around 5%.

Ashok Leyland Share Price Targets for the Week:

- Current Market Price: Rs. 182

- Stop Loss: Rs. 176

- Target 1: Rs. 188

- Target 2: Rs. 192

- Holding Period: 1 week

Our technical experts anticipate an imminent breakout in ASHOKLEY, making it one of the prime candidates among the best swing trade stocks.

2. Indus Towers (INDUSTOWER)

Indus Towers reports an operating revenue of Rs. 27,726.30 Cr. over the trailing 12 months. With a modest annual revenue growth of 2%, a healthy pre-tax margin of 10%, and an ROE of 9%, the stock is technically trading close to its 50DMA and comfortably above its 200DMA by around 10%.

Indus Towers Share Price Targets for the Week:

- Current Market Price: Rs. 199

- Stop Loss: Rs. 191

- Target 1: Rs. 207

- Target 2: Rs. 215

- Holding Period: 1 week

Our technical experts foresee a positive crossover in INDUSTOWER, positioning it as one of the standout swing trade stocks.

3. Man Infraconstruction (MANINFRA)

Man Infraconstruction reveals an operating revenue of Rs. 1,862.08 Cr. over the trailing 12 months. Boasting an outstanding annual revenue growth of 67%, a robust pre-tax margin of 21%, and an exceptional ROE of 23%, the stock is technically comfortably placed above its key moving averages by around 19% and 62% from 50DMA and 200DMA.

Man Infraconstruction Share Price Targets for the Week:

- Current Market Price: Rs. 217

- Stop Loss: Rs. 208

- Target 1: Rs. 226

- Target 2: Rs. 235

- Holding Period: 1 week

 Our technical experts anticipate a consolidation breakout in MANINFRA, categorizing it among the premier swing trade stocks.

4. National Aluminium Company (NATIONALUM)

National Aluminium (Nse) exhibits an operating revenue of Rs. 13,182.62 Cr. over the trailing 12 months. Despite a marginal annual revenue de-growth of 0%, the stock boasts a healthy pre-tax margin of 14% and an ROE of 10%. Being debt-free, the company maintains a robust balance sheet, with the stock technically comfortably placed above its key moving averages by around 31% and 42% from 50DMA and 200DMA.

National Aluminium Company Share Price Targets for the Week:

- Current Market Price: Rs. 132

- Stop Loss: Rs. 126

- Target 1: Rs. 138

- Target 2: Rs. 143

- Holding Period: 1 week

Our technical experts anticipate a volume spurt in NATIONALUM, positioning it as one of the premier swing trade stocks.

5. Reliance Infrastructure (RELINFRA)

Reliance Infrastructure registers an operating revenue of Rs. 20,946.50 Cr. over the trailing 12 months. With a commendable annual revenue growth of 11%, a pre-tax margin needing improvement at -12%, and an ROE in need of enhancement at -34%, the stock is technically trading close to its 50DMA and comfortably above its 200DMA by around 15%.

Reliance Infrastructure Share Price Targets for the Week:

- Current Market Price: Rs. 210

- Stop Loss: Rs. 200

- Target 1: Rs. 220

- Target 2: Rs. 232

- Holding Period: 1 week

Our technical experts anticipate a reversal from the support in RELINFRA, designating it as one of the prime swing trade stocks.

STOCK	ACTION	CMP	SL	TARGET 1	TARGET 2
ASHOKLEY	BUY	182	176	188	192
INDUSTOWER	BUY	199	191	207	215
MANINFRA	BUY	217	208	226	235
NATIONALUM	BUY	132	126	138	143
RELINFRA	BUY	210	200	220	232

Analysis

1. The stock price is currently above the short, medium, and long-term simple moving averages.

2. The company is anticipated to report a positive quarter.

3. Over the past five years, the company has experienced lackluster sales growth, recording only 3.48%.

4. The return on equity for the company has been notably low, standing at -7.15% over the last three years.

Potential Factors Driving the Surge in Tata Motors' Stock

I. Growth in the Electric SUV Market: Tata Motors' stock surge can be attributed to the company's strategic emphasis on electric SUVs, aligning with the rapidly expanding electric SUV market in India.

II. Market Trends

   a. Dominance of Electric SUVs: Electric SUVs have witnessed a substantial increase in market share, growing from 1.3% in CY 2018 to 40.8% in CY 2023. This shift indicates a changing consumer preference toward sustainable and technologically advanced vehicles.

   b. Growth in the SUV Segment: The SUV segment is currently the fastest-growing in India, fueled by factors such as rising disposable incomes, demand for spacious vehicles, and a perceived sense of safety. These factors create a conducive market environment for electric SUVs.

III. Tata Motors' Electric SUV Lineup

   1. Punch EV Launch (February 2024): Priced at Rs 9.5 lakh, this makes it the most affordable battery-powered SUV in India.

   2. Harrier EV Launch (June 2024): Priced at Rs 22 lakh, targeting the mid-range electric SUV market.

   3. Curvv Coupe EV Launch (December 2024): Positioned at Rs 22 lakh, offering a competitive choice in the electric SUV segment.

   4. Sierra EV Launch (November 2025): The highest-priced model at Rs 25 lakh, catering to the premium electric SUV market.

IV. Mahindra & Mahindra's Electric SUV Plans

   a. XUV.e8 and XUV.e9 Production:

      - XUV.e8 production starts in December 2024 (priced around Rs 35 lakh).

      - XUV.e9 production begins in April 2025 (priced around Rs 40 lakh).

   b. Concept Models Production:

      - Production of concept models BE.05 and BE in October 2025.

      - Production of BE.07 in October 2026.

V. Market Positioning

   1. Tata Motors as Largest EV Player: Currently holding the largest market share in the EV segment.

   2. M&M's EV Portfolio Expansion: Mahindra & Mahindra aims to convert 20-30% of its portfolio to electric by 2027.

VI. Electric SUV Market Dynamics

   - JATO Dynamics India Data: Electric SUVs accounted for 40.8% of overall electric passenger vehicles in CY 2023. Higher pricing of e-SUVs compared to ICE counterparts contributes to potentially higher margins.

VII. Tata Harrier EV Features

   1. Impressive Range: Tata Harrier EV claims a 500km range on a full charge.

   2. Technological Advancements: Features include a 10.25-inch infotainment screen, fully digital color instrument cluster, and various connectivity and comfort options.

VIII. Tesla's Impact

   - Tesla's Entry into India: The announcement of Tesla establishing its first factory in India has positively influenced overall sentiment in the electric vehicle sector.

IX. Conclusion

   - Investor Confidence: Tata Motors' strategic focus on electric SUVs, aligned with market trends and consumer preferences, has bolstered investor confidence.

   - Sustained Growth: The company's diverse electric SUV lineup and commitment to sustainability position it favorably for sustained growth in the evolving EV market.

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