Top Stocks To Watch Out For January 2: M&M, South Indian Bank, Tata Motors & Others In Focus

Market Outlook 2nd Jan 2025

The Nifty opened flattish and after the initial drop to 23,550 levels, it witnessed a pullback move of 260 points. The index has been consolidating within a band from the last seven trading sessions. It formed a bullish candle on daily frame and negated its lower highs formation of the last two sessions.

Now it has to hold above 23,650 zones for an upside move towards 23,900 then 24,000 zones while supports are placed at 23,650 then 23,550 zones.

On option front, Maximum Call OI is at 24,300, then 24,100 strike while the Maximum Put OI is at 23,000, then 23200 strike. Call writing is seen at 24,100, then 23,750 strike while Put writing is seen at 23,700, then 23,600 strike.

Option data suggests a broader trading range in between 23,200 to 24,300 zones while an immediate range between 23,500 to 24,000 levels.

The S&P BSE Sensex opened on a flat note and moved lower but a smart recovery was seen from the support levels of 77,900 zones. It traded higher after the recovery from lower levels and ended the session with gains of around 350 points.

It formed a small bodied bullish candle on daily chart. Now it has to hold above 78,300 zones for an up move towards 78,900 then 79,100 zones whereas supports are placed at 78,300, then 78,100 zones.

The Bank Nifty Index opened on a negative note and drifted lower towards the 50,500 zones in the initial hour of the session. However from the lows it witnessed sharp recovery as it tested the 51,300 zone, some profit bookings in late trade got the index off the highs.

It formed a small bodied candle with either side wick. The index took support from its 200 DEMA and witnessed some bounce.

Now till it holds below 51,350 zones weakness could be seen towards 50,500 then 50,250 levels while on the upside hurdle is seen at 51,350 then 51,650 zones.

Nifty future closed positive with gains of 0.42 per cent at 23,907 levels. Positive setup seen in IRB, Laurus Labs, Maruti,  Aurobindo Pharma, Kotak Bank, Jubilant Food works, Voltas, CDSL, United Spirits, Muthoot Finance and M&M while weakness in Crompton , Prestige Estate, Cholamandalam Finance, Hindalco, Cyient, Max Financial, Tata Chemicals,  Cummins India, Tata Elxsi, and Baja Auto.

M&M - TECHNICAL CALL OF THE DAY

Stock is on the verge of giving a trendline breakout above 3100 levels. It is relatively outperforming within the auto space which has bullish implications.

Momentum indicator RSI is positively placed which may support the ongoing upmove. 

CMP 3082 SL 3000 TGT 3250

Top 5 Stocks To Watch Out For January 2

South Indian Bank:

The Bank has released Business Updates for the quarter ended December 2024. The data indicates that the Gross Advances have increased 11.94 per cent YoY to Rs 86,965 crore, Total Deposits increased 6.28 per cent YoY to Rs 1,05,378 crore and CASA too has increased to Rs 32,831 crore, reflecting a growth of 4.13 per cent YoY. However, the CASA ratio has reduced from 31.80 per cent in December 2023 to 31.16 per cent in December 2024.

Godawari Power:

The company has completed acquisition of additional 3,36,069 equity shares of JPL from the promoter Mr. Ramesh Kumar Agarwal for total consideration of Rs 9.98 crore. JPL engaged in the business of Recycling of Non-Ferrous Metals waste & scrap. 

The objective behind this acquisition is to diversify the company's business activities into recycling of non-ferrous metals, which is an emerging business and provides growth opportunities. 

Godawari Power had acquired 49% stake in the first tranche through a primary infusion and has now acquired an additional stake of 2% through a secondary purchase from the promoters, totaling to 51%. 

Sandur Manganese:

The company has received approval for enhancement of Permissible Annual Production (PAP) limit of iron ore from the present 3.81 Million Tonnes Per Annum (MTPA) to 4.36 MTPA in Mining Lease from Central Empowered Committee.

The company will now obtain Consent for Operation (Expansion) from Karnataka State Pollution Control Board and other regulatory approvals to operate at enhanced levels.

Tata Motors:

Tata Motors sales in the domestic & international market for Q325 stood at 2,35,599 vehicles, compared to 2,34,981 units during Q3FY24. Domestic sales of MH&ICV in Dec 2024, was 15,968 units vs 16,851 units in Dec 2023; In Q3FY25 it was 44,023 units, compared to 44,365 units in Q3 FY24.

Domestic & International sales for MH&ICV in Dec 2024, was 16,604 units vs 17,591 units in Dec 2023; while in Q3 FY25 it stood at 46,108 units, vs 46,534 units in Q3 FY24.

Looking ahead, management expects demand to improve in Q4FY25 across most segments of the CV industry and remains optimistic about the outlook for the PV industry. The key aspects to watch out in 2025 will be government's focus on infrastructure spend, and growth in end use segments, which will augur well for the commercial vehicles industry while multiple product launches, innovations and a strengthened multi-powertrain strategy for the PV segment.

Railtel Corp:

RailTel Corporation has received the work order from Bharat Coking Coal for Works amounting to Rs 78.43 crore. The terms of the order include integrated IT Based Security Infrastructure Along With Various Types Of Services. 

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