The Indian equity markets closed with marginal gains after a highly volatile session, which saw early enthusiasm from significant GST reforms giving way to late-session profit booking.
Nifty 50 advanced 19.25 points, or 0.08%, to settle at 24,734.30, while Sensex gained 150.30 points, or 0.19%, ending at 80,718.01. The rise was primarily driven by the government’s decision to rationalize GST slabs, which triggered broad-based buying in consumption-linked sectors. Against this backdrop, India’s top market experts recommend these stocks to buy on 5 September.
MarketSmith India’s Best Stock Recommendations for the Day
Buy: Manappuram Finance Ltd. (current price: ₹ 284)
- Why it’s recommended: Strong leadership and investment backing, product diversification and growth, high-yield gold loan business, and robust liquidity and capital base
- Key metrics: P/E: 31.26, 52-week high: ₹292.70, volume: ₹ 75.21 crore
- Technical analysis: Flat base pattern breakout
- Risk factors: Heavy dependence on gold loans and price volatility, rising competition, regulatory pressure, asset quality concerns in non-gold businesses, regulatory hurdles, and compliance risks
- Buy: ₹ 284
- Target price: ₹ 320 in two to three months
- Stop loss: ₹ 265
Buy: Aster DM Healthcare Limited (current price: ₹635)
- Why it’s recommended: Aggressive domestic expansion, merger synergies, strategic realignment to focus on India
- Key metrics: P/E: 77.86; 52-week high: ₹675; volume: ₹ 88 crore
- Technical analysis: Downward sloping trendline breakout retest
- Risk factors: Execution risks from aggressive capex, high competition in a fragmented sector
- Buy at: ₹625–640
- Target price: ₹720 in two to three months
- Stop loss: ₹ 599
Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman:
DIVGIITTS (Cmp ₹676.75)
DIVGIITTS: Buy above 680 and dips to ₹640, stop ₹620 target ₹730-755
- Why it’s recommended: Divgi TorqTransfer Systems Ltd. (DIVGIITTS) is an India-based company that designs, develops, and manufactures advanced drivetrain components and systems for the automotive industry. This counter has simultaneously been showing some revival as it is getting steady help from the cloud support and has now generated a buy opportunity in yesterday. After a push above the clouds, we can see that the stock is set for a turnaround. Go long.
- Key metrics:
- P/E: 75.68,
- 52-week high: ₹712,
- Volume: 94.03K.
- Technical analysis: Support at ₹600, resistance at ₹800.
- Risk factors: Delays in government subsidy receipts and market collections. Disruptions to interactions with farmers.
- Buy at: above 680 and dips to ₹640.
- Target price: ₹730-755 in 1 month.
- Stop loss: ₹620.
ARVINDFASN (Cmp ₹540.45)
ARVINDFASN: Buy above 541 and dips to ₹515, stop ₹498 target ₹591-610
- Why it’s recommended: ARVINDFASN has shown a V -shaped recovery indicating that the trends in this counter looks strong for some positive traction ahead. The prices have been moving in oscillation forming V-shaped recovery and the recent move out the of the consolidation augurs well for the prices. Can look to go long.
- Key metrics:
- P/E: 376.74,
- 52-week high: ₹639.70
- Volume: 280.24K.
- Technical analysis: Support at ₹503, resistance at ₹625.
- Risk factors: Changes in government regulations and Delays and debt servicing capacity due to increased borrowings.
- Buy at: above 541 and dips to ₹515.
- Target price: ₹591-610 in 1 month.
- Stop loss: ₹498.
TIRUMALCHM (Cmp ₹308.50)
TIRUMALCHM: Buy above 309 and dips to ₹296, stop ₹287 target ₹339-355
- Why it’s recommended: The counter has been undergoing some consolidation and has formed a rounding pattern after facing intense selling pressure for more than 8 weeks. The prices hit some consolidation zone at the cloud support indicating that the positive turnaround is emerging. After the recent test of the TS & KS Bands. With a strong closing on Thursday augurs well , we can look at some positive vibes to emerge.
- Key metrics:
- P/E: 91.20,
- 52-week high: ₹394.95,
- volume: 347.88K.
- Technical analysis: Support at ₹280, resistance at ₹370.
- Risk factors: Supplier retention and potential customer preferences, regulatory challenges.
- Buy at: above 309 and dips to ₹296.
- Target price: ₹339-355 in 1 month.
- Stop loss: ₹287.
Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.
Ankush Bajaj is a Sebi-registered research analyst. His registration number is INH000010441.
MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. Trade name: William O’Neil India Pvt. Ltd. (Sebi-registered Research Analyst Registration No.: INH000015543)
Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
