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Power Finance Corporation Ltd

Company Outlook

* PFC is the financial backbone of the Indian Power Sector and we pick PFC to play the changing face of the Power Sector in India.

* The resolution of legacy portfolios coupled with encouraging asset quality trends makes us optimistic about Power Finance Corporation.

* Enforcement of Discipline in the Power Sector through calibrated penalties on defaults by discoms together with the incentivized clearing of old overdue are in our view positive tailwinds for PFC going forward.

Technical Outlook (Buy 50% at CMP: 136)

* The power sector is likely to be in strong focus ahead of the budget and could be one of the highlights of the session.

* PFC has been stuck in a long consolidation phase for the past 6 years. The stock within the broad range now shows a change of polarity on the lower time frame with strong buying action since the past month.

* The momentum indicator RSI has surpassed the resistance of 70 and entered the strong buying zone which confirms the strength of the stock.

* The 50 weekly SMA (Daily moving average) stands at 118 which will act as a cushion for the bulls.

ITC Ltd

Company Outlook

* ITC is a diversified conglomerate that is seeing strong traction in all its business verticals thereby making the 25% ROE business an attractive proposition.

* We envisage a moderate tax scenario for Cigarettes and the improving margin profile across its business verticals resulting in robust free cash generation thereby enhancing prospects of a de-merger going forward.

* New product launches coupled with positive Tailwinds across its business verticals position ITC in a sweet spot.

Technical Outlook (Buy 50% at CMP: 335)

* The FMCG space witnessed a lot of volatility in the past year due to the global headwinds on the interest rates, however, the sector overcame the hurdle and witnessed a sharp recovery.

* ITC was the top performer in the entire space and would also continue to lead the sector in the coming months.

* The stock is trading in a strong uptrend with higher high and higher low formations on all the time frames confirming the strong bullishness.

* The momentum indicators such as RSI and ADX are in the strong buying zone which confirms the strength of the stock. The stock is an ideal combination of growth and dividend yield.

Tata Power Ltd

Company Outlook

* Tata Power is India’s largest power distribution company in the private sector with a presence across the power value chain and is an attractive bet to play Clean Energy & EV Infrastructure

* Its de-leveraging & strategic roadmap on the Renewables business should in our view bolster the prospects going forward

* Capital Allocation towards High Growth areas of Renewables, Solar Roof-Tops, Solar Water Pumps, and EV charging stations provides a structural growth story

Technical Outlook (Buy 50% at CMP: 204)

* The diamond stock from the prestigious TATA GROUP had seen a strong up move past 2020 after a massive underperformance of 12 years.

* The stock after the spectacular rally is showing a time correction for the past 1 year. The stock is forming a base and moving above 230 will confirm the breakout in the lower time frame.

* The momentum indicator RSI is entering the oversold territory and a bounce from there would be an ideal place to initiate fresh long positions.

* The stock is trading near its 52-week high and will accelerate the move on the upside once taken out.

NTPC Ltd

Company Outlook

* India's largest Power Producer with over 70gw of capacity aims to quadruple its share of non-fossil energy from the present level of 10% in the next decade through its subsidiary - NTPC Green Energy.

* Its low cost of funds and aspirations in growing its RE portfolio would in our view improve its ESG score and boost investor confidence.

* NTPC with a 25% market share is set to transform itself from conventional energy into an ESG accretive energy company and its recent collaboration with Energy Vault is aimed at accelerating its energy transition goals.

Technical Outlook (Buy 50% at CMP: 166)

* The stock has been consolidating within a big range of 160 - 183 for the last several weeks.

* The price has been sustaining above 50 weeks exponential moving average since April 2021.

* The shorter moving average (50EMA) remains above the longer moving average (200DMA).

* Over the medium term, the stock is likely to witness a decent rally.

* On the lower end, the price trend may weaken below 148.

Siemens Ltd

Company Outlook

* We pick Siemens to play the upcoming Railway Capex Theme on Electrification & Signaling.

* Its strong order pipeline in Railways, Metros, Airports, and Infrastructure projects provides clear visibility going forward given its undisputed leadership in Technology

* The traction was seen across Energy, Mobility, and Smart Infrastructure in our view positioning Siemens at the forefront.

Technical Outlook (Buy 50% at CMP: 2835)

* The stock has been consolidating within the range of 2700-3000, currently trading in the middle of the range.

* Besides, the price has sustained above the 50 EMA for the last several weeks.

* The momentum indicator RSI remains above the 50 mark. Over the medium term, the stock is likely to witness a rally towards 3200 and 3400.

* On the lower end, the price trend may weaken below 2600.

Chambal Fertilisers & Chemicals Ltd

Company Outlook

* The stock price of Chambal has corrected substantially on account of higher subsidies from the GO! which together with the rupee depreciation and the Russia-Ukraine conflict put pressure on its working capital and leverage position.

* Given the assurance from the Finance Ministry regarding payment of subsidies and the strong positioning of Chambal in both Urea & NPK we pick Chambal to play the Agri Theme ahead of the Union Budget.

Technical Outlook (Buy 50% at CMP: 289)

* The stock has sustained above the previous consolidation on the weekly chart suggesting a bullish chart set up.

* Besides, the stock has sustained above 200DMA on the weekly timeframe. The RSI is entering a bullish crossover.

* Over the medium term, the stock is likely to witness a rally towards 350 and higher. On the lower end, the price trend may weaken below 285.

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