Pick of September 2023: Coal India is a hot pick; here's why brokerages recommend to buy
Nifty closed above the 19,400 level on value-buying in power, metal and oil stocks following strong domestic macro data and global cues. In September, domestic markets will be driven by macro data along with global trends, before getting ready for the second-quarter earnings of current fiscal 2023-2024 in October. Amidst this, brokerages have recommended buying one PSU stock in September.
Religare Broking has picked state-run coal miner Coal India (CIL) as its pick of the month for September 2023 and has recommended a ‘buy’ on the stock with a potential upside of nearly 11 per cent. At the current market price (CMP) of ₹235 for Coal India's stock, Religare Broking has recommended ‘buy’ at a target price of ₹260 in an initiation range of ₹234- ₹236, with an expected gain of 11 per cent, and a stoploss of ₹223. According to the brokerage frim, Coal India has been trading in a consolidation range i.e.
230-235 for the last ten months, after a strong directional move. ‘’It attempted a breakout in June 2023 but failed and retraced to the support zone of the medium term moving average i.e. 100 EMA.
Formed a higher base in the last three months and currently trading on the verge of a breakout again,'' said Religare Broking. As per the brokerage firm's rationale, the PSU stock has gained only a per cent but with substantial rise in OI nearly 23 per cent. 92 per cent of open positions rolled to the next series (~92 per cent on last expiry).
OI of 15,000 contracts as against 12,000 previously with decent delivery in cash, according to the brokerage. ‘’With possibly long addition and carry forward of these bets, stock may move higher,'' said Religare Broking. On September 1, shares of Coal India settled 2.93 per cent higher at
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