MarketSmith India Unveils Expert Stock Recommendations for 12 February
MarketSmith India, a leading stock research platform, has released its top stock recommendations for 12 February, highlighting two promising buys: Craftsman Automation Ltd and TVS Motor Company Ltd. This analysis comes amid a mixed trading session in the Indian equity markets, where Nifty 50 managed a slight gain while Sensex ended lower.
Market Recap: Mixed Signals with Sectoral Divergence
The Indian equity benchmarks concluded Wednesday's session on a mixed note. Nifty 50 edged up by 0.07% to settle at 25,953.85, whereas Sensex snapped its three-day winning streak, declining 0.05% to close at 84,233.64. The session was marked by sharp sectoral performance differences. A robust rally in auto and PSU banking sectors, driven by strong Q3 results from Eicher Motors and State Bank of India, was largely offset by a broad-based selloff in the IT sector, led by TCS and Infosys.
Market breadth tilted slightly in favor of the bears, with an advance-decline ratio of approximately 1:1.1. On the NSE, 1,485 stocks advanced while 1,683 declined. Technically, the index continues to face stiff psychological resistance at 26,000, forming a consolidation pattern that suggests a "wait-and-watch" approach among institutional players. Macroeconomic sentiment remained cautiously optimistic following the recent India-US trade framework, though volatility persists ahead of global inflation data releases.
Stock Recommendation 1: Craftsman Automation Ltd
Current Price: ₹8,100
Why It's Recommended: Craftsman Automation boasts a strong presence in automotive components, with diversification across auto segments and a growing non-auto industrial business. The company benefits from a robust client base focused on OEMs, increasing exposure to premium vehicles, and a consistent revenue growth trend. Additional strengths include improving capacity utilization, high entry barriers in precision casting, a focus on value-added products, and long-term industry growth tailwinds.
Key Metrics: P/E ratio of 53.46, 52-week high of ₹8,220.00, and volume of ₹95.95 crore.
Technical Analysis: The stock shows a flat base breakout pattern.
Risk Factors: High dependence on the auto sector, cyclical demand risks, concentration among OEM clients, margin pressure from raw materials, elevated debt levels, a capex-heavy business model, execution risks in expansions, potential disruption from the EV transition, impact of global slowdowns, and working capital intensity.
Buy Range: ₹8,070–8,140
Target Price: ₹9,350 within two to three months
Stop Loss: ₹7,600
Stock Recommendation 2: TVS Motor Company Ltd
Current Price: ₹3,860
Why It's Recommended: TVS Motor is recognized for its strong brand and market presence, featuring a diverse product portfolio that includes two-wheelers and three-wheelers. The company is expanding into growing export markets, with a focus on premium and electric bikes. It maintains a strong distribution network, healthy operational cash flows, consistent R&D investment, cost optimization initiatives, improving dealer financing, and expansion into new geographies.
Key Metrics: P/E ratio of 285.62, 52-week high of ₹3,909.00, and volume of ₹434.10 crore.
Technical Analysis: The stock exhibits a cup with handle base breakout.
Risk Factors: High dependence on domestic two-wheeler demand, cyclical automotive industry risks, intense competition pressure, commodity price volatility, dealer and inventory risks, regulatory and emission norms risks, FX fluctuations affecting exports, EV adoption cost challenges, capex and scaling risks, and margin pressure from pricing competition.
Buy Range: ₹3,840–3,880
Target Price: ₹4,450 within two to three months
Stop Loss: ₹3,650
Technical Outlook for Nifty 50 and Nifty Bank
Nifty 50 showed early signs of stabilization after a recent corrective phase, supported by improving price action on the daily chart. The index formed a higher low over past sessions and closed above its short-term moving averages, indicating a gradual shift from a sell-on-rise structure to a consolidation-with-positive-bias setup. Momentum indicators are turning constructive, with the RSI rebounding to the mid- to high-50s and the MACD showing a bullish crossover.
According to O’Neil’s methodology, the Indian equity market has transitioned from a Downtrend to a Rally Attempt, suggesting an early improvement in near-term sentiment. However, the market is likely to enter a consolidation phase to digest gains, with support near 25,400–25,100 and resistance at 25,800–26,000. A sustained close above 26,000 could trigger further upside toward 26,300–26,400.
Nifty Bank performed resiliently, closing 0.20% higher at 60,746.10, benefiting from a "buy-on-dips" sentiment. Technical analysis indicates a consolidation phase with improving momentum indicators, such as the RSI near 60 and MACD showing early bullish signs. Immediate support is near 60,500–60,400, with resistance at 61,000; a breakout above this level could target 61,500–62,000.
About MarketSmith India
MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. It offers tools and resources to help investors make informed decisions based on the CAN SLIM methodology, founded by legendary investor William J. O'Neil. The platform provides a 10-day free trial for registered users. Trade name: William O’Neil India Pvt. Ltd., with SEBI Registration No.: INH000015543.
Disclaimer: The views and recommendations in this article are those of individual analysts and do not represent the views of Mint. Investors are advised to consult certified experts before making any investment decisions.
