“On Friday, we saw a fair bit of selloff in a lot of consumer discretionary names as well as some of the names across telecoms and other sectors. I would think that this is a good time to buy into some of these names for investors wanting to play the Budget or probably look at slightly more medium term beyond the Budget.”

​Nifty has broken down from its consolidation range and slipped below its 100-day exponential moving average (EMA) of 17,900 levels, which was being defended for the past 23 sessions. The short-term moving averages are in a falling mode, which indicates the bearish momentum could continue in the upcoming week.

“Friday was a good day and over the next few days, any investor with a time horizon of one year and above can go and buy into these stocks because these companies are doing well and will continue to do well. The banks clearly stand out in that sense because they are down pretty sharply today. "

Not only automobile makers, the equipment makers too, saw robust growth in the third quarter. Sona BLW reported a strong 39% YoY growth in revenue to Rs 685 crore, with battery electric vehicles accounting for 26% of the revenue.

A long bullish candle on the daily scale has opened room for the stock to now breach Rs 9,000 levels in the next 3-4 weeks, suggest experts. The breakout was accompanied with strong volumes, and on the weekly scale as well, the stock formed a strong bullish candle which is a positive sign. The stock rose more than 3% in a week and over 7% in a month.

The S&P BSE Sensex fell more than 700 points while Nifty50 closed below 17900 levels on Wednesday. Indian markets remained shut on Thursday for a public holiday.

New model launches, healthy order book and commodity/operating leverage tailwinds will further support strong performance going ahead," said JM Financial in a client note. The brokerage values the stock at 25 times its one-year forward price-to-earnings as it raised the price target.

Maruti Suzuki India, incorporated in the year 1981, is a Large Cap company (having a market cap of Rs 264622.13 Crore) operating in Auto sector.

The domestic brokerage has maintained a sell rating on the stock with an increased fair value of Rs 7,850. It said the margin trajectory is likely to lag expectations, led by growth moderation in the entry-level segment, which will increase discounts, and unfavorable forex and uptick in base metal prices.

Morgan Stanley maintained an overweight rating on Maruti Suzuki post December quarter results with a target of Rs 10,483.

Stocks that were in focus include names like Maruti Suzuki which rallied more than 3% post Q3 results, Tata Motors which gained more than 3% ahead of results on Wednesday, and TVS Motor Company which closed flat.

Revenue from operations rose nearly 25% on year to Rs 29,044 crore and was also higher than the estimated Rs 27,162 crore.

Since November 2022, the stock has remained in pressure and is currently oscillating around a 20-month EMA. The stock may witness near-term volatility, as its quarterly result is scheduled on 24th January 2023.

The numbers are likely to drop on a sequential basis due to lower sales volume and higher expenses incurred on account of advertising and promotion

I think for the auto sector, particularly passenger vehicles, the growth run continues. In between we had some challenges on the margin front and for Maruti particularly their overall product basket was not looking that good with competition coming in from the Kia and the GM and many other names. But I think in the last six months or so, if you see their product offering has been much, much better.

Credit Suisse maintained an outperform rating on Bank of India with a target price of Rs 110. Core profitability has improved, and the provisioning remains elevated, it said.

Morgan Stanley maintained its overweight stance on Maruti Suzuki with a target of Rs 10,483. The global investment bank believes that the share price will rise relative to the country index over the next 30 days.

Maruti Suzuki India, incorporated in the year 1981, is a Large Cap company (having a market cap of Rs 253445.17 Crore) operating in Auto sector.

I think having some sort of a cap on what sort of exposure you are taking when it comes to PSUs would definitely be advisable. This is because when you are going through a turbulent time and 2023 right from the beginning looks like it is going to be a difficult year to navigate, we have to remember that what kind of exposure in which kind of sectors and stocks you are taking exposure. That becomes very crucial so we would avoid high beta low quality names when it comes to this year.

​I think the only issue largely is the continental Europe where the outlook is still quite hazy which contributes about 50% kind of an overall revenue mix.

After a healthy recovery over the last two-three months, 2W demand momentum has slowed down again, resulting in an expected decline of 5-7% YoY for retail volume in Dec22.

“Options data suggests a broader trading range in between 17700 to 18500 zones while an immediate trading range in between 17850 to 18250 zones,” Chandan Taparia, Analyst-Derivatives at Motilal Oswal Financial Services Limited, said.

Analysts say auto demand is recovering from its worst slowdown in decades, and they expect 12-18% volume CAGR for passenger vehicles, two-wheelers, and trucks over FY23-25E. Strong top-line growth with improving margins should fuel double-digit EPS CAGR for most OEMs, the report said.

Price close above upper band of falling channel containing last two months decline signalling technical pullback likely in coming sessions.

On the options front, the weekly maximum Call OI has shifted to 18200 then 18300 strikes while the weekly maximum Put OI is placed at 18000 and then towards 17800 strikes. Meaningful Call writing is seen at 18100 then 18200 strike while minor Put writing is seen at 17900 then 18000 strike.

The NSE Nifty index closed 189.6 points down at 18042.95

“While production has increased, it has not really increased in line with the demand patterns. As a result, some of the models like the Ertiga, XL6, Grand Vitara, Brezza, Dzire and Swift, are seeing long waiting periods, which we will try to reduce. Second, we will try to push our volumes in the SUV segment to increase our market share there. Hence the medium-term objective of getting to 50% market share.”

The brokerage estimates FY23E volumes to grow by ~21% YoY, implying a residual growth of 13%, or run-rate of ~184.7k units. The stock trades at 35.5x/22.2x FY23E/FY24E earnings.

L&T being the largest player is still undervalued relative to its growth prospects, the kind of changes which have happened on its balance sheet and the deleveraging they have been able to do and the fact that they have been able to get very strong order flows across the board.

“I do not think one should look at the new age tech stocks. Some people may get tempted by the price correction but I still believe that this sector should be avoided. As people continue to chase value and looks for pockets with valuation comfort, PSU bank is another sector to be avoided in 2023.”