Two Trades for Today: A Housing Finance Major for Over 9% Surge, an MNC Electronics Services Stock 

for Close to 6% Gain

In today's volatile market environment, identifying strong breakout candidates becomes crucial for traders and short-term investors. After a detailed technical and fundamental screening, two specific counters have emerged as high-potential trades for today. One is a well-established housing finance major expected to gain over 9%, while the other is a global electronics services multinational with room for a near 6% upmove. Here’s a deep dive into why these two stocks should be on your radar.

Stock 1: Housing Finance Powerhouse Set for a Breakout – Targeting Over 9% Upside

Company Overview

The first stock on our radar is a dominant player in the housing finance sector. Known for its robust loan book, stable asset quality, and consistent performance even during economic slowdowns, this company continues to stand out amid rising housing demand and lower delinquency rates.

Why It's Attractive Today

1. Technical Breakout Zone:
   The stock is currently trading around ₹532 and has formed a bullish cup-and-handle pattern on the daily charts. The neckline breakout is visible near ₹536, with increasing volume confirming institutional interest. Technical indicators like MACD and RSI are aligned in bullish territory.

2. Fundamentals Support the Rally:

   • Loan Book Growth: The company reported an 18% YoY increase in its loan disbursal during the last quarter.

   • Net Interest Margin (NIM): Improved to 3.9%, showing efficient cost control.

   • Asset Quality: Gross NPAs reduced to 1.6%, down from 2.1% a year ago, reflecting stronger underwriting standards.

3. Sector Tailwinds:
   With the government's sustained push for affordable housing and the recent rate pause by RBI, housing finance companies are back in favour. Demand remains high across Tier-II and Tier-III cities.

4. Price Target and Stop Loss:

   • Entry Zone: ₹532–536

   • Target: ₹583 (approx. 9.5% upside)

   • Stop Loss: ₹518

Investor Sentiment

Brokerages such as Axis Securities and Motilal Oswal have maintained a ‘Buy’ rating on the stock, citing healthy return ratios and diversified loan portfolios.

Stock 2: MNC Electronics Services Leader – Targeting Close to 6% Upside

Company Overview

The second trade idea is a multinational electronics manufacturing services (EMS) firm listed in India. This company has benefited immensely from the China+1 strategy and the government's PLI (Production-Linked Incentive) scheme for electronics manufacturing.

Why It's a Smart Trade Today

1. Bullish Technical Setup:
   After consolidating for several sessions near ₹417, the stock gave a clean breakout above ₹425 with significant volume support. It has also reclaimed its 20-day and 50-day moving averages, signaling short-term bullish momentum.

2. Strong Fundamentals:

   • Q4 Results: Revenue jumped 23% YoY while net profit expanded 31%, driven by increased order inflows from global OEMs.

   • Global Partnerships: The firm recently signed long-term contracts with two U.S.-based electronics giants, ensuring a consistent order pipeline.

   • Cash Reserves and ROCE: Over ₹600 crore in cash and a Return on Capital Employed (ROCE) of 18% reflects strong operational efficiency.

3. Sectoral Growth Trends:
   EMS companies are riding the wave of global diversification from China. With rising demand for IoT devices, smart gadgets, and industrial automation, the sector is poised for multi-year growth.

4. Price Target and Stop Loss:

   • Entry Zone: ₹425–428

   • Target: ₹451 (approx. 6% upside)

   • Stop Loss: ₹414

Momentum Drivers

FIIs have been gradually accumulating the stock over the past three months, reflecting growing confidence in its long-term story.

Comparative Snapshot

Risk and Reward Considerations

While both stocks present compelling upside opportunities, it's essential to manage risk:

• Use strict stop losses to prevent capital erosion in case of sudden market reversals.

• Allocate capital in proportion to your risk appetite.

• Monitor news flow related to RBI policy for housing finance and geopolitical developments impacting electronics exports.

Final Thoughts

These two trade ideas—one from a robust housing finance player and the other from a rising MNC in the electronics services sector—are backed by strong technical breakouts and fundamental momentum. With sectoral tailwinds and positive investor sentiment, they offer a favorable risk-reward equation for today’s trading session.

As always, perform your own due diligence and align these ideas with your risk profile before execution.

Disclaimer: This article is for educational and informational purposes only. It does not constitute investment advice. Please consult your financial advisor before making investment decisions.