As we enter into fourth month of the year, the Indian Metrological Department (IMD) have forecasted heatwave conditions in several states such as Karnataka, Maharashtra, Delhi etc.
The imminent arrival of the summer season is poised to escalate the demand for air conditioners and coolers, particularly in regions anticipated to experience intense heatwaves by the IMD.
This presents a lucrative opportunity for investors to capitalize on by investing in air conditioner manufacturing companies, given the projected surge in demand during the summer months.
Also read: Stocks to buy: BSE, Crompton Greaves – two stock picks by HDFC Securities with up to 40% upside potential
Brokerage firm Mehta Equities have named four stocks to buy this summer season.
“Post IMD warning Air Condition manufacturers are witnessing a surge in share prices amid hope for higher demand for cooling solutions this coming summer. As per IMD reports April to June 2024 would witness more heat due to rise in mercury levels. However last summer was not as much anticipated but this summer shows few early signs of overheating pan India. This is giving undue advantages to air cooling solutions players discounting the higher demands in Q1FY25 sales. Over the medium-term, demand outlook we expect a higher 2 digit sales growth can be reported due to warning headlines,” said Prashanth Tapse, Mehta Equities Ltd.
Table of Contents
Stocks to buy
Symphony
Technically, since the last 2-3 years, the stock has been moving in a firm consolidation phase, witnessing good accumulation on every decline. At current levels of 962, the downside risk is very limited, with major support placed at the 800 mark. Any decline towards 920 should be a good buy on the stock for potential upside targets of 1200 and 1500 with a fixed stop loss placed at 800 on a weekly closing basis.
Bajaj Electrical
The stock is trading near its trendline support mark of 900 on its weekly charts. Any pullback towards the zone of 875 to 900 should serve as a good buying opportunity on the stock with a stop loss kept slightly below 840 on a weekly closing basis for potential upside targets of 1200 and above. A strong technical structure with limited downside risk makes the stock attractive at current levels.
Also read: Sobha, DLF, Phoenix Mills and 3 other realty stocks delivered 100%-235% returns in FY24; check full list
Voltas
On its short-term charts, Voltas has given a good breakout above its recent resistance mark of 1139.60 and looks ready for a strong upside move towards 1356, which is the all-time high mark on the stock. On any pullback, the stock should now find support between 1120 to 1140 zone, so this should serve as a good accumulation area. A major support is placed at 1020, which should serve as a stop loss on a daily closing basis for potential upside targets of 1356 and above.
Bluestar
Technically, the stock has been consolidating well within its range of 1220 to 1359 and is in a good uptrend. Any pullback in the stock towards 1250-1260 should serve as a good buying opportunity on the stock, so this zone should serve as an accumulation zone. On the upside, potential targets look to be near 1500-1600 levels as this uptrend rally continues, and a fixed stop loss should be kept at 1100 on a weekly closing basis for the stock.
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Published: 03 Apr 2024, 09:08 AM IST
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