Post impressive Q2 results: SBI, Coal India look set for up to 21% rally

Coal India, SBI and Adani Enterprises continue to trade with a robust bullishness, while TVS Motor and Bajaj Finance seem to be struggling to hold their ground, technical charts show.

The Q2FY23 ended September, saw several companies post highest-ever profit, with strong guidance of likely robust prospects ahead. Overall, companies from banking, capital goods, auto and chemical sectors reported stellar quarterly earnings. 

Coal India, for instance, reported a consolidated net profit of Rs 6,044 crore, a 106 per cent jump over the previous quarter of FY22. Following this earning outcome, the stock went to set fresh historic peak after 7 years. 

Similarly, Adani Enterprises, owned by billionaire Gautam Adani, reported a double-digit growth by posting 117 per cent jump in net profit for the July-September quarter when compared with the corresponding quarter last year. The company's net surged to Rs 461 crore compared to Rs 202 crore in Q2FY22. The stock has been scaling new all-time highs since then.

The net profit of India’s largest lender, State Bank of India, saw a 73 per cent growth compared to the same quarter last year. In Q2FY23, the public sector bank posted its highest-ever quarterly profit at Rs 13,264 crore, beating street estimates by a wide margin. The stock’s market performance during the same quarter has been impressive, with a gain of 14 per cent. The stock is on investors’ radar since it entered uncharted territory in early August 2022.  

TVS Motor, too, a two-wheeler manufacturer, reported highest-ever quarterly profit in the July-September quarter. The net profit rose by 47 per cent to Rs 407 crore in Q2FY23. The stock of this auto maker has almost doubled since the inception of this calendar year, with majority of the gains emerging in first and second quarter of FY23.

Within the NBFC segment, Bajaj Finance stood out, with its net profit nearly doubling to Rs 2,781 crore, a growth of 88 per cent over the previous year quarter. Shares of Bajaj Finance in Q2FY23 regained the entire lost ground of Q1FY23. 

Going ahead, here’s a technical outlook to help you understand the next likely move of these select Q2 earnings performers:- 

Coal India Ltd (COALINDIA)

Likely target: Rs 280

Upside potential: 21%

After recording a new historic peak in the previous month, shares of Coal India have entered the next bull run from a medium-term outlook. The current bullishness has spot an upside to Rs 280, with an immediate closing basis support at Rs 215. On YTD (year to date) basis, the stock is up 77 per cent and has continued to see an intensified sentiment.  Moving Average Convergence Divergence (MACD), a technical indicator, has rallied in tandem with the stock price, suggesting the momentum has an unceasing support for the upward bias.  CLICK HERE FOR THE CHART

Adani Enterprises Ltd (ADANIENT)

Likely target: Rs 4,500

Upside potential: 11%

While shares of Adani Enterprises appear to be trading in a narrow range of Rs 4,100 to Rs 3,800 levels, the underlying sentiment remains a key driver for the upside bias. As long as the stock protects the bullish bias over the cushion of Rs 3,800 mark, the trend on charts looks to be headed for an up move to Rs 4,500 level. CLICK HERE FOR THE CHART

State Bank of India (SBIN) 

Likely target: Rs 700 (once Rs 620 is crossed)

Upside potential: 12%

Shares of State Bank of India are steadily rising upward since late October this year, and are poised to witness a robust upside if the immediate hurdle of Rs 620 is  taken off. As and when this occurs, the positive bias could see a rally towards Rs 700 level. The trend is likely to remain buoyant as long as the support at Rs 590 is held decisively. The stock price action is clearly highlighting a structural uptrend, with corrective dips being accumulated in light of the exciting prospects ahead. CLICK HERE FOR THE CHART

TVS Motor Company Ltd (TVSMOTOR)

Likely target: Rs 1,300 (only after sustaining over Rs 1,100)

Upside potential: 18%

The present chart texture of TVS Motors seems to eb relatively weak, as the breach of Rs 1,100 has dismantled the upside bias. The trend is losing its bullish momentum and gradually entering the bear grip. However, untill and unless the support of Rs 950 is not slayed, the stock price could regain a positive stance. A sustained move above Rs 1,100 may trigger fresh upside to a new all-time high and even see further reach to Rs 1,300 level. CLICK HERE FOR THE CHART

Bajaj Finance Ltd (BAJFINANCE)

Outlook: Above Rs 7,000, the stock can rally to Rs 7,600

Bajaj Finance shares have a “Descending Triangle” breakdown, suggesting a bearish bias beneath the Rs 7,000-mark. The support for the stock comes at Rs 6,100 mark, which was the breakout point in July this year. The immediate hurdle exists at Rs 6,800 level. Only a sustained move over Rs 7,000 can pull strings to Rs 7,600 level. CLICK HERE FOR THE CHART