Banking Stocks Look Weak But Brokerages Are Bullish On This Private Bank

At the start of this week, Indian stocks saw a massive sell-off on global cues. Markets are expected to stay volatile going ahead, however, experts believe that after the economic shock brought by COVID-19, investors should adopt a stock-specific approach wherein companies with a healthy balance sheet to face the strong winds of an a possible recession should be preferred.

Brokerages are releasing their recommendations based on Q4 numbers, a quarter where most days were spent in lockdown.

Most are inclined towards stocks in the IT, FMCG or Pharma space, however, if one was to pick among banking stocks, brokerages are bullish on ICICI Bank.

International brokerage Jefferies has a "buy" rating on the stock with a price target of Rs 480, pointing out that the leading private-corporate lender has relatively low stress and good capital buffers.

Chartviewindia.in's technical analysis says that as long as the stock sustains above Rs 359 on closing basis, one can remain positive on the counter and look for a decent pull back attempt towards its 200-day moving average.

"Hence, positional traders can buy into this counter with a stop below Rs 359 on closing basis and look for an initial target of Rs 397," said the website's chief strategist.

Earlier this month, LKP Securities placed a "buy" rating on ICICI Bank with a price target of Rs 461.

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