1 Multibagger Power Infra And 1 Oil & Gas Stock To Buy For 3 Months: ICICI Direct

Indices in trade on April 21, 2022 are trading firm with Nifty trading at above 17250 levels and seen scaling to 17,300. Meanwhile, ICICI Securities has come up with stock recommendations for a short term of 3 months.

Here are the 2 stock buy ideas by the highly acclaimed brokerage:

Genus Power Infrastructures: Buy for 15.5% upside

This is a multibagger scrip and in a year has provided a return to the tune of 131%. The electricals segment company is into manufacturing and distribution of electronic energy meters, power distribution management projects, hybrid microcircuits, inverters, batteries, home UPS and online UPS in India and abroad. The product range of the company entails Metering Solutions- Under this, they manufacture residential meters, industrial meters, grid meters, group meters, AMR solutions, reference meters, special meters and Software for electricity management server.Inverters/UPS- Under this, the company manufactures batteries, solar products, UPS and inverters.The company also is into engineering construction and contracts and also manufactures hybrid micro units.

ICICI Direct has recommended to buy the scrip for a target of Rs. 121 that from the current price of Rs. 104.7 implies gains of over 15.5% in a short term of just 3 months. The stop loss for the scrip is Rs.92.

View on the scrip of Genus Power:

The breakout above multi-year highs provides for structural turnaround iterates the brokerage. In all of the time frames, BSE Power index after a period of consolidation has now formed a higher high low. The scrip in the infra power segment has given a decade long breakout. Historical evidence provides that a large breakout of this order is followed by 30-40% upside in the upcoming quarters.
"The breakout is accompanied by strong volumes of more than double its 12 month's average volume of 2.5 crore signalling strong participation in the directionof uptrend", notes the brokerage.

Indian Oil Corporation: Buy for 15.5% upside, target of Rs. 155 in 3 months

ICICI Direct has chosen IOC as its Quant pick and suggested a "Buy" on it in the price range of Rs. 130-134 for a target of Rs.155 in 3 months. The stop loss that needs to be applied here is Rs. 118.5.

Derivatives and Quantitative Outlook:

"From the oil & ga sspace, stocks are garnering significant buying interest on the back of a surge in international oil & gas prices. We believe stocks like IOC will resume their fresh uptrend after hovering in a small range for the last few months. We believe therecent accumulation seen in the stock will be followed by fresh longs in the coming sessions The stock has been witnessing accumulation near the support level of Rs. 120. With continued Put writing in 125 and 120 strikes, we expect downside risk to be limited. The stock has seen one of the highest delivery based action around Rs. 115 in March on account of exclusion from the

Nifty. Moreover, high OI seen in the stock can also be attributed to the exclusion. Since then, it has been crawling northwards with early signs of the stock moving out of the prevailing range", adds the brokerage.

Disclaimer

The above stock recommendations are taken from the ICICI Direct report. Any market linked investment calls need to be taken after careful analysis by self or in consultation with the professional. The report should not be construed as an investment advice.