Making money is never easy and this is why even despite the huge risk involved, investors have in great deal taken on to equities to make quick gains. The penchant for equities has increased even more during the pandemic time as other than the ideal time people are left with owing to the work from home regime, they are cashing on opportunities to make a secondary income
So, here are 2 'Buy' recommendations by the country's most esteemed brokerage house ICICI Direct
1. Accelya India Solution India:
ICICI Direct in its brokerage report on July 12 recommended a buy for this mid cap IT stock at a price of Rs. 1430 for a target of Rs. 1660 per share, implying an upside of over 16%. The stop loss suggested for the trade is Rs. 1250. Last the stock at the time of writing this copy traded at a price of Rs. 1460.8.
Accelya is a leading provider of technology solutions to travel and transport sectors. The company leverages the power of technology, data and industry expertise to propel your organization forward.
Strong volume support will help the IT midcap to outperform and sustain upward price trend
The IT space has been key outperforming sector over a year now. Within this space Accelya Solution has been underperformer in midcap space. In the current month the stock has resolved out of 3 year long bullish reversal bottom formation, indicating turnaround and makes us believe that stock will catch up and outperform in coming months, said the brokerage firm in its report.
We expect the stock to head towards target of Rs. 1660 being 80% retracement of entire 2017 to 2019 decline( Rs. 1890-701). Structurally, after 3 years of consolidation the stock has witnessed breakout with significant volume expansion, signalling a bullish turnaround in price structure and longevity of uptrend.
Note the duration targeted for the target price is 3 months.
2. UltraTech Cement:
The buy has been recommended for this Aditya Birla Group cement company at a price of Rs. 6875 for a target of Rs. 7770, i.e. a 13% upside. The company has advised a stop loss of Rs.6318.
Infra push amid recovery is giving impetus to cement stocks too
Amid economic rebound, stocks from infrastructure space are doing very well and cement stocks are no exception. The brokerage firm in its report said "select stocks from the infrastructure sector may witness renewed momentum amid a sustained broader market recovery. Cement stocks like UltraTech Cement are likely to perform better in the coming trading sessions along with the ongoing recovery in sectoral peers like Ambuja Cement and ACC".
Since May 2021, UltraTech has taken support near Rs. 6600-6700 levels on multiple instances. Also, looking at the significant delivery volume activity in May 2021 and then in mid-June 2021, these levels seem very crucial. In such a scenario, the positive bias may continue in the stock till these levels are held.
The stock in a year's time has yielded return to the tune of 87.8% while Sensex during the same time has provided absolute return of 43.62%. In today's trade (July 13, 2021), the stock has hit 52-week high price of Rs. 7160 per share on the NSE and is up for the third consecutive day today.
The above mentioned Stock buy calls are taken from the brokerage report of ICICI Direct. Neither the author, the brokerage nor Greynium Information Technologies would be responsible for losses incurred based on the article. Please consult a professional advisor. Investing in stock markets is risky.