2 Stocks ICICI Direct Gives A Buy For Quick Gains

In line with Asian markets, indices in trade on September 13, 2021 by over 200 points on the Sensex, while the broader markets outperformed and traded with some positive bias. Meanwhile, brokerage firm ICICI Direct has come out with 2 momentum picks today for gains in the short term:

1. BSE Limited:

The brokerage is bullish on the exchange for a target price of Rs. 1345 that implies gains of over 8% considering current market price of Rs. 1250.7. The stop loss recommended for the stock is Rs. 1170. The buy on the scrip is suggested for 14 days.

Technical observations:

BSE's share price has registered a break-out above the falling channel and limited last two month corrective pattern that signals resumption of up move and offers fresh entry opportunity. The brokerage expects the stock to continue with its positive momentum and head towards Rs. 1345 levels as it is the 80% retracement of recent decline (Rs. 1410-1024)

Also there is witnessed a slower retracement which signals a positive price structure and a higher base formation. The weekly stochastic has recently generated a bullish crossover above its three periods average thus validates positive bias in the stock.

2. Care Ratings:

The rating agency company has been a given 'Buy' for 7 days and suggested a target price of Rs. 760. The stock last traded at a price of Rs. 725 per share, implying gains of 4.83%.

Technical observations for the scrip by ICICI Direct

"The share price of Care Rating has rebounded after a higher base formation at the lower band of rising channel in place since March 2021 and 20 weeks EMA signaling resumption of the up move and offers fresh entry opportunity", as per the brokerage. ICICI Direct sees the stock of CARE Rating to begin up move and head towards Rs. 760 levels as it is the 80% retracement of last decline (Rs. 791-640).

The major highlight to point out is that the stock of Care Ratings has witnessed shallow retracement as its has retraced just 38.2% in 10 weeks against an up move of preceding 12 weeks (Rs. 433-791), signaling inherent strength. The weekly RSI has generated a bullish crossover above its nine periods average thus validates positive bias in the stock".

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Disclaimer:

The stocks are momentum picks of ICICI Direct for short term and not a recommendation for investments or trade in them.

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