Indian markets have seen correction for the past 4 days after hitting 18600 high on the Nifty, weakness has been lurking in the broader markets too. Also, in the past week, we saw institutions selling stocks and a host of companies' have come up with muted earnings for the second quarter of the FY22.
Amid such an environment, HDFC Securities has suggested to buy a banking major. Notably, the bank Nifty on Friday a new high and there is hailed a view that Bank Nifty shall offer direction to the Nifty.
1. ABB India:
This is one infra sector stock recommended for gains of 11%. The stock's recommended target price is Rs. 2120. ABB is given a buy for a period of 3 months and the stop loss suggested is Rs. 1750.
After showing a larger range bound action for the last seven weeks, the stock price has witnessed a sustainable upside bounce in this week so far.
The stock price is currently making an attempt to stage upside breakout of the sideways consolidation at Rs 1930-1940 levels.
A larger degree of higher bottoms is intact on the weekly chart and the recent swing low of Rs 1790 could be considered as a new higher bottom of the sequence.
Volume has started to expand while the stock price shows upside breakout of the hurdle.
Weekly 14 period RSI has turned up from near 60-62 levels, which signal further strengthening of upside momentum for the stock price ahead. The overall chart pattern of ABB indicate a long trading opportunity.
2. Indian Bank:
The buy call has also been given on Indian Bank for a target price of Rs. 205. This implies gains to the tune of 12 percent from the current price level of Rs. 182.5 per share.
Stock has broken out from ascending triangle on the weekly charts.
Stock price has shown throwback towards previous breakout levels, which can resume primary uptrend after running correction.
Nifty PSU Bank Index has broken out from medium term downward sloping trend line on the weekly charts.
Stock price has surpassed the previous two tops on the weekly chart Price breakout is accompanied by higher volumes.
Primary trend of the stock has been bullish with higher tops and higher bottoms Stock has been holding levels above its medium to long term moving averages
The above stocks are picked from the brokerage report of HDFC Securities. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.