Stock To Buy & Sell: ICICI Direct Picks These Two Large & Mid Cap Stocks For Short Duration

ICICI Direct in its weekly report has picked two stocks, IndusInd Bank (INDBA) and Ipca Laboratories (IPCLAB) with a "Buy" & "Sell" rating for short-term upside-down. IndusInd Bank is a banking sector large-cap company (having market Cap - Rs 94,081.96 crore) and Ipca laboratories is mid cap Pharmaceuticals sector company (having market cap - Rs 21,175.42 crore). Here we have highlighted the key details of the stocks including the brokerage's comments:

Buy - IndusInd Bank (INDBA)

ICICI Securities has assigned a "Buy" on the stock with a target price of Rs 1,334.5 apiece with a stop loss of Rs 1174.5 apiece. The brokerage sees January future in the range of Rs 1215-1225 apiece. The Brokerage claims 10% potential upside in the share price, considering the current market price and the given target price.

The current market price (CMP) of the stock is Rs 1221.25 apiece. The stock hit the 52 week low at Rs 763.20 apiece and the 52-week high at Rs 1,275.80 apiece, respectively. The stock is trading near its 52 week high.

The stock surged 2.08% in a week, and 3.55% in 1 month, respectively. In the past 3 months, it gave 2.99% positive return. Over the past 1 year, the stock gave 37.43% positive return. Whereas, in the past 3 and 5 years, the stock fell 20.17% and 25.75%, respectively.

Brokerage's comments

Banking stocks have been in focus during the recent leg of the market up move. Among banking stocks, IndusInd Bank is likely to perform well as it managed to close above its sizeable Call base of Rs 1200 on the settlement day. The stock witnessed selling pressure during the second week of December but on the back of delivery-based buying, it quickly recovered from lower levels and gave a weekly close above its hurdle zone. On the options front, aggressive OI addition was seen in ATM and near ATM Put strike, which should cap the downside. With limited downside view, we expect fresh buying interest to help IndusInd Bank to move towards Rs 1340 level.

Sell - Ipca Laboratories (IPCLAB)

The brokerage places "Sell" on IPCLAB's stock. It sees January future in the range of Rs 848-858. Assigns Target price of Rs 775.5 apiece with a Stop Loss of Rs 895.5 apiece on the stock.

The current market price of the stock is Rs 836.65 apiece. The 52 week high is Rs 1,128.50 apiece, and its 52 week low is Rs 830 apiece, respectively. Stock is trading near the 52-week low.

Over the week, the stock has fallen 1.57%. It fell 3.88% in 1 month and 8.76% in 3 months, respectively. In the past 1 year, it fell 22.94%. However, in the past 3 years, the stock has given 46.31% positive returns and in the past 5 years, it has given 184.18% multibagger returns.

Brokerage's comments

Ipca Laboratories has been a laggard vis-à-vis the broader markets over the past couple of months. Even when we saw a recovery in the pharma space, the stock failed to attract any buying. Delivery-based selling continued to higher levels. On the futures front, we observed short rollover for the new series, which is a negative sign. Furthermore, the quantum of Call writing is greater than the quantum of Put writing, suggesting a limited upside. Hence, we expect the stock to continue its underperformance and test Rs 750 level in the coming week.

Disclaimer

The stocks have been picked from the brokerage report of ICICI Direct. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.