With Sensex and Nifty taking a10% and 9% cut on a YTD basis, there is a view that as and when the geo-political crisis shall settle, the focus shall again shift to interest rate hike by the US central bank and inflation. Now, amid the sell-off spree, domestic brokerage firm based on technicals has come up with momentum recommendations as a buy for a time period of 3-6 months.
Here are the stocks together with the rationale and target price as given by the brokerage house:
"During this ongoing geopolitical issue the stock seems to outperform which suggests relative strength. On the daily scale; the stock has turned from its 200 DEMA and 200 DSMA placed near 650 mark. Thus, we advise traders to buy the stock as per the given trade setup with a time horizon of 3 - 6 months," the brokerage stated.The stop loss suggested is Rs. 570. Also, the brokerage added that the stock has retested its previous parabolic line breakout zone.
"We saw the data from 2016 and found that whenever the RSI of ICICIBANK went below 30 mark there has been a bottom formation most of the times and this time too the RSI is below 30," the brokerage house said. The brokerage for the trade has suggested Rs. 570 as stop loss.
For the commercial auto player, the brokerage mentions that the stock is trading in a broad-range of Rs. 3000-2200 since January 2021. "Currently, it is resting at the lower end of this range. It is the placement of 200 EMA and 200 SMA on the weekly scale", Anand Rathi added. Stop loss of the scrip is suggested to be Rs. 1950
For the auto stock, the brokerage has set a target of Rs. 8500, while the stop loss given out is Rs. 6070 per share. The given chart of Maruti Suzuki indicates that the stock has been trading in a broad range of 9000 - 6500 since Jan 2021. Currently, it is resting at the lower end of this range. It is the placement of 200 EMA and 200 SMA on the weekly scale and also the previous demand zone, Anand Rathi said.
At this point in time it is approaching the 78.6% retracement level of the rally which started from 170 to 380. Also, it is approaching the zone from where the rally started due to its merger with Sony, the brokerage highlighted. It has a target price of ₹280 and stop loss of ₹180. Further, in the last 2-3 months, the stock has come down by almost 40% from its high of Rs. 378.
"Along with other FMCG stocks; BRITANNIA too has been in a corrective mode since few months. The demand zone coincides with the placement of 200 EMA and 200 SMA on the weekly scale," the brokerage note added. It has a Buy rating with target price of ₹3,900 and stop loss of ₹2,740.
|Stock||Current market price||Target price||Upside|
|Bharti Airtel||Rs. 675.3||Rs. 800||18.46%|
|ICICI Bank||Rs. 645.7||Rs. 800||24%|
|Eicher Motors||Rs. 2170.9||Rs. 2800||29%|
|Maruti Suzuki||Rs. 6582.3||Rs. 8500||29%|
|Zee Entertainment||Rs. 230.4||Rs. 280||21.50%|
|Britannia||Rs. 3900||Rs. 3064.6||27%|
The stocks suggested as a buy are as taken from the brokerage report of Anand Rathi and the market has come down substantially lower, further there is seen more correction likely ahead. So take your call accordingly.