Top Stock Picks 2022: 8 Quality Stocks To Buy As Suggested By ICICI Securities

The domestic brokerage company ICICI Securities has placed a buy call on eight quality stocks that it thinks would achieve their individual target price in three months, despite the fact that equity markets volatility remains unchanged notwithstanding economic stimulus as evidenced by critical macroeconomic measures. The brokerage claims that the stocks mentioned below will achieve their target price throughout a three-month target period.

Techno Funda Top Picks By ICICI Securities

1. State Bank of India: Target price- Rs 545
2. Mindtree: Target price Rs 4,148
3. Ambuja Cement: Target price Rs 348
4. Balkrishna Industries: Target price Rs 2,010
5. Aditya Birla Fashion & Retail: Target price- Rs 305
6. Indian Energy Exchange: Target price Rs 232
7. Grindwell Norton: Target price Rs 1,800
8. Balrampur Chini: Target Price Rs 445

ICICI Securities has said "The escalated geopolitical issues have led to a spike in crude oil prices and VIX which triggered volatility in the equity markets. We believe crude trajectory will be the key to watch, going ahead. Amid the sharp rise of Brent crude breaching US$100/barrel levels, the economic growth trajectory faces a risk amid a rate hike cycle around the corner. Therefore, we do not expect any major sanctions by US/Europe, as it could have wider economic ramification for them also."

The brokerage has noted "The stabilisation of crude or relatively milder sanction, in our view, will be key driver for global equities recovery in the short term. From economic perspective, we believe risk of higher dependency for utilities/trade in one country is now at the forefront. Thus "Plus one" policy push will accelerate globally, largely benefitting economies such as India, which is in a sweet spot amid PLI and other initiatives by the government."

As per brokerage "On the technical front, going ahead, we believe 16200 would act as a strong support. Holding above the same would keep pullback options open. Further, a decisive close above 16800 along with cool off in VIX and crude oil prices will add fuel to the ongoing pullback rally towards 17200. Time wise index has maintained the rhythm of not correcting for more than three consecutive weeks, since April 2020. In the current scenario, as the index has already corrected over past three weeks, we believe Nifty is poised for a technical pullback rally in the coming weeks."

"Fundamentally, medium to long term constructive thesis on Indian equities remains intact amid economic recovery as reflected by key macroeconomic indicators, strong capex spends and robust corporate earnings (Nifty earnings growth likely at 21.5% CAGR in FY21-24). We continue to see this correction as an opportunity for investors to add companies with sustainable growth visibility," ICICI Securities further noted.