Top Stock Picks: 7 Stocks To Buy For Good Returns In 3 Months Says ICICI Securities

ICICI Securities, a domestic brokerage company, has revealed its Quant Pick report, recommending Coal India as its top stock pick to buy in a target range of Rs 190-194 with a target price of Rs 270 and a stop loss of Rs 171 in a three-month time frame. Apart from Coal India, Bharti Airtel, Navin Fluorine, Indusind Bank, Tata Motors, HDFC Life, and Granules have also received a buy call rating from the brokerage.

ICICI Securities has said "While the Nifty remained largely range bound, broader markets continued to move higher. Even in the Nifty, low weighted stocks from the metals & mining space are witnessing continued buying at every decline and fared better than index heavyweights. We believe the continuing participation from low weighted stocks should persist. We expect renewed buying in stocks like Coal India that has been consolidating for a couple of weeks after a sharp up move was seen in commodity prices."

The brokerage also highlighted that "The open interest in Coal India has been declining gradually in the last couple of months. It has come down to the lowest in the current series since June 2021 while the stock has been trading with a positive bias. We believe short positions are out of the system and fresh longs are likely to be seen from here onwards, which should lead to a swift further up move in the stock towards Rs 230 levels. On the options front, after significant writing in 190 Call, the highest Call OI base is at the 200 strike for the March and April series. However, closure is visible across Call strikes. With initial signs of closure among Call writers, we expect the stock to be well placed to surpass its Call base of Rs 200. On the other hand, writing was seen in 180, 175 Put strikes that should act as support on downsides."

From the initial days of the March series, the stock witnessed noteworthy delivery based activity near Rs 170-180 levels. Since then, it has been trading with a positive bias above Rs 170. We believe this accumulation will maintain positive momentum in the stock above said levels. The delivery Z-Score has again started to move into the positive territory since March 2022 as the stock is witnessing fresh accumulation in the delivery segment," ICICI Securities has further noted.

Quant Picks: Open recommendations By ICICI Securities

Stocks	Action	Recommendation Price In Rs	Target price in Rs	Stop Loss In Rs	Time Frame
Bharti Airtel	BUY	700-717	815	649	3 months
Navin Fluorine	BUY	3950-3985	4625	3610	3 months
Indusind Bank	BUY	905-925	1078	830	3 months
Tata Motors	BUY	428-438	515	389	3 months
HDFC Life	BUY	518-528	598	476	3 months
Granules	BUY	308-314	363	284	3 months
Coal India	BUY	190-194	230	171	3 months
Source: ICICI Securities. Data as of March 28, 2022