Trading Guide: ICICI Bank among 7 stock recommendations for Wednesday
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, ETMarkets.com|
1/8
Stock Ideas
Benchmark Sensex and Nifty slid for the eighth straight day to close at four-month lows on Tuesday as growing worries over interest rate hikes to stem inflation and FII selling unnerved investors. Mixed global cues, selling in index heavyweights and caution by investors ahead of the release of key macroeconomic data waylaid the key indices to their longest losing run in more than three-and-a-half years.
From the high of 18,134 scaled on February 16, Nifty has corrected by a sharp 5% in the past 9 sessions and closed below its 200 days SMA at 17,304 points.
Sector-wise, it was a mixed show, with media, realty, banking and auto pack ending in the green, while pharma, IT, metals, FMCG and financial services stocks fell.
“Finally, the bears managed to drag the Nifty below the line of polarity, the 200-day moving average, on a closing basis. The sentiment looks very negative from here as the index sustains below the crucial long-term average. A further decline towards 17,150–17,100 appears imminent, as bulls appear to be in no hurry to support Indian equities. On the higher end, immediate resistance is visible at 17,400, above which the current trend may reverse,” said Rupak De, Senior Technical Analyst at LKP Securities.
The stock is seen to be retesting the breakout of a downwards sloping parallel channel pattern on the daily timeframe with above average volume. The supertrend indicator is also indicating a bullish trend, which can be used as a support for the bullish view. Momentum oscillator RSI (14) is at around 50 on the daily time frame indicating strength
(Mitesh Karwa, Research Analyst, Bonanza Portfolio)
The pharma stock is seen to be making higher-high higher-low formation on the daily timeframe and is seen to be closing with a strong bullish candle on the daily timeframe. The supertrend indicator is signalling a bullish continuation. Momentum oscillator RSI (14) is at around 55 on the daily time frame indicating strength by sustaining around 50, the 200 EMA is at Rs 419 and the stock is comfortably trading above it.
(Mitesh Karwa, Research Analyst, Bonanza Portfolio)
Agencies
4/8
Gujarat State Petronet: Buy near Rs 280 | Target: Rs 310 | Stop Loss: Rs 266
With sustained move above key averages, the stock has witnessed its highest close in the recent past. The sustenance above Rs 280 is likely to unlock upside potential till Rs 310 zone.
The stock has seen marubozu candle closing, which means more buyers interested in taking the stock up. As long as Rs 835 is intact on downside, we could see prices moving towards Rs 900 or higher levels.
IndiaMart is trading in the green zone, closing above previous day’s high indicating positivity. Strong breakout above Rs 4,860 is awaited on the upside. On the downside, the middle Bollinger band on a daily basis could act as support near Rs 4,715 levels.
The sharp down trend in the stock seems to have completed, as the stock price has bounced up sharply on Tuesday. We observe an upside breakout of the sideways range movement at Rs 2,830 levels. The current chart pattern signals possible completion of the bearish trend and a formation of an important bottom reversal for the stock price at the low of Jan 2023. Volume has started to rise during the upside breakout and daily RSI shows positive indication.
Buying can be initiated in DIXON at CMP (Rs 2,890), while adding more on dips down to Rs 2,775. The upside target of Rs 3,130 should be awaited in 3-5 weeks. A stop loss can be placed at Rs 2,700.
(Nagaraj Shetti, Technical Research Analyst, HDFC Securities)
ETMarkets.com
8/8
Bajaj Finserv March Future | Sell at CMP Rs 1,346 | Target: Rs 1,265 | Stop Loss: Rs 1,420
After showing a range-bound movement in the last few sessions, the stock in the cash segment has witnessed a downside breakout of the range pattern. The present chart pattern indicates an intermediate downtrend in the stock price and this also signals completion of minor upside bounce of the early-mid part of February. Daily and weekly RSI shows negative indication.
One may look to add more on rise up to Rs 1,380 and wait for the downside target of Rs 1,265 in 3 weeks. A stop loss can be placed at Rs 1,420.
(Nagaraj Shetti, Technical Research Analyst, HDFC Securities)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)