ICICI Bank, Kotak Bank, Manappuram & Sanofi: Brokerages see up to 18% upside in these stocks

Domestic brokerage firms including Ashika Stock Broking, ICICIDirect Research and SMC Global are positive on the select stocks, namely- ICICI Bank, Manappuram Finance and Sanofi India- the ongoing volatility in the broader markets. The brokerage firms believe that these stocks are headed for a strong upside in the near term on the basis of their sound technical setup. Here is what the brokerage firms have to say:

ICICI Bank | Target Price: Rs 956 | Upside Potential: 9%
The share price of ICICI Bank is seen resuming its primary up trend as buying demand is seen emerging after a higher base around the support area of Rs 825-830 being the confluence of the 50-week EMA and the 38.2 retracement of the previous major up move (Rs 642-958) thus offers fresh entry opportunity. Among the oscillators, the daily 14 periods RSI has recently generated a buy signal moving above its nine-period average and is seen sustaining above the same signalling positive bias. Hence one can expect the stock to resume up move and head towards Rs 956 levels in the coming sessions.
Recommended by: Ashika Stock Broking

Manappuram Finance | Target Price: Rs 138-142 | Stop Loss: Rs 108 | Upside Potential: 18%
After taking support, near the Rs 100 level in the month of February 2023, Manappuram stock made a strong comeback, as prices were seen recovering towards 115 levels, in a short span of time. The recovery has been observed with a move above its 200-day exponential moving average on daily charts. At the current juncture, stock can be seen trading in a rising channel with the formation of a higher bottom pattern. Additionally, a fresh breakout has been observed on the charts above the inverted head & shoulder pattern. Therefore, one can buy stock in the range of Rs 120-124 levels for the upside target of
Rs 138-142 levels with stop loss below Rs 108 levels.

Recommended by: SMC Global

Kotak Mahindra Bank | Target Price: Rs 1,910 | Stop Loss: Rs 1,605 | Upside Potential: 10%
Kotak Mahindra Bank’s share price has approached the maturity of price/time correction and offers a favourable risk-reward setup at the current juncture. Structurally, the share price has retracted its 19-month rally post Covid lows by just 50 per cent over the past 17 months while digesting various negative news flows on the domestic and global stage. A shallow price retracement is a sign of inherent strength over the long term. The share price has held the key support of Rs 1,640 on three occasions during this period making it a key support that coincides with a long-term rising 24-month average that has been held on numerous occasions over a decade. On the volume front, the share price has witnessed the highest trading volumes at key support since October 2021 indicating institutional buying near the key support zone. We expect the share price to gradually head towards Rs 1,930 in the next few months as it is 80 per cent of the November 2022-March 2023 decline.
Recommended by: ICICIDirect Research

Sanofi India | Target Price: Rs 6,400 | Upside Potential: 12%
Sanofi India remains constructive as it has registered a breakout above the falling supply line joining highs since April 2022 signalling end of a corrective phase and resumption of the up move thus offering a fresh entry opportunity. Buying demand is seen emerging in the stock after a base formation around Rs 5,300 signalling an overall positive price structure now the stock is on the verge of providing a breakout above the 38.2 per cent retracement level of the entire rally since October 2008. Sustaining above which changes the outlook to positive. Hence one can expect the stock to continue with its positive momentum and head towards Rs 6,400 levels in the coming weeks.
Recommended by: Ashika Stock Broking

ICICI Bank | Target Price: Rs 970-975 | Stop Loss: Rs 815 | Upside Potential: 10%
ICICI Bank has been consolidating in a broader range of Rs 820-875 levels since the last two months, as prices can be seen fluctuating around its 200-day exponential moving average on daily charts. Last week, the stock gave a consolidation breakout above the key resistance levels of Rs 875 with larger volumes. Alongside fresh breakout has been observed above the neckline of the Inverted head & shoulder pattern, visible on daily charts. Therefore, one can buy stock in the range of 875-877 levels for the upside target of Rs 970-975 levels with a stop loss below Rs 815 levels.
Recommended by: SMC Global

Lemon Tree Hotels | Target Price: Rs 90| Stop Loss: Rs 71 | Upside Potential: 15%
Within the hotel sector, we remain constructive on Lemon Tree Hotels as it has formed a major base around the key support area of Rs 70-73 and is currently on the cusp of generating a breakout above the last three month’s triangular consolidation, thus offering a fresh entry opportunity with favourable risk-reward set up. Buying demand is seen emerging from the key support area of Rs 70-73 as it is a confluence of the 52-week EMA and the 80 per cent retracement of the previous up move of September-December 2022 and has already taken 17 weeks to retrace just 80 per cent of its preceding 14 week’s rally. A shallow retracement signals a robust price structure and a higher base formation. We expect the stock to resume up move and head towards Rs 90 levels being the 61.8 per cent retracement of the entire previous decline.
Recommended by: ICICIDirect Research

Also read: As AEL, Adani Transmission, Adani Green shares fall on Sebi probe, Adani group m-cap drops Rs 10,800 crore

Also read: Multibagger stock recovers after 10 sessions of losses; zooms 17% in early trade