Domestic brokerage and research firm ICICI Securities believes, that the Nifty index has formed a strong base above 52 week’s EMA that has set the stage to retest the upper band of falling channel at the 18,100 mark.
“Meanwhile, post a sharp bounce from lower band of channel, the short-term support base for the market has shifted upwards to the 16800 mark. Hence, we believe buying on decline strategy should continue to work in favour of market participants,” the brokerage’s note stated.
ICICI Securities’ top stock picks from different sectors –
BFSI: State Bank of India (SBI), HDFC, Axis Bank, Bajaj Finserv, Bank of Baroda
Technology & Telecom: Reliance Industries, Infosys, L&T Infotech (LTI), Mindtree, Persistant Systems
Capital goods: L&T, Thermax, Grindwell Norton, SKF India ,Siemens
Consumption: Titan, ITC, Bata India, United Spirits, Voltas, Trent
Auto: Tata Motors, Bajaj Auto, Balkrishna Inds, Minda Corp
Infra and Realty: Ultratech Cement, DLF, Brigade Enterprises, Phoenix Mills.
Pharma: Sun Pharma, Cipla, Divis Laboratories, Laurus Labs
PSU: Concor, BEL, HAL, BEML, Canara Bank
Metal: JSW Steel, Tata Steel, Hindalco, JSPL, NMDC,JSL
Others: ABFRL, Adani Ports, Balrampur Chini, TV18 Broadcast, Easy trip Planners, JK Paper, Gokuldas Export, Navin Fluorochem.
The entire correction after hitting life-time highs of 18604 in October 2021 occurred in a well defined falling channel. During March 2022, benchmarks rebounded from the vicinity of lower band of this channel coinciding with 52 week’s EMA, signifying a pause in downward momentum, ICICI Securities highlighted.
As envisaged in its Technical Strategy for April 2022, the broader market indices maintained the rhythm of arresting secondary correction within 20% and 30%, respectively, within the framework of a structural bull market. “Going ahead, we expect broader markets to resolve out of base formation and witness catch up activity with its large cap peers.”
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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