The domestic brokerage and analysis company ICICI Securities believes that the Nifty index has formed a strong base over the 52-week EMA, which has laid the foundation for testing the upper band of the falling channel at the 18,100 mark.
“Meanwhile, after a sharp bounce from lower channel bands, the short-term support base for the market has been moved up to the 16800 mark. Therefore, we believe that the strategy to buy in the event of a downturn should continue to work for the benefit of market participants,” the brokerage noted. .
ICICI Securities’ best stock choice from different sectors –
BFSI: State Bank of India (SBI), HDFC, Axis Bank, Bajaj Finserv, Bank of Baroda
Technology and 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
Car: Tata Motors, Bajaj Auto, Balkrishna Inds, Minda Corp
Infra and Realty: Ultratech Cement, DLF, Brigade Enterprises, Phoenix Mills.
Drug: 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 reaching the life heights of 18604 in October 2021 took place in a well-defined fall channel. In March 2022, benchmarks recovered from the vicinity of lower bands of this channel, coinciding with the 52-week EMA, indicating a pause in declining momentum, ICICI Securities pointed out.
As envisaged in its technical strategy for April 2022, the broader market indices maintained the rhythm of stopping secondary correction within 20% and 30% respectively within the framework of a structural bull market. “Going forward, we expect broader markets to emerge from base formation and witness activity catching up with its competitors in large companies.”
The views and recommendations above are from individual analysts or brokerage firms, and not from Mint.
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