By Vinay Rajani
With just a few days left for the all-important event of the Indian financial calendar, we expect Banking, NBFC, Auto and selected commodity chemical companies to perform well for the short term, especially ahead of the union budget. We have selected the stocks from these sectors and most of them are already out with their quarterly results which have been above expectations. After analysing recent price and volume action, we have shortlisted following stocks:
Buy ICICI Bank (797): | Target Rs. 850 | Stop-loss Rs 760
Stock has been in to running correction mode for last 7 trading sessions. Primary trend of the stock has been bullish with higher tops and higher bottoms. Stock is placed above all important moving averages, which indicates bullish trend on all time frames. Banking as a sector has been outperforming for a while and technical setup of Bank index is much stronger than Nifty. Stock is developing “flag” kind of pattern on the daily chart.
Buy Bandhan Bank (321): | Target Rs. 345 | Stop-loss Rs 307
Stock has reclaimed its level above all important moving averages. Stock has remained resilient during the recent downswing in the Market. Stock has broken out from the downward sloping trend line on the daily charts. Banking as a sector has been outperforming for a while and technical setup of Bank index is much stronger than Nifty.
Buy Maruti (8801.85): | Target Rs. 9390 | Stop-loss Rs 8400
Stock has broken out from bullish cup and handle pattern on the daily charts. Price breakout is accompanied with jump in volumes. Stock has started outperforming other auto stocks. Indicators and oscillators have turned bullish on daily and weekly charts
Buy Bajaj Finance (6855): | Target Rs. 7400 | Stop-loss Rs 6650
Stock has witnessed healthy correction from the recent swing high of 8045. Stock has now reached crucial support of its 200 days EMA, placed at 6682. In Dec 2021, Stock found support on 200 days EMA and turned north. Primary trend of the stock has been bullish with higher tops and higher bottoms on weekly charts. Short term Oscillators have turned oversold and we can expect sharp pullback in the coming days.
Buy Gujarat Alkalies (704.20): | Target Rs. 760 | Stop-loss Rs 675
On 12th Jan 2022, Stock broke out from cup and handle pattern on the daily chart. Price breakout was accompanied with rising volumes. Stock surpassed the double top resistance placed at 682. From the recent top of 757, stock witnessed running correction, which can be considered throwback towards the previous breakout levels. Primary trend of the stock has been bullish with higher tops and higher bottoms. Stock is trading above all important moving averages. Indicators and oscillators are showing strength in the current uptrend.
(Vinay Rajani is Senior Technical & Derivative Analyst at HDFC Securities. The views expressed are the author’s own. Please consult your financial advisor before investing.)