As the indices zoom ahead analysts at ICICI Direct have picked two stocks that they believe have strong technical uptrend patterns along with robust fundamentals
Nifty 50 and BSE Sensex have scaled fresh all-time highs and are not looking to slow down. Sensex is now above 60,000 points while the Nifty 50 is closer to 18,000 than ever before. Amid this upward trend, the broader markets have participated with both smallcap and midcap indices mirroring the moves. Bank Nifty too has reached new record highs. As the indices zoom ahead analysts at ICICI Direct have picked two stocks that they believe have strong technical uptrend patterns along with robust fundamentals warranting an upside potential between 10-12%.
Housing Development and Finance Corporation (HDFC) – Buy
Target price – Rs 3,125
HDFC’s share price was moving in a range after February this year before moving up earlier last month. “The stock is on the cusp of generating a breakout above the last seven months range and has recently witnessed a faster retracement of the last falling segment as 24 week’s correction (Rs 2896-2380) is completely retraced in just seven weeks, thus offering fresh entry opportunity,” ICICI Direct said. The brokerage firm expects the stock to move towards Rs 3,125 levels, translating to an upside of 10% from current levels.
On the fundamental front, has demonstrated consistent performance in terms of both business growth as well as asset quality. “We believe with recent pick-up in demand from individual loans for housing is positive for the company being the market leader. We remain positive on earnings visibility given healthy capital adequacy, low funding cost and thus healthy margins,” ICICI Direct said. The trade has been recommended with a three-month time frame.
Phoenix Mills – Buy
Target price – Rs 1,085
Real estate sector stocks have been rallying in recent trading sessions, outperforming the benchmark indices as well. ICICI Direct believes Phoenix Mills to be a key beneficiary of the economy coming back to normalcy, seeing a favourable risk-reward setup for fresh entry. “The stock is coming out of 20 month’s consolidation range on the back of above-average volume signalling resumption of the structural uptrend,” ICICI Direct said. They added that going ahead, the stock is expected to head towards a target of Rs 1,100 in the coming months. The breakout for Phoneix Mills is believed to be well supported by a strong volume of more than three times the 50-week average volume, highlighting larger participation in direction of trend. The time frame for the trade is three months with an upside potential of 12%.
Phoenix Mills develops and operates retail malls in India. The company did see the business being hit by the covid pandemic and resultant lockdowns. However, significant momentum in the near-to-medium term is expected with increased mall operations across India, and pick up on account of the festive season. “Phoenix Mills remains a quasi-play on India’s consumption story, given the quality of assets, healthy balance sheet & strategic expansion plans,” ICICI Direct added.
(The stock recommendations in this story are by the respective research and brokerage firms. Financial Express Online does not bear any responsibility for their investment advice. Please consult your investment advisor before investing.)