Domestic equity markets have surged higher during the last few trading sessions with benchmark indices hitting fresh all-time highs repeatedly. Sensex is well above 57,400 while the NSE Nifty is placed comfortably above 17,100 at this juncture. With stock markets at all-time highs, some analysts have been suggesting a stock-specific approach as upside may be limited from here on. Technical analysts at ICIC Direct have picked two stocks with strong support on the charts, which they believe can help investors pocket strong returns over the next three months. These include aviation giant InterGlobe Aviation and luggage manufacturer Safari Industries.
InterGlobe Aviation (IndiGo) – Buy
Target price: Rs 2,040 | Stop loss: Rs 1,705
IndiGo’s share price has soared 10% in the last five trading sessions to now trade at Rs 1,900 per share. “The share price of Interglobe Aviation has undergone healthy consolidation over the past 10 months. With past two weeks faster pace of retracement, stock has logged a resolute breakout from 10 month’s consolidation, suggesting a resumption of primary up trend that would help to resolve above the multi-year high of Rs 1898 and eventually shift to a new orbit,” ICICI Direct said.
Analysts at ICICI Direct expect IndoGo stock price to accelerate upward momentum and gradually head towards Rs 2040 in the coming three months as it is 123.6% extension of the April-June rally. The stock has support at Rs 1,705 per share. ICICI Direct recommends buying the stock in the range of Rs 1860-1875 apiece, which implies a 9% upside.
Safari Industries – Buy
Target price: Rs 970 | Stop loss: Rs 745
ICICI Direct highlighted that Safari Industries’ share price has recently generated a breakout above the bullish Cup and Handle formation on the long term chart signalling continuance of up trend. “The stock, in last seven weeks, has been consolidating in range of Rs 840-710 above bullish Cup and Handle breakout area. It is currently on the cusp of breaking above last seven week’s range signalling strength and offers a fresh entry opportunity,” they added.
The target price of Rs 970 per share is the confluence of the previous all-time high of 2018 and the measuring implication of the last seven week’s range breakout. Support for Safari industries is placed at Rs 745 per share. “Weekly 14 period RSI is in up trend & is seen rebounding taking support at its nine period average, thus validating positive bias,” ICICI Direct said.
(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.)