Indian stock markets have been extremely volatile so far this year amid geopolitical tensions, and recession concerns. Despite the weakness in global markets, domestic benchmark indices have remained resilient falling around 0.5% so far in 2022, compared to around 20 per cent fall in the US indices. Going forward, Indian markets are expected to continue this outperformance. Analysts believe that Nifty may touch 20000, and Sensex may head to 66000 in Samvat 2079. In the next one year, cement, IT, capital goods stocks are expected to perform well, delivering up to 62% returns, said JM Financial Services in its report
JM Financial’s top Diwali 2022 Muhurat stock picks
Ambuja Cement Ltd
Target price: Rs 800 | SL: Rs 395| Upside: 58%
Ambuja Cement has given a major breakout above 445 level and the stock has seen expansion in volumes post breakout. According to the brokerage report, the stock has formed a bullish flag pattern on daily charts, the targets of which are seen at 600 and 675. “The relative strength chart vs the Nifty is beautifully placed and hints at continuing outperformance. The technical studies are supportive as well,” it said.
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Target price: Rs 1150 | SL: Rs 618| Upside: 43%
Axis Bank seems set to give a major multi-month breakout above 820 in what has been a choppy market in last few sessions. “Relative strength of this bank has been second to the sector leader and we believe this should bode well for this stock. The current breakout can lead us to 4-digit targets in the coming months. Pole & Flag Pattern seen on Quarterly charts and after 5 quarters of consolidation, Axis Bank can deliver good outperformance from current levels,” JMFL said.
Target price: Rs 10000 | SL: Rs 6200| Upside: 38%
The brokerage noted that Bullish Cup & Handle Pattern is seen on weekly and daily charts breakout of which is placed at 7800. “This is the third month of consolidation for the stock and there is a good chance this breakout takes shape considering the strength in Fin Nifty. The stock is sustain above its medium term and long term moving averages and dips can be good buying opportunities,” it said.
Target price: Rs 3020 | SL: Rs 1875| Upside: 36%
Classic Pole & Flag pattern seen on monthly charts which should take the stock beyond its previous life time highs, according to JMFL analysts. “In September month, the stock has closed above its 12 month EMA for the first time in 4 months. Chemicals as a space is expected to do well in the medium term, hence we have included two stocks from this space,” they said.
Target price: Rs 1750 | SL: Rs 1270| Upside: 24%
According to the charts, HDFC Bank is at a crucial flex point on its monthly and weekly time frames. It tested its 200 WMA in the correction that was seen in June 2022 and has managed to hover around its 50 WMA since last three weeks. “Volumes have been lower in recent correction and this should bode well for the bounce back from current levels. Price extension targets are seen at 1600-1740 on the upside. Banks expected to outperform and continue the leadership position in the market,” JMFL said.
Target price: Rs 395 | SL: Rs 185| Upside: 62%
Trading action of the last few weeks suggests that the stock could have laid a solid foundation and is getting ready for the next big move up, noted analysts. The stock is trading and holding above 200 Day Moving Average. Moving average crossover seen on the weekly chart. Pick up in Volume activity in the current uptrend after bottom formation. “RSI is holding above 40 which is strong support level in bull market. Given the relative strength and sector tailwind, we see the stocks as one of the big outperformers in the weeks/months ahead,” the brokerage said.
Target price: Rs 1950 | SL: Rs 1150| Upside: 37%
IT Stocks are expected to do well in the medium term, noted analysts. “Infosys corrected to its major long term support zone of 1355-1370 and since then has been in a steady rising uptrend. It is placed well for its next leg of rally especially after the consolidation of last 15 weeks around 1355-1630,” they said adding that multiple supports for the stock are seen in the range of 1355-1400. RSI is holding above 40 which is strong support level in bull market.
Target price: Rs 455 | SL: Rs 265| Upside: 38%
The stock has consistently outperformed in the FMCG sector, is in strong uptrend and also it is likely to outperform going forward, analysts noted. “Moving average crossover on the weekly chart and the slant is upward sloping. RSI is holding above 40 which is strong support level in bull market,” they said.
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Target price: Rs 900 | SL: Rs 525| Upside: 40%
The stock is trading and holding above 200-DMA. Formation of higher tops and higher bottoms. Moving average crossover sen on the weekly chart. Positive divergence on weekly chart after bottom formation. RSI is holding above 40 which is strong support level in bull market. “The momentum indicators are in trending buy mode. Pick up in Volume activity in the current uptrend after bottom formation. The next phase of the uptrend could have started. This could take the stock back to levels as high as 800 and even beyond,” JMFL analysts said.
Target price: Rs 2650 | SL: Rs 1425| Upside: 39%
Capital Goods sector has relatively remained buoyant in the entire year of 2022 with strong institutional participation in the stock. Trading and holding above 200 Day Moving Average. According to analysts, ratio charts of L&T vs the Nifty hint at continuing outperformance. Multiple supports for the stock are seen in the range of 1750-1800. The stock is likely to resume its underlying uptrend. A retest of life highs and beyond is in the offing, said JMFL report.
Target price: Rs 3200 | SL: Rs 1900| Upside: 35%
Broadly, the stock is in consolidation phase since last six months. It is holding above 200-Day SMA on the weekly chart. Formation of Descending Triangle (Breakout Awaited). Stock took support seen at around previous bottom of 2365-2370 levels and hovering around the same. “It is placed well for its next leg of rally especially after the consolidation of last six months. Volume activity on the way up is expanding whiles the activity on the way down is diminishing,” the brokerage said.
Target price: Rs 1545 | SL: Rs 925| Upside: 33%
Chemical stocks have performed very well in the last few months and most of them are in strong uptrend. Charts show Double Top Breakout above 1160. “RSI is around overbought zone with negative divergence indicating probability of minor profit booking before resumption of current uptrend,” said analysts. The stock is consistently outperforming on Relative strength chart (Tata Chemicals / Nifty) and is in strong uptrend. “We expect the stock to outperform the broader markets and can test 1425/1545 in the next 12 months,” they added.
*Upside calculated from 12 October 2022 closing price
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