Indian markets were trading volatile on Friday amid mixed global cues ahead of the US jobs report. Benchmark index Nifty 50 was flat below 17,550 levels, whereas the S&P BSE Sensex was trading at 58,740 levels. Broader markets, on the contrary, were outperforming frontline indices as Nifty Midcap 100 and Nifty Smallcap 100 surged up to 0.5%. Sectorally, Nifty Media, Nifty Realty, and Nifty Auto indices traded with marginal gains. However, Nifty Metal, Nifty PSU Bank were bogged down in trade. Amid high volatility, analysts advise investors to adopt a stock specific approach to pocket gains. ICICIDirect in its report picked Asian Paints and Garden Reach Shipbuilders & Engineers as their gladiator stock picks as they see up to 13% upside in these stocks in the next three months.

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Asian Paints
Buying range: Rs 3370-3435 | Target: Rs 3740 | Stop loss: Rs 3190
Upside 9%

Asian Paints share price has rallied over 14% in the last six months. According to analysts at ICICIDirect, the share price is in a well-established secular uptrend and has generated stable returns for long term investors on a consistent basis over the past many years. “The stock after the last two week’s breather is witnessing buying demand from the support area of Rs 3200-3250 as it is the confluence of the recent breakout area and the rising 10 week’s EMA. The current decline in crude oil prices also provides support to the bullish stance, thus providing a good entry opportunity,” they said.

According to the brokerage report, the stock has recently completely retraced its six month’s decline in just two months. A faster retracement in less than half the time interval signals strength and a robust price structure. “We expect the stock to maintain positive bias and head higher towards Rs 3740 as it is the 161.8% external retracement of the last two week’s breather,” it said adding that weekly MACD is in strong up trend and is seen diverging from its nine period’s average, thus supporting the positive bias.

Garden Reach Shipbuilders & Engineers
Buying range: Rs 295-307 | Target: Rs 348 | Stop loss: Rs 273
Upside 13%

The stock has rallied 41% so far this year, outperforming Nifty 50 index. Defence PSUs have remained resilient and are seen outperforming the broader markets. Many stocks from the defence space have generated a breakout above their multi-year consolidation phase, indicating a structural turnaround. Within this space, ICICIDirect analysts remain constructive on Garden Reach Shipbuilders as it has generated a breakout above a falling supply line joining the highs of April & May 2022 with strong volume of more than double the 100 week’s average volume. “This signals continuance of the uptrend and offers a fresh entry opportunity,” they said.

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According to the brokerage report, the 52-week EMA has acted as strong support in the last two years and provided incremental buying opportunity. In the current scenario also, buying demand has emerged in the last two months after a base above the 52 weeks EMA. “We expect the stock to head higher towards Rs 348 in coming months as it is the price parity with the previous major up move of February-April 2022 as projected from June 2022 low of Rs 208,” ICICIDirect report said.

(The stock recommendations in this story are by the respective research analysts and brokerage firms. FinancialExpress.com does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.)