Stocks to buy: Charts suggest Titan and Abbott India shares are gearing for breakout, check target prices

Titan and Abbott Indian could be two shares that investors can add to their portfolio for gains over the next three months, said analysts at ICICI Direct.

Stocks to buy
Sensex and Nifty continue to dance between gains and losses on a daily basis. (Image: REUTERS)

Titan and Abbott Indian could be two shares that investors can add to their portfolio for gains over the next three months, said analysts at ICICI Direct. The brokerage firm has picked the two stocks as gladiator stocks, projecting a 10% upside potential as one of the stock readies for a technical breakout, meanwhile the other has provided a breakout above the falling channel, analysts say, which augurs well for an up-move. Sensex and Nifty continue to dance between gains and losses on a daily basis, faced with headwinds including inflation, rising interest rates, elevated commodity prices and much more. 

Titan Company Ltd: BUY
Target price: Rs 2,480 per share
Upside: 10%

Analysts at ICICI Direct believe that the long-term price structure of consumer discretionary stocks remains positive and recent profit booking offers a fresh entry opportunity with a favourable risk-reward set-up. “Our preferred pick within the consumer discretionary space is Titan Company. We expect it to outperform as it has registered a breakout above a falling channel containing last three month’s decline, signalling a resumption of the up move, thus offering a fresh entry opportunity,” said ICICI Direct. They expect the stock to outperform as it has registered a breakout above a falling channel containing last three month’s decline. 

“Buying demand is seen emerging in then stock from the support area of Rs 1800-1900 as it is the confluence of rising 100 week’s EMA (currently at Rs 1945), which has historically acted as strong support in the last decade and the 61.8% retracement of the previous major rally of May 2021 to October 2021 (Rs 1400-2677) signalling overall positive structure,” analysts said. The target price has been set at Rs 2,480 per share, translating to an upside of 10% from Tuesday’s levels. Buying has been recommended in the Rs 2,200-2,250 range with a stop loss at Rs 2,045.

Abbott India: BUY
Target price: Rs 21,900 per share
Upside: 10%

ICICI Direct said that Abbott India’s shares are on the cusp of a breakout from the consolidation range that signals the resumption of an up-move. “Within MNC pharma companies, Abbott India is our top pick as the stock has been resilient in the recent market correction and is on the cusp of generating a breakout above the last six month’s range signalling resumption of up move and offers a fresh entry opportunity,” they added.

Analysts have noted buying demand in the stock from the support area of Rs 15500-16000 as it is the confluence of rising demand line joining lows of CY20 and CY21 and rising 100 week’s EMA. “We expect the stock to maintain positive bias and head towards Rs 21900 levels in the coming months as it is the 80% retracement of the entire decline ( Rs 23934-15514),” they added. Buying has been recommended in the Rs 19200-19750 range with a stop loss at Rs 17630. 

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