With the end of the decade now just days away, it’s imperative that investors start planning their trades for the coming year if not the decade already.
The brokerage firm has picked up 12 large-cap stocks for investment in 2021, as it sees revival in earnings and expects liquidity and rates to remain supportive
With the end of the decade now just days away, it’s imperative that investors start planning their trades for the coming year if not the decade already. While fundamentally, many might suggest going for the manufacturing sector stocks to gain from the PLI scheme while some might suggest owning banks for the uptick in the economic activity. However, brokerage and research firm ICICI Direct has taken a different approach. ICICI Direct has given its quant picks for 2021 based on Future & Options and Quantitative indicators.
ICICI Direct said that the stock has lower volatility and has seen pick-up in delivery Z score, which suggests ongoing accumulation in the stock. “Biocon has continuously found support near its mean+1*sigma levels. FIIs have also shown faith in the stock and increased their stake continuously in it. Going forward, the positive bias in the stock should remain intact above its mean+1*sigma levels,” the report said. Buying is suggested in the range of Rs 445-465 per share with a stop loss of Rs 385 apiece.
Delivery score for Tech Mahindra has moved up, which according to the report, suggests buying interest at low levels. “Among technology stocks, this is one of the few stocks where FIIs have increased their stake,” ICICI Direct said. Support for the stock is placed at Rs 800 levels, above which the report said that positive bias is likely to continue. Buying is suggested in the range of Rs 900-930 with a stop loss of Rs 775.
Petronet LNG has been seeing lower volatility in the stock along with a sharp increase in delivery Z score, said ICICI Direct, which suggests better risk-reward at current levels. “In the recent market move, the stock was able to move above these levels and should find fresh positive momentum,” they added. Year to date, the stock is down 6%. Buying is suggested between Rs 248-258 with a stop loss of Rs 218.
Bharat Forge has been exhibiting strong delivery volumes while the stock continued to outperform — a sign of aggressive buying in ICICI Direct’s view. “Mean levels for Bharat Forge have acted as trend decider for the stock. It has witnessed significant directional moves after breaching these levels on either direction in the past. The recent up move above | 450 levels is likely to trigger the fresh positive bias in the stock,” the brokerage firm said. Buying is advised in the range of Rs 525-550 with a stop loss of Rs 455.
Volatility in the stock has reduced significantly in recent time favouring an upside. Pick-up in delivery volumes at lower levels suggests healthy upsides expected, the report said. “Bharti Airtel has seen sharp moves last year as it move out of the range prevailing for the last many years. With liquidity flow likely to remain higher, stocks like Bharti Airtel are likely to outperform. Moreover, the stock is likely to remain positive till it holds above its long term mean levels in the coming months,” they added. Buying is suggested in the range of Rs 490-510 with a stop loss of Rs 440.