Domestic stock markets have seen a sharp up-move in recent days after the US Federal Reserve hiked interest rates in expected lines and corporate earnings on Dalal Street. Analysts at ICICI Direct said that over the past one month, they have observed that rallies are now getting bigger along with shallow correction, indicating structural improvement that makes analysts confident to upgrade their Nifty target from 16600 to 17500 in the month of August. Meanwhile, 16500 is seen as a support for the Index. The brokerage firm has also filtered out some stocks that they believe are growing stronger on the charts. These include Container Corporation of India, Cipla, and Deepak Nitrite, among others.
Container Corporation of India: BUY
Target price: Rs 774 | Upside: 12%
Container Corporation is ICICI Direct’s techno-fund stock picks where they argue that the stock’s faster retracement augurs well for the next leg of up move. “PSU stocks have been showing rejuvenation of upward momentum after undergoing price and time-wise correction. Within the space we remain constructive on Container Corporation of India as it has witnessed a faster retracement of the last falling segment as five weeks decline was completely retraced in just 2 weeks signalling improved price structure and offers fresh entry opportunity,” analysts said.
The stock has witnessed the emergence of buying demand from the support area of Rs 580-600 per share. “We expect the stock to maintain positive bias and head towards Rs 774 levels in the coming months as it is the 138.2% external retracement of the April-May 2022 decline,” analysts said. Container Corporation of India’s share price opened at Rs 690 per share on Friday. The trade has been recommended with a 3-month timeline.
Deepak Nitrate: BUY
Target price: Rs 2020 | Upside: 5%
Analysts said that the share price of Deepak Nitrate has generated a breakout above the last six weeks range signalling the resumption of an up-move and offers a fresh entry opportunity. “Buying demand is seen emerging in the stock after a base formation around the major support area of Rs 1680-1700 levels being the confluence of the 100 weeks EMA (currently at Rs 1755) and the 61.8% retracement of the previous major rally of CY21 (Rs 944-3020). The stock offers 5% upside from Friday’s opening levels. Stop loss has been recommended at 1755 per share for the trade with a timeline of 14 days.
Taj GVK Hotels & Resorts: BUY
Target price: Rs 166 | Upside: 8.5%
ICICI Direct noted that breakout above the rounding formation of the last two months signals the resumption of up-move and offers a fresh entry opportunity. “The breakout is supported by strong volume of more than three times its 50 days average volume of 1 lakhs share per day highlighting larger participation at the breakout area. We expect the stock to head towards Rs 166 levels in the coming sessions being the 80% retracement of the May-June 2022 decline. Stop loss at Rs 141 per share has been advised by ICICI direct for the trade with a time line of 14 days.
Target price: Rs 1050 | Upside: 10%
The pharma stock has been resilient within the sector over past several months while benchmarks underwent decent correction. “In current week stock price has resolved above its downward trend line resistance indicating resumption of uptrend after two-month healthy corrective phase and offers fresh entry opportunity,” analysts said. With a stop loss of Rs 922 per share, a 30 day time line as been recommended for the stock.