HomeFinanceCharts suggest Jamna Auto, Bandhan Bank stock may be gearing for up-move;...

Charts suggest Jamna Auto, Bandhan Bank stock may be gearing for up-move; ICICI Direct sees 16% upside

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Domestic markets have been dancing between gains and losses for the last couple of sessions. So far this week, S&P BSE Sensex is down 0.3% now trading around 57,200 points while the NSE Nifty 50 index is down 0.4%, hovering at 17,100. Meanwhile, India VIX, the volatility gauge has shot up 9.3%, breaching the 20 levels. Analysts have been suggesting stock-specific action while volatility remains high. Amid this, analysts at ICICI Direct have picked two stocks as their gladiator picks, predicting as much as a 16% upside within a three-month time frame. These two stocks are Jamna Auto and Bandhan Bank. 

Jamna Auto: BUY
Target price: Rs 132 per share | Upside: 14%

The stock has soared nearly 16% in the last one month and has outperformed most auto ancillary stocks. “It is currently seen resuming its fresh up move after a higher base in the last three months above the rising 20 weeks EMA (currently at Rs 104) and the multi-year rounding formation breakout area placed around Rs 100 levels, signalling a structural turnaround,” said ICICI Direct. The brokerage firm added that the stock is offering a fresh buying opportunity taking support at the vicinity of the 20 days EMA.



Analysts expect the stock to rally to Rs 132 per share, suggesting an upside of 14% from today’s opening price of Rs 113 per share. ICICI Direct said investors can buy the stock in Rs 111-116 range and a stop loss at 103 has been suggested.



Bandhan Bank: BUY
Target price: Rs 390 per share | Upside: 16%

The banking stock is up 12.5% in the last one month while the Bank Nifty has traded flat with a positive bias. “The stock has generated a breakout above the last 15 month’s falling channel and is seen sustaining above the same, signalling resumption of up move and offers a fresh entry opportunity,” ICICI Direct said. “We expect the stock to maintain positive bias and head towards Rs 390 levels in the coming months as it is the 80% retracement of the entire major decline (Rs 430-230),” they added.

The target price suggests a 16% upside potential. Buying has been advised in the Rs 337-343 range with a stop-loss at Rs 310 per share. 





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