State Bank of India, Mindtree, India Energy Exchange, and Ambuja Cement are among the 8 stocks that analysts at ICICI Direct believe could beat the current market volatility.
State Bank of India, Mindtree, India Energy Exchange, and Ambuja Cement are among the 8 stocks that analysts at ICICI Direct believe could beat the current market volatility. Domestic markets have been nervous recently with geopolitical tensions escalating, sending the India VIX index 41% higher in February alone. Analysts at ICICI Direct have now singled out 8 stocks that they believe have enough technical and fundamental backing to cruise through this high volatility period and help investors pocket returns over the next three months.
On the technical front, analysts at ICICI Direct believe 16200 will act as strong support. “Holding above the same would keep pullback options open. Further, a decisive close above 16800 along with cool off in VIX and crude oil prices will add fuel to the ongoing pullback rally towards 17200,” they added.
State Bank of India
Target price: Rs 545 per share | Return: 13%
ICICI Direct said that the uptrend is well defined by stronger rallies and shallow retracements — key ingredients of a major bull phase. “During this phase, incremental buying demand is getting attracted at a five-month average, held since November 2020 and even in the recent correction. The overall outlook for the bank remains positive as the bank has got a healthy pipeline to aid business growth, while sufficient provision buffer should avoid any earnings shock.
Mindtree
Target price: Rs 4,148 per share | Return: 8%
The stock is seen to be forming a potential double formation in the vicinity of long term 52 weeks EMA, offering a fresh entry opportunity with favourable risk-reward. “The stock has undergone a slower pace of retracement as over the past four months it retraced less than 50% of prior six weeks rally (1951- 4938), indicating inherent strength that bodes well for the next up move,” analysts said.
Ambuja Cement
Target price: Rs 348 per share | Return: 13%
On the charts, cement stocks have witnessed shallow retracement in the last two quarters and are currently seen rebounding, taking support at the previous major multi-year breakout area thus offering fresh entry opportunities. Analysts said that Ambuja Cement stock’s shallow retracement signals a robust price structure and a higher base formation.
Balkrishna Industries
Target price: Rs 2,010 per share | Return: 10%
Balkrishna Industries is linked to the auto ancillary space which has witnessed profit booking in the last two months after the stupendous rally of 2021. “The share price of Balkrishna Industries is currently placed near the key support area of Rs 1700-1800 as it is the confluence of the lower band of rising channel and 80% retracement of previous rally thus offering entry opportunity,” analysts said.
Aditya Birla Fashion & Retail
Target: Rs 305 per share | Return: 14%
The stock has zoomed past its six-year consolidation phase, signalling a structural turnaround and a new bull cycle ahead. “The stock is currently seen forming a higher base above the long term breakout area signalling strength. We expect stock price to head towards | 305 levels as it is 80% retracement of the recent breather,” ICICI Direct said. Aditya Birla has aggressive store addition plans for FY23E with 80+ Pantaloons stores and 400+ (franchisee) lifestyle brand stores.
Indian Energy Exchange
Target: Rs 232 per share | Return: 13%
The stock is expected to regain upward momentum, and head towards Rs 232 as it is 50% retracement of the January-February decline. “The stock has already taken four months to retrace just 80% of its preceding two months up move. A shallow retracement signals a robust price structure and a higher base formation,” analysts at ICICI Direct said. ICICI Direct said that the company has a debt-free balance sheet with cash and investments to the tune of ~ Rs 700 crore and is focused on introducing new products in the near future.
Grindwell Norton
Target price: Rs 1800 per share | Return: 13%
Chartists said that over the last two months the stock has seen shallow retracement of preceding six quarters of strong up move. “We expect the stock to resume up move and head towards Rs 1800 levels in coming months as it is 61.8% retracement of the recent breather,” they added. Grindwell Norton is the market leader in the India abrasive market with ~26% market share.
Balrampur Chini Mills
Target price: Rs 445 per share | Return: 12%
Sugar stocks have recently had a positive track record on the bourses. Analysts believe that Balrampur Chini Mills after the last one month’s breather is seen forming higher base around the last year highs placed around Rs 380 levels. The stock has managed to hold above upward sloping support trend line joining lows since March 2020, highlighting elevated buying demand that signifies inherent strength.