9 Technical Stock Picks For 12 Months By ICICI Direct

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Investment
oi-Roshni Agarwal

| Updated: Tuesday, January 4, 2022, 10:01 [IST]

The Indian markets started on a strong footing and likewise considering Cy21 outperformance and the last 3 decades bull cycle, brokerage firm ICICI Direct has come out with a technical outlook for Cy22 and further.

Brokerage’s expectations: Nifty target for Cy 2022 is 21,000

“The Indian equities are in the initial phase of a multi year structural bull market post last year’s resolute breakout above 2018 highs of 12400. Going by the history of three decades, we expect the ongoing bull market to extend for the next few years with multifold gains. Our Nifty target for CY22 is 21000 based on classical chart reading and bottom up prognosis of Nifty constituents, wherein strong support exists at the 15500 zone”.

“While the midcap space is expected to extend its outperformance, we expect IT to lead the rally supported by cyclicals like Capital goods, BFSI, Real Estate and Auto”.

Key observations on studying last 3 decades mega bull run

-There have been three mega bull cycles in past 35 years, each measuring at least 2x price wise from major breakout and lasting for three to four years time wise.

-We expect Nifty to head towards 24800 by CY24, based on empirical evidence * In our 2018 outlook, we had focused on mega bull trend in Indian equities, wherein we have envisaged target of at least 17600 by CY22 that has been achieved Ongoing bull cycle resembles the CY03-07 bull market on multiple counts:

– BSE200 index (dollar terms) breaking out of decadal consolidation similar to CY04

– Relative performance ratio of Nifty equal weight index with Nifty50 (free float weight), which measures broad based nature of the rally, is on the cusp of reversal from multi-year downtrend, first instance since CY04

-Multiple sectoral indices like metal, capital goods, realty have managed to resolve out of 10-12 year long consolidation, indicating the structural turnaround and broad based nature of the ongoing bull cycle.

– Relative outperformance of Midcap Universe is in mid-cycle of multi year bull phase. We expect this outperformance to get further amplified

-Indian equities are expected to relatively outperform Emerging Markets as verified by multi year breakout on relative charts

-Going by history, the US and Indian equities have continued their structural bull phases even in times of interest rate hikes in US starting 1993, 2004, 2015

Techno-funda top picks-12 months time

Stock

Buying range

Target price

Upside

HCL Technologies 1230-1285 Rs. 1485 17.00%
United Spirits 850-910 Rs. 1080 22.00%
ABB India 2160-2240 Rs. 2750 25.00%
Aditya Birla Fashion and Retail 265-285 Rs. 360 31.00%
Indian Hotels 170-182 Rs. 238 34.00%
SKF India 3520-3700 Rs. 4700 29.00%
Jindal Stainless 182-196 Rs. 240 24.00%
TCI 680-740 950 34.00%
Gabriel India 128-136 175 33.00%

Disclaimer:

Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage houses are not liable for any losses caused as a result of decisions based on the article. The above article is for informational purposes only.

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