2 ICICI Direct Gladiator Stock Picks For Good Gains In 3 Months

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Investment
oi-Roshni Agarwal

| Updated: Wednesday, April 27, 2022, 11:56 [IST]

Indian markets opened on a weak note tracking subdued sentiments globally. Investors are moving on to risk-off sentiment as covid cases in China are on the rise as well as the global growth concerns remain.

Amid such a market mood, ICICI Direct has come out with 2 gladiator stock picks:

Jamna Auto: Buy for Rs. 132 target price:

ICICI Direct has selected the stock as a ‘Buy’ for 3 months for a target price of Rs. 132. The suggested stop loss is Rs. 103. In trade on April 27, 2022 the stock has surged to a share price of Rs. 119.3 and has at around 10:54 am trended lower.

Brokerage’s view on the stock:

The stock has been resilient during the recent market correction 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

Key observations:

The 20 weeks EMA has acted as strong support for the stock on multiple occasions since July 2020 and has provided incremental buying opportunity. It is seen rebounding taking support at the vicinity of the 20 days EMA, thus offering a fresh entry opportunity “We expect the stock to extend thecurrent up move and head towardsRs.132 levels in the coming months as it is the 123.6% external retracementof entire previous decline (Rs. 125-95). The weekly 14 period’s RSI has generated a buy signal moving above its nine period’s average, thus supporting the positive bias”, claims the brokerage.

Bandhan Bank:

Buy for 3 months for a target price of Rs. For the new age lender, the company has set out a target of Rs. 390 to be realised in 3 months. The stock has last been trading at Rs. 333.40. The stop loss suggested for the trade is Rs. 310

ICICI Direct’s view on Bandhan Bank: Breakout about last 15 months falling channel signals upmove:

The Bank Nifty has relatively outperformed the Nifty during the recent corrective phase within which Bandhan Bank has been resilient and has been outperforming the Bank Nifty since the beginning of CY22. The stock has generated a breakout channel and is seen sustaining above the same signalling resumption of upmove and offers a fresh entry opportunity.

Key observations:

The stock has almost completely retraced its
five month’s decline (Rs. 354-230) in just three months. A faster retracement signal positive price structure. “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)

Disclaimer:

The above stocks are taken from the brokerage report of ICICI Direct. Readers should not construe the report as an investment advice into the aforementioned stocks.

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