All shares of Suprajit Engineering, Bajaj Finance and Hero MotoCorp have received buy calls from brokerage company ICICI Securities. The brokerage has set a target price of 388.00 and purchase limit 332-348 for the shares of Suprajit Engineering. stop loss 314.00 has also been set. The brokerage has set a target price of 6,470.00 and buying range for Bajaj Finance shares 5850-5940 . with stop loss of 5,490.00. ICICI Securities sets target price for Hero MotoCorp Shopping Range of 3350 and With stop loss of 2825-2865 2568. The brokerage has set a target period of three months for all these stocks, and readers should be aware that all recommendations were issued on July 12.
Suprajit Engineering
ICICI Securities has said, “Despite high volatility, the auto ancillary space has remained resilient over the past two months and is expected to outperform in the coming months. We recommend Suprajit at the moment as it provides a favorable risk reward setup by breaking a strong base formation on the key long-term 52-week moving average. Share price has formed similar bottoms in the vicinity 300 is forming a strong base which has set the stage for the next move in the coming months. Furthermore, the move above 345 will accelerate upwards.”
Research analysts at the broking company said that “Among the momentum oscillators, the weekly RSI has resolved above its nine-period average which indicates a return to the stock. We expect the stock price to move higher.” 390 in the coming months as it implies a breakout from the 10-week base formation (345- 300) as predicted from the breakout level 345.”
Bajaj Finance
According to research analysts at ICICI Securities, “BFSI space has outperformed the benchmark during the current pullback to June lows. Bajaj Finance is looking attractive at present. The stock has formed a strong base around the 80% retracement of the April-October 2021 rally ( 4362-8050) and it is currently holding above the 50-day EMA. This highlights the rejuvenation of the upward momentum which bodes well for the extension of the ongoing upward move.”
“Structurally, the stock has seen a slow pace of retracement as it has returned ~80% of the last five-month rally over the past nine months ( 4362-8050). We expect the stock to resolve higher and eventually move up 6470 in the coming months as it is a 50% retracement of the April-June 2022 decline ( 7590-5220) coincides with the 200 days EMA. On the oscillator front, the weekly RSI remains above its nine-period average, highlighting the strength validating the positive bias,” analysts said.
“Its recent quarterly performance was healthy on the business growth front with AUM growth of 31% YoY. We believe that as the FinTech story is embedded in this business, valuations should remain at a premium. Digital web platform similar to app is the new strategy in FY23. The core business of Bajaj Finance has potential and is well on its way to become an adaptable new age fintech. Its digital transformation coupled with strong customer additions as part of OPEX with initial cashback factoring and no impact on profits, to boost profitability,” the analysts further added.
Hero Motocorp
In a note, Dipesh Dedhia, Siddhesh Jain, Nandish Patel and Raj Deepak Singh, Research Analysts, ICICI Securities said that “The auto space has shown stronger resilience than Nifty over the past two months. While the Nifty made a new 52-week low in the June series, the auto sector did not even touch its May low. There was continuous buying in auto stocks. As a result, Nifty Auto surpassed the 2017 high to register an all-time high of 12300. Hero MotoCorp was the laggard in auto stocks. We expect the stock to reverse its underperformance and lead the next leg of the rally.”
“Open interest in the stock was relatively low in the last six months. However, with the recent relative outperformance in the auto space, the stock has seen a gradual build-up of open interest over the past few weeks. Despite recent price performance, there is ample room for further growth in open interest. We believe that new long pairs may be seen, which should propel the stock higher in the coming trading sessions,” the analysts said.
“On the options front, the stock had the highest call base of 2800 since the May series. The stock has managed to sustain comfortably above 2800 over the past few days. Hence, the momentum is being seen closed in that strike. Should sustain. On the positive side. On the put side, 2600 strike after 2700 holds significant OI, which should act as a strong support zone,” said the research analysts.
He further claimed that “the stock witnessed aggressive selling pressure during the second half of February 2022 till the first week of March 2022 and corrected 25% from the high of 2872 to the 52-week low of 2146.” Since then the stock Has recovered from lower levels. On the strength of strong delivery based buying. With the recent close above our resistance area of 2850, we expect the stock to show fresh buying interest. Delivery Z score in Cash segment The readings indicate that there is still room for delivery pick-up in the coming days. The stock should pick up in the times to come.”
The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
catch all business News, market news, today’s fresh news events and breaking news Updates on Live Mint. download mint news app To get daily market updates.