Domestic brokerage and research firm ICICI Securities has shared its Techno Funda stock picks, suggesting eight quality stocks that investors can buy amid the recent stock market volatility. The brokerage sees this market correction as an opportunity for investors to connect companies with sustainable growth visibility.
ICICI Securities’ top stock picks Include State Bank of India (SBI) with a target price of 545, Mindtree (Target Price: 4,148), Ambuja Cement (TP: 348), Balkrishna Industries (TP: 2010), Aditya Birla Fashion & Retail (TP: 305).
Indian Energy Exchange (IEX) with target price 232, Grindwell Norton (TP: 1,800) Balrampur Chini (TP: 445) are also part of the brokerage’s top recommendations with a time frame of three months.
On the technical front, going forward, the brokerage believes that 16200 will act as a strong support for Nifty, and holding it above will keep pullback options open. Moreover, according to ICICI Securities, a decisive close above 16800 along with a cool off in VIX (volatility index) and crude oil prices will add fuel to the ongoing pullback rally towards 17,200.
“Since April 2020, the time-wise index has maintained a trend of not correcting for more than three consecutive weeks. In the current scenario, as the index has already corrected over the past three weeks, we believe Nifty is poised for a technical pullback rally. Coming weeks,” the note added.
Heightened geopolitical issues have pushed up crude oil prices and VIX has created volatility in the equity markets. Fundamentally, the medium to long term constructive thesis on Indian equities remains intact amid the economic recovery, as reflected by key macroeconomic indicators, strong capital expenditure and strong corporate earnings.
The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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