Domestic brokerage and research firm ICICI Securities believes Nifty index has formed a strong base above the 52-week EMA which has set the stage for a retesting of the upper band of the declining channel at 18,100 mark .
“Meanwhile, the short-term support base for the market has shifted upwards at 16800 mark after a sharp bounce off the lower band of the channel. Therefore, we believe that the downside buying strategy should continue to work in favor of the market participants.”
ICICI Securities’ top stock picks from different regions
BFSI: State Bank of India (SBI), HDFC, Axis Bank, Bajaj Finserv, Bank of Baroda
Technology and Telecommunications: Reliance Industries, Infosys, L&T Infotech (LTI), Mindtree, Persistent Systems
capital goods: L&T, Thermax, Grindwell Norton, SKF India, Siemens
Consumption: Titan, ITC, Bata India, United Spirits, Voltas, Trent
Auto: Tata Motors, Bajaj Auto, Balkrishna Industries, Minda Corp.
Infra and Realty: UltraTech Cement, DLF, Brigade Enterprises, Phoenix Mills.
Pharma: Sun Pharma, Cipla, Divis Laboratories, Laurus Labs
PSU: Concor, BEL, HAL, BEML, Canara Bank
Metal: JSW Steel, Tata Steel, Hindalco, JSPL, NMDC, JSL
Other: ABFRL, Adani Ports, Balrampur Chini, TV18 Broadcast, Easy Trip Planners, JK Paper, Gokuldas Exports, Naveen Florochem.
The overall correction took place in a well-defined falling channel after reaching a lifetime high of 18604 in October 2021. ICICI Securities reported that during March 2022, the benchmark rebounded from the vicinity of the lower band of this channel with a 52-week EMA indicating a declining momentum.
As envisaged in its Technical Strategy for April 2022, the broader market indices maintained a halting secondary correction within 20% and 30%, respectively, within the framework of a structural bull market. “Going forward, we expect the broader markets to exit base formation and catch up with the activity with our large cap peers.”
The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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