After declining for 2 consecutive months, Indian markets have risen around 1 percent in February so far. In comparison, it fell 2.4 percent in January and 3.5 percent in December.
Now that the Union Budget and the subsequent RBI Policy is over, the market participants will now continue to focus on Q3 earnings, which have been in line so far led by banks and financials.
Going ahead, experts expect markets to remain volatile in the near term following FPI selling, however, the Indian equity market is likely to perform well over the medium to long term on account of its robust economic outlook.
Amid this backdrop, domestic brokerage house Prabhudad Lilladher has come out with 2 technical pick ideas for the medium term. Let's take a look.
CMP: ₹1,635 TARGET: ₹1,800 STOP LOSS: ₹1,555
The brokerage has a buy call on the stock with a target price of ₹1,800, indicating an upside of 10 percent.
"The stock has corrected well and has indicated a double bottom formation pattern on the daily chart taking support near the 1550 zone and has given a decent pullback moving past the 200DMA level of 1610 to improve the bias. Further rise is anticipated, with the RSI indicator also pulling back from the highly oversold zone and has signaled a buy. With the chart looking attractive, we suggest that you buy and accumulate this stock for an upside target of ₹1,800 levels, keeping the stop loss at ₹1,555," said the brokerage.
The stock has fallen over 4 percent as against a 2 percent rise in Nifty. In February so far, the stock has risen nearly 4 percent after an 8 percent fall in January.
The stock has fallen 10 percent from its 52-week high of ₹1,839, hit in December 2022. It had hit its 52-week low of ₹1,276, in June 2022.
BUY HIND COPPER
CMP: ₹108.4 TARGET: ₹123 STOP LOSS: ₹103
The brokerage has a buy call on the stock with a target price of ₹13.4 percent.
"The stock has witnessed a decent correction from 132 levels and has touched the low near the long-term trendline support zone of 103 levels. With a positive bullish candle visible forming a “Morning Star” on the daily chart to improve the bias, we anticipate a further rise in the coming days. The RSI indicator has indicated a trend reversal from the highly oversold zone to make it more attractive and has signaled a buy. With the risk-reward favourable and chart looking attractive, we suggest that you buy and accumulate this stock for an upside target of ₹123 levels, keeping the stop loss at ₹103," explained the brokerage.
The stock has fallen 21 percent as against a 2 percent rise in Nifty. In February so far, the stock has shed over 13 percent after a 12 percent rise in January.
The stock has advanced 33 percent from its 52-week low of ₹81, hit in June 2022. It had hit its 52-week high of ₹146, in February 2022.
Nifty Technical View
The brokerage noted that Nifty after recovering from the lows made near the 17,400 zone has finally moved past and closed above the 17,800 zone to improve the sentiment and bias to some extent with midcap stocks witnessing active participation along with select frontline heavyweights. The index further a decisive breach above 18,000 would establish further conviction and can expect for a directional move further ahead in the coming days.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.