2022 is ending on a positive note for the market with the benchmarks set to close the year with around 4 percent gains each. However, it hasn't been an easy ride in a year of the Russia-Ukraine war, rising inflation, rate hikes, concerns regarding global growth and more. As we step into 2023, global factors like recessionary fears, geo-political risks and rising Covid cases in China could keep the equity markets volatile, say experts.
Amid this backdrop, domestic brokerage house Prabhudas Lilladher has come out with 3 technical stock picks for the medium term. Let's take a look.
CMP: ₹1,510 | Target: ₹1,660 | Stop Loss: ₹1,440
The brokerage has a ‘buy’ call on the IT major with a target price of ₹1,660, indicating an upside of 10 percent.
"The stock after the short correction has consolidated and taken support near the ₹1,500-level which is almost the 50 percent retracement of the recent rally and indicating some improvement in the bias with the RSI also flattening out near the oversold after the correction has indicated signs of reversal with upside potential visible. With a decisive move past the significant 50-EMA and 200-DMA levels of ₹1,550 would further strengthen the trend to anticipate for further upward targets. With the chart looking good, we recommend a positional buy in this stock for an upside target of ₹1,660 keeping a stop loss of ₹1,440," explained the brokerage.
The stock has fallen over 20 percent this year as against a 26 percent fall in Nifty IT. Fears of recession in major economies and aggressive monetary policy measures to stabalise inflation have dissipated the excitement around the IT space. After performing superbly post the COVID pandemic, the sector has been in a slump in the last 1 year.
The stock shed over 7 percent in December after around 14 percent rise in November and October combined. In the 12 months of the year, the stock has given negative returns in 8 and positive returns in just 4.
However, from its 52-week low of ₹1,355.50, hit in September this year, the stock has rebounded over 11 percent.
CMP: ₹51.7 | Target: ₹63 | Stop Loss: ₹46
The brokerage has a ‘buy’ call on this finance stock with a target price of ₹63, indicating an upside of nearly 22 percent.
"The stock after forming the double top formation has slipped with a short correction witnessed and has taken support near ₹45 zone to indicate a pullback. The bias has improved with a sustained upward move and with the RSI also showing a trend reversal has immense upside potential visible. With the risk-reward ratio favorable and chart looking good, we recommend a positional buy in this stock for an upside target of ₹63 keeping a stop loss of ₹45," said the brokerage.
The stock has gained 31 percent this year. It has shed around 2.5 percent in December after a massive 47 percent jump in November. In the 12 months of the year, the stock has given negative returns in 5 and positive returns in 7.
However, from its 52-week low of ₹30.60, hit in February this year, the stock has rebounded 70 percent.
CMP: ₹181.80 | Target: ₹200 | Stop Loss: ₹172
The brokerage has a ‘buy’ call on this bank stock with a target price of ₹200, indicating an upside of nearly 10 percent.
"The stock is in a strong upward trend and after the short correction recently has taken support near the significant 50EMA level of ₹165 and indicated a trend reversal with a decent pullback improving the overall bias on the daily chart. The RSI has shown a trend reversal with potential visible on the upside to indicate strength and can carry on the momentum still further. We suggest to buy this stock for an upside target of ₹200 keeping the stop loss of ₹172," noted the brokerage.
The stock has given multi-bagger returns this year, up 125 percent in 2022. It has gained over 86 percent in the last 6 months, between July and December. In the 12 months of the year, the stock has given negative returns in just 3 months and positive returns in 9.
From its 52-week low of ₹79.6, hit in December last year, the stock has rebounded 128 percent.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.