After a weak September, Indian markets rebounded to rise around 6 percent in the month of October. The rally was led by positive global cues like softening of crude prices, robust festival demand as well as an improvement in the overall economic situation.
Furthermore, on the last working day of October, the broader Nifty50 index also reclaimed its 18,000 mark. However, certain headwinds like the US Fed's hawkishness, neutral FII inflows, and fears of the recession continued to hover around the domestic markets.
In the near term, experts believe that the Indian market will continue to follow the Q2FY23 earnings and macroeconomic data. While FII flows may remain volatile and the market witness higher volatility in the near term if pressure on the rupee continues, the Indian equity market is likely to perform well over the medium to long term on account of its robust economic outlook.
With this backdrop, domestic brokerage house Prabhudad Lilladher has come out with 2 technical pick ideas for the medium term. Let's take a look.
BUY Gland Pharma
CMP: ₹1,880 TARGET: ₹2,300 STOP LOSS: ₹1,700
The brokerage has a buy call on the stock with a target price of ₹2,300, indicating an upside of 22 percent.
"The stock has made a decent correction from the higher levels of ₹4,332 to ₹1,680 where it has taken support and has almost made a double bottom formation pattern in the daily chart. The RSI indicator also is recovering from its oversold zone and hence we recommend a positional buy in this stock for an upside target of ₹2,300 keeping a stop loss of ₹1,700," recommended the brokerage.
The stock has lost 50 percent of its investor wealth in the last 1 year and crashed 53 percent in 2022 YTD. In the 10 completed months of 2022, it has tanked in 8 of them. It has given double-digit negative returns in 5 of those 8 months.
The scrip fell the most in July 2022, down 16 percent followed by in October, down 15 percent. However, it rose up 5 percent in August and 0.3 percent in March.
While the stock is in the green in November till now, up 1.5 percent, it has been in the red for the past 2 consecutive months (September-October), down 25 percent in just 2 months.
It hit its 52-week high of ₹4,060 on January 6, 2022, but then started correcting to hit its 52-week low of ₹1,681 on October 31, 2022. Between this period, it shed 58.5 percent.
CMP: ₹720 TARGET: ₹780 STOP LOSS: ₹690
The brokerage has a buy call on the stock with a target price of ₹780, indicating an upside of over 8 percent.
"The stock has made a steep correction from ₹1,145 to bottom out at around ₹660 levels and now has made a strong recovery with RSI bouncing back indicating a trend reversal signalling a buy in this stock. We recommend a buy in this stock for the upside target of ₹780 keeping a stop loss of ₹690," advised the brokerage.
The stock has lost 27 percent in the past 1 year as well as in 2022 YTD. In the 10 completed months of 2022, it has given negative returns in 7 of them. The scrip fell the most in February 2022, down 13 percent followed by in March, down 9 percent. However, it rose the most in July, up 10 percent.
While the stock is in the green in November till now, up half a percent, it has been in the red for the past 3 consecutive months (August-October), down 17 percent in 3 months.
It hit its 52-week high of ₹1,081 on January 11, 2022, but then started correcting to hit its 52-week low of ₹665 on October 14, 2022. Between this period, it shed 38.5 percent
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.