Domestic markets maintained their first gains on Wednesday as investors digested June’s retail inflation data, which fell marginally to 7.01%. The ESB Sensex rose 250 points to 54,147, and the NSE Nifty 50 advanced 60 points to 16,116. In the future, the movement of markets will be guided by key factors of global inflation and interest rates, economic growth, currency movements, corporate performance and technical factors such as REIT fund flows. Volatility remains persistent and experts suggest focusing on issues that will give superior performance opportunities. ICICIDirect analysts chose Bajaj Finance, Suprajit Engineering as their gladiator shares based on technical and derivative data. The brokerage firm projects up to 12% upside potential in the next three months.
Bajaj Finance: buy
Target price: 6,470 rupees; Stop them: 5,490 rupees
On the rise: 10%
Bajaj Finance’s share price has fallen 18 percent so far this year, with a yield lower even at Nifty 50, which has dropped 8 percent so far in 2022. The BFSI space has relatively surpassed the benchmark during the current June low setback. According to ICICIDirect analysts, Bajaj Finance looks lucrative in the current conjuncture of the BFSI space. “The stock has undergone a strong base formation in the vicinity of the 80% retreat of the rally from April to October 2021 (Rs 4362-8050) and currently remains above 50 days EMA. This highlights the rejuvenation of the upward momentum that augurs an extension of the ongoing upward movement, ”they said.
Structurally, Bajaj Finance shares have witnessed a slower pace of decline, as over the past nine months, they have retreated around 80% of the recovery of the previous five months (Rs 4362-8050). “We expect the stock to settle higher and will eventually move towards Rs 6470 in the coming months as it is a 50% decline from the April to June 2022 fall (Rs 7590-5220) coinciding with the 200-day EMA. As for the oscillator, the weekly RSI remains above its nine-period average, highlighting the strength that validates the positive bias, ”they added. The broker recommends buying the shares between Rs 5,850 and Rs 5,940 with a target price of Rs 6,470 and stopping the loss of Rs 5,490 per share.
Suprajit Engineering: buy
Target price: 388 rupees; Stop them: 314 rupees
On the rise: 12%
The car’s auxiliary space has remained resilient over the past two months despite high volatility and is expected to surpass it in the coming months as well. ICICIDirect analysts recommend Suprajit at the current juncture, as it outperformed strong core training to a key 52-week long-term moving average that provides a favorable risk reward setup. So far this year, shares have fallen more than 20% so far this year. The stock price has formed identical funds in the vicinity of 300 rupees, creating a solid foundation that has prepared the ground for the next upward movement in the coming months. In addition, the move above 345 rupees would accelerate the upward momentum, analysts said.
According to the ICICIDirect report, among the momentum oscillators, the weekly RSI has settled above the average of its nine periods, indicating that the momentum is back in action. “We expect the share price to climb to around 390 rupees in the coming months as it is the implication of a break of the 10-week (345-300) core formation as expected from the rupture level of 345 rupees, ”he said. The broker recommends buying the shares in the range of Rs 332-338 with a target price of Rs 388 and stopping the losses of Rs 314, which implies an increase of 12%.
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