BSE Sensex and NSE Nifty 50 are expected to witness increased volatility this week as global markets await what the US Federal Reserve FOMC decides.
BSE Sensex and NSE Nifty 50 are expected to witness increased volatility this week as global markets await what the US Federal Reserve FOMC decides. So far, Sensex and Nifty have fluctuated between gains and losses this week as sales from foreign investors continue. India VIX is above 26 levels. Analysts suggest taking a stock-specific approach during these times. Domestic brokerage firm ICICI Direct has singled out two stocks that analysts believe have the technical strength to perform well in the short term. The brokerage firm has chosen ITC and Graphite India, with an upside expectation of anywhere between 12-15%.
Target price: Rs 265 per share
Analysts at ICICI Direct have chosen ITC as their quat pick with a three-month timeline. The stock is expected to rise, aided by short investor coverage. ICICI Direct said Nifty is now expected to enter a consolidation phase where stocks like ITC could take the next big step. “It’s likely it will retest its October highs in the coming weeks,” they said. “ITC has seen a significant close of open interest where the rest of the market is witnessing continued short add-ons,” she added.
ICICI Direct said ITC has witnessed the close of open interest since the December series with the current open interest rate one of the lowest in nearly a year. The stock’s current rally is supported by significant delivery-based activity, the highest since October last year when ITC peaked near Rs 260 levels, said ICICI Direct. The time frame for trading is given as 3 months.
Graphite India: Buy
Target price: Rs 568 per share
Graphite India is also among the stocks selected by ICICI Direct. Analysts said the buying demand emanating from the long-term average offers a new entry point with a favorable risk-reward structure. Charts suggest that the Nifty metal index is on the cusp of a breakout. “We expect metal stocks to continue their relative outperformance. The preferred choice within the mid-cap metal stocks is Graphite India, which has already undergone a price-time correction and is currently witnessing buying demand from the key support area of Rs 430-460, providing a new entry point with a favorable risk-reward set up,” said ICICI Direct.
Graphite India is expected to move towards Rs 568 per share in the coming months as it is the confluence of the January 2022 high and 50% retracement of the previous major decline. The transaction is given for a period of three months.
This post Stocks to buy: ITC, Graphite Indian among technical bets chosen by ICICI Direct, check the target price was original published at “https://www.financialexpress.com/market/stocks-to-buy-itc-share-price-graphite-india-volatility-icici-direct-target-price/2461682/”