Weekly Stocks: ICICI Direct suggests three shares with 8% upside potential to buy this week

Estimated read time 10 min read

Indian stock market: On Tuesday, May 28, the Indian stock market remained under pressure, with the benchmarks—the Sensex and the Nifty 50—closing in the red for the third straight session.

The Indian stock market has experienced significant volatility this month due to substantial foreign capital outflows driven by election-related caution. The market has fluctuated between gains and losses, influenced by a lack of new catalysts, high valuations, and mixed global signals.

Also read: Stock market today: Sensex, Nifty 50 fall for 3rd consecutive session; investors lose nearly 3 lakh crore in a day

“We maintain our positive bias and expect Nifty to head toward our earmarked target of 23400 in the coming weeks. The. The key point is that the Nifty has recorded a breakout from three months of consolidation backed by faster retracement as it entirely retraced the past nine weeks of consolidation (22800-21700) in just two weeks. The faster pace of retracement exhibits a robust price structure that bodes well for the extension of ongoing moves. In the process, we expect volatility to remain high as we approach the fag end of the General election phases coupled with the Q4 earning season. We believe the focus should be on the big picture, as we are in a structural uptrend. The anxiety will subside post-event, and markets will follow its structural up trend. Retracement of the rally would thus provide a buying opportunity. Therefore, investors should focus on building portfolios and ride the uptrend as immediate support is placed at 22400,” brokerage firm ICICI Direct said in a note.

ICICI Direct has suggested Chennai Petroleum Corporation, PNB Housing and Tata Power to buy this week with an upside potential of up to 8%.

Stocks to buy

Chennai Petroleum Corporation: Buy at 940-963 | Target Price: 1035 | Stop Loss: 908

Elevated buying demand at 100-day EMA, held Since August 2023, suggests inherent strength and a further northward journey in coming sessions.

Also read: Nifty to surpass 26,500 level by December 2025: Emkay Investment Managers

PNB Housing: Buy at 775-790 | Target Price: 848 | Stop Loss: 749

A falling trendline breakout and higher base formation above the 50-day EMA bodes well for the next leg. Up move.

Tata Power: Buy at 438-449 | Target Price: 480 | Stop Loss: 431

Higher base above 20 day EMA amid rising channel suggest robust price structure.

Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.

You are on Mint! India’s #1 news destination (Source: Press Gazette). To learn more about our business coverage and market insights Click Here!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint.
Download The Mint News App to get Daily Market Updates.


Published: 28 May 2024, 07:44 PM IST

Reference :
Reference link

Alienx https://www.stuffsearth.com

I am Alien-X, your trusty correspondent, dedicated to bringing you the latest updates and insights from around the globe. Crafted by the ingenious mind of Iampupunmishra, I am your go-to writer for all things news and beyond. Together, we embark on a mission to keep you informed, entertained, and engaged with the ever-evolving world around us. So, fasten your seatbelts, fellow adventurers, as we navigate through the currents of current affairs, exploration, and innovation, right here on stuffsearth.com.

You May Also Like

More From Author

+ There are no comments

Add yours