Top momentum stock picks: Indian stock market benchmarks the Sensex and the Nifty 50 ended with losses for the third consecutive session led by a slide in information technology stocks on Receding bets of early US rate cuts and worries over the conflict in the Middle East.
The NSE Nifty 50 shed 0.56 per cent to close at 22,147.90, while the S&P BSE Sensex settled 0.62 per cent lower at 72,943.68 on Tuesday. Since touching record closing highs on April 10, the domestic equity benchmarks have lost 2.7 per cent each over the past three sessions, which is also their longest losing streak this year.
Investors' wealth tumbled ₹7.93 lakh crore in three days of the market crash amid simmering geopolitical tensions and weak global trends. The US dollar climbed to more than five-month highs while gold prices hovered near record-high levels.
Going ahead, domestic brokerage house ICICIdirect expects the current decline to extend towards next key support of 21,900, as a part of retracement of past one month rally, followed by a base formation amid stock specific action as earnings season accelerated. Meanwhile, life highs of 22,800 to act as key resistance, being value of last week highs and upper band of rising channel
ICICIdirect has picked GAIL, Indraprastha Gas Ltd (IGL) and National Aluminium Company Ltd (NALCO) as its top stocks to buy. ICICIdirect sees a potential upside of 8-10 per cent on these stocks from the new target prices. The brokerage has given a ‘sell’ call for DLF.
1.GAIL: Recommended Price 195.50-196.50; Target Price: 199.20; Stop Loss: ₹194.10 --Price rebounding after taking support at recent breakout area signaling further upsides in coming sessions, said ICICIdirect.
2.DLF: Recommended Price ₹882-884; Target Price: ₹872.00; Stop Loss: ₹890.20--Price close below 20 day EMA suggests further downward momentum in coming sessions, said the brokerage.
3.IGL: Recommended Price ₹472-482; Target Price: ₹515.00; Stop Loss: ₹458.00; Upside eight per cent
Price retested triangular base formation with volumes offers fresh entry opportunity. Resilience amid recent volatility signifying strength and augurs well for next leg of up move, said ICICIdirect.
4.NALCO: Recommended Price ₹180-185; Target Price: ₹198.00; Stop Loss: ₹177.00; Upside eight per cent
Metal sector is outperforming in recent market volatility. Within this sector National Aluminum has given a breakout from six week consolidation and sustaining above the same indicating further upsides in coming sessions.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.