Recent days have seen losses in the Indian stock market due to various factors including concerns over global trends and tensions in the Middle East. The Nifty 50 and the Sensex both closed lower for the third consecutive session, with the Nifty shedding 0.56% and the Sensex dropping 0.62% on Tuesday. This decline over the past three days marks the longest losing streak this year, resulting in a significant decrease in investors’ wealth.
Looking ahead, ICICIdirect, a domestic brokerage house, anticipates further decline towards the next key support level of 21,900. However, they expect a base formation amid stock-specific actions as the earnings season progresses. They also note that the life highs of 22,800 are likely to act as a key resistance level.
ICICIdirect has identified GAIL, Indraprastha Gas Ltd (IGL), and National Aluminium Company Ltd (NALCO) as their top stocks to buy, with a potential upside of 8-10% from the new target prices. Conversely, they have given a ‘sell’ call for DLF.
Here are ICICIdirect’s top momentum stock picks:
- GAIL: The stock is rebounding after finding support at a recent breakout area, indicating potential for further upside in the coming sessions.
- DLF: The price has closed below the 20-day EMA, suggesting a downward momentum in the upcoming sessions.
- IGL: The stock has retested a triangular base formation with volumes, providing a fresh entry opportunity. Its resilience amid recent volatility suggests strength and potential for the next leg of an upward move.
- NALCO: Within the metal sector, NALCO has given a breakout from a six-week consolidation and is sustaining above the same, indicating further upside potential in the coming sessions.
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