New Delhi, October 26: Due to a combination of domestic and international cues, India witnessed highly volatile markets over the last one year. Most experts expect the markets to perform better over the coming year. Here, we have collated some stock picks from different experts to make the most of the markets during the festive season, and beyond.
ICICI General Insurance
ICICI General Insurance is in a strong uptrend where the counter has broken out a bullish continuation pattern of cup and handle after a long consolidation of six months. The bullish momentum is likely to continue where it may see the level of 1,600 in the next six months.
HDFC
The strongest guy in the NBFC camp remained in the uptrend amid major problems in the sector. On the technical front, it is forming double bottom formation where 2,195 will be the breakout point whereas momentum indicators are also positively poised. It has moved above all its important moving averages and we are expecting an upside target of 2,500 in the next six to eight months.
Pidilite Industries
The overall trend of the Pidilite is bullish where after a decent correction from its 52-week high, it is forming a base around the previous breakout point of 1,300, which coincides with its 100-Double Exponential Moving Average. Therefore, it provides a favorable risk-reward opportunity for the traders where we can expect a target of 1,600 in the next couple of months.
Titan
In the current period of June, 2019-Oct, 2019, the stock is currently moving in range of 1,000-1,342 odd levels. It is currently moving in “consolidation phase” as it has taken support at multiple bottom of 1,000 level and facing resistance at higher level of 1,342. Multiple supports are at 1,180-1,100-1,000 and multiple resistances are at 1,340-1,400-1,500. We suggest to buy Titan at Rs1,301 and more at Rs1,240. For our target of 1,558, this gives us a good upside of 25 per cent in coming 9 months to 12 months period.
Kotak Mahindra
With the advent of online payment app by various players, the face of banking is changing. We believe Kotak bank has been able to keep pace with the evolving banking system and has pioneered new ways to reach out to its customers. This will help Kotak to stay ahead of the competition. Fall of many shadow banks in last one year has created a vacuum in the banking system.
We believe this provides an opportunity to grow for premium banks like Kotak Mahindra bank. Kotak bank has superior asset quality. While there has been some stress in segments such as Agriculture division, Small Business and Personal Loans, Credit cards and Business Banking, the overall asset quality of the banks remains healthy.
Voltas
The air conditioner market has seen robust growth in the last few years and we believe the penetration has seen expansion, which is still comparatively very low to other markets. Voltas is a leader in this segment and the kind of price structure it has proved that it has weathered the recent negative sentiments in the market. The stock has given a fresh breakout and with demand picking up due to festive season, the outperformance may continue with a higher target of 775.
DCB Bank
This is an outperformer from the small-cap space that has seen very consistent growth in the last few years in the private banking space. Recent numbers further validate as the profit after tax (PAT) came much higher than expectations while operating profit has seen growth in double digits. A recent correction in prices is seen due to flat Net Interest Margin (NIM) but we believe the stock has continued to provide stellar growth and will continue to do so in the next few years. It is buying for the target of 225.