Ashika Stock Broking is positive on select bluechip counters including Infosys and HDFC Bank amid the volatility in the broader markets. The domestic brokerage firm has picked up these largecap counters as its top picks for the week which may deliver double-digit gains in the near term.
Ashika Stock Broking believes that both Infosys and HDFC Bank appear strong on both technical and fundamental basis and may be looked upon for short-term gains, considering the dampened market sentiments. Here’s what Ashika said about these to counters
Infosys | Target Price: Rs 1,675 | Upside Potential: 10.4%
Infosys 3QFY23 numbers came ahead on consensus estimates. Despite a seasonally weak quarter marked by holidays and furloughs, the company delivered a strong 2.4 per cent sequential growth in revenue. Large deal TCV for the quarter was the strongest in the last 8 quarters at $3.3 billion. The pipeline of large deal remains strong. Digital comprised 62.9 per cent of overall revenues and grew at 21.7 per cent YoY in constant currency.
The Nifty IT index has resumed up move after a higher base above the recent 11 month’s declining channel breakout area signaling resumption of up move. The share price is seen forming a base around the Rs 1,400 level, buying demand is also seen emerging around the said support zone. In the process the stock is still trading in a broader consolidation range of Rs 1,400-1,640 and has resulted in to forma a bullish Symmetrical Triangle formation and is on the verge of breakout. On the oscillator front 14-period RSI too the stock has witnessed a positive buy crossover above the 50-level mark in weekly time frame. Hence the stock can be accumulated for an upside target of Rs 1,675 in near term.
HDFC Bank | Target Price: Rs 1,765 | Upside Potential: 9.2%
HDFC Bank posted another robust 3QFY23 numbers. The largest private sector bank reported its highest quarterly net profit of Rs 12,259 crore in the said quarter. The change in the loan mix in favour of high-yielding retail loans, along with the re-pricing of the loan book, due to rising interest rates, is likely to boost margins gradually over the next few quarters.
The stock had been on a sequential uptrend in both daily and weekly time frame and is presently on the verge of generating a breakout above the previous swing high of Rs 1,725. Last few days price rise is well supported by strong volume signaling larger participation. Historically the stock had been respecting the crucial 100-DMA and at a successive trade above it has resulted in with a substantial rally. The daily 14 periods RSI is also in an uptrend thus validates positive bias. Hence one can expect the stock to head higher towards Rs 1,765 in near term.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today)
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