The market has achieved new highs during the last few trading sessions. But if seen, after this there has been a broad correction in it. In such a situation, the question is which stocks to choose, in which there is a good potential for profit. ICICI Direct has selected two such stocks by its filter method, which can have a profit of 20 percent in the next three months.
The filtration model of ICICI Direct has chosen these two stocks on the basis of three things. These are -Delivery Pickup, Historic Volatility and Historic stock buying patterns derived from the Futures & Options universe. Only 162 stocks have been selected from the ICICI DirectFutures & Options universe, in which buying opportunities are being created. Two of these stocks have been selected. These are Tata Motors and Indian Oil Corporation.
Buying range: Rs 295-303
Target: Rs 360 | Stop loss: Rs 268
The auto sector is range-bound but Tata Motors has managed to perform well as compared to its peers. Its price distribution seems to be limiting the decline in this stock. From the delivery point of view, it has shown strong delivery based action. After a significant correction at the level of Rs 360, fresh delivery buying is seen at the support zone of Rs 280-300. According to ICICI Direct, it can see an increase of 19 percent in the three-month time frame.
Indian Oil Corporation
Buying range: Rs 104-106
Target: Rs 125 | Stop loss: Rs 94
Indian Oil has been proving to be an underperformer since the first half of July and has fallen 10 per cent so far. However, according to ICICI Direct, it has recently come back from the support zone, there is a lot of accumulation in this stock on the price distribution pattern. Daily returns have been swinging from zero to 1 per cent. If we look at this stock from the point of view of volatility, then the volatility of 30 days has been low and the volatility of 60 days has also slowed down now. This stock will see a rise in the coming week. In the time frame of three months, this stock can give 20 percent profit.
(Article: Kshitij Bhargava)
(The stock recommendations given in the story are those of the respective research analysts and brokerage firms. Financial Express Online takes no responsibility for the same. Investments in capital markets are subject to risks. Please consult your advisor before investing.)