Today ie March 2, the seventh day of the Russian invasion of Ukraine, has not only rocked the equity markets, but has also increased the prices of oil, natural gas and some metals wildly. Russia is a major exporter of these commodity products. So this has raised concerns about corporate earnings and economic growth. Crude oil is trading above $100 a barrel, having risen more than 40 percent in the past two months. The sanctions imposed on Russia by the US and its allies have added to the pressure.
“In our view, balancing crude oil or relatively mild sanctions will be critical to global equity recovery in the short term,” ICICI Direct said in a note. However, the recent correction is also a good buying opportunity for investors as long-term fundamentals will remain intact with the economic recovery continuing and expectations of strong earnings growth.
“We continue to see this correction as an opportunity for investors to add companies with consistent growth to their portfolios,” he added. He further added that technically last week’s low of 16,200 could be support level for Nifty while 16,800-17,000 and 200 DMA (16,900) would be important resistances.
“A strong close above 16,800 with cool off in VIX and crude oil may further support the ongoing pullback rally towards 17,200,” said ICICI Direct. India VIX was at 28.6 on February 28. At the same time, it is necessary to go down 20 points for the market to stabilize.
Know the Report of Brokerage Houses on DR REDDY’S, VARUN BEVERAGES and AUTO Sectors
Here are the 8 techno-fund stocks suggested by ICICI Direct for the next three months:
State Bank of India | Buy: Rs 475-485 | Target: Rs 545 | Expected Return: 14 percent
Mindtree | Buy : Rs 3,700-3,780 | Target: Rs 4,148 | Expected Return: 11 percent
Ambuja Cements | Buy: Rs 295-310 | Target: Rs 348 | Expected Return: 15 percent
Balakrishna Industries | Buy: Rs 1,720-1,790 | Target: Rs 2,010 | Expected Return: 14 percent
Aditya Birla Fashion & Retail | Buy: Rs 258-268 | Target: Rs 305 | Expected Return: 15 percent
Indian Energy Exchange | Buy: Rs 196-206 | Target: Rs 232 | Expected Return: 14 percent
Grindwell Norton | Buy: Rs 1,550-1,620 | Target: Rs 1,800 | Expected Return: 14 percent
Balrampur Chini Mills | Buy: Rs 380-395 | Target: Rs 445 | Expected Return: 15 percent
ICICI Direct says that the fall in the market is an opportunity for investors to buy shares of good companies
(Disclaimer: The views and investment advice given on moneycontrol.com are the personal views and opinions of investment experts. Moneycontrol advises users to consult a certified expert before making any investment decision.)
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