Eight of 10 times, markets in Christmas week witnessed Bull Run - Will this happen again? Know what analysts say - Check top 3 stock picks

With the Christmas bell ringing in, the Indian markets too ended on a positive note this week as 3 out of 5 sessions have been in the green. As 2021 is on the verge of ending the analysts predict that after Christmas and New Year the market is likely to see fresh buying as we enter the year 2022. 

Historically, Christmas does look like a good time to buy stocks, as, since 2010, there have been 8 occasions when the markets have gone up in the last week of the year and only three times they have gone down, Rahul Shah, Co-Head of Research at Equitymaster said in a comment. 

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In this regard, Shah says that the trader who is mostly concerned about whether prices will go up or down, the odds are high that you will make money in the last week of the year. 

Christmas is celebrated across the world on December 25 to remember the birth of Jesus Christ. And, a myth that Santa Claus comes along with gifts and goodies to fulfill each one’s wishes. 

As long as the stocks you like are available at a significant discount to their intrinsic values, you should go ahead and buy irrespective of whether there's a Santa Claus rally or a Santa Claus correction, Equitymaster co-founder mentioned before concluding his quote. 

Similarly, Choice Broking Executive Director Sumeet Bagadia also said that the market has seen a decent correction in the last few weeks and advices to initiate a long position as upmove is expected from here. He also added, that there is a possibility that we might see new life high before the budget. 

Echoing the same that of Bagadia, TradeSwift’s Director Sandeep Jain explains, the market would witness a fresh buying after Christmas and New Year as the foreign investors selling have been reduced and it’s likely to turn into buying from the first week of January 2022. 

Jain suggests that until the Budget run-up, the market would be range-bound with a resistance of 16300-16200 levels at the downside. And, the news highs only be seen with Budget announcement, he added. 

On the back of Christmas and New Year, Bagadia suggests ICICI Bank, SAIL, and Mahindra and Mahindra as a top picks for bumper returns. 

ICICI Bank – Buy at Rs 731-721; Target: Rs 830/910  

On a weekly chart, the stock has given a breakout of Rising Wedge Formation made a high at 867 levels but later showed profit booking from higher levels and made a low at 698 levels. On a daily chart, the stock has formed a hammer candlestick pattern with the support of 23.6% RL of the previous rally which points out strength for upside in the counter.  

SAIL – Buy around Rs 111-108; Target: Rs 130/145 

On a weekly chart, the stock is forming a Bullish Flag pattern, which is a continuation pattern and indicates a bullish presence for the long term. Moreover, the price has traded above Ichimoku Cloud formation and 50-weeks Simple Moving Average, which suggests a bullish strength for the long term. 

M&M – Buy 825-820; Target: Rs 960/1050 

On the daily chart, the stock has taken support at around 61.8 per cent Retracement Level of its prior rally from 724.65 to 979 levels, indicates further reversal in the prices. Moreover, the stock has also sustained above the support of 200-Days SMAs, which confirms the bullish trend for the long term.