Stock specific performance in broader market likely to continue, says ICICI Securities; lists themes, 16 stocks to watch out for

Benchmarks Nifty50 and the Sensex declined in a holiday-shortened week amid volatility due to earnings season and geopolitical factors. The broader Nifty50 and the Sensex closed lower by around 1.7% and 2% respectively for the week ended April 13, 2022.  

As the headline equity indices paused their upward momentum in truncated week, ICICI Direct is of the view that Nifty is expected to prolong ongoing consolidation with positive bias in the range of 17200-17800 in coming week amid stock specific action.  

Recommending buy the dips, it said that Nifty is not expected to breach strong support of 17200 levels.  

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Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas said the Nifty started the session on a positive note on April 13, however, couldn’t extend beyond the key hourly moving averages. "The Nifty has dipped into the support zone of 17500-17400, which encompasses multiple support parameters. Thus this is an opportunity for short term traders for staggered buying," said the expert.  

On the higher side, 17600-17665 is a near term hurdle zone, he said, adding that the index is expected to pick up momentum on the upside once this barrier is crossed on the higher side. 

As per ICICI Direct, the 50-stock blue-chip index retraced early April rally just partial in slower pace signifying underlying strength in uptrend. "Stock specific performance in broader market is expected to continue as breadth continued to improvise over last month," it underlined.  

As far as sectors are concerned, the brokerage feels BFSI, Metal, unlock themes are expected to do well along with stock specific performances by IT, Capital goods 

Stocks to buy  

The brokerage identified 16 stocks from large cap and mid cap those are likely to outperform going forward.  

State bank of India, Axis Bank, TCS, Adani Ports, Reliance Industries, ITC, JSW Steel were preferred large cap stocks where the brokerage see action in the near term.  

In the midcap space, it picked ABB India, Bharat electronics, Cochin Shiypard, Thermax, Praj Industries, Voltas, Indian Hotels, Rallis and Redington as stocks to watch out for.