Technical Check: ICICI Bank, L&T, Hero Moto among top Nifty50 stocks to buy for 2022 that could give 10-16% return

What a fantastic year it has been for stock market investors. While the Nifty50 has delivered returns of about 22% in this calendar year, the Nifty midcap index has delivered returns of over 42 per cent while the small-cap index has given returns over 53 per cent.

Now, this has become history…and what we are looking ahead is the year 202. The question is will the equity market continue to give such returns and oblige the investors?

Ruchit Jain, Lead Research Analyst at 5Paisa.com help us decode key levels to watch out for in 2022 and 4 stock trading ideas that are looking attractive on charts:

In last couple of months, our markets have corrected from the highs and the Nifty50 has given a correction of more than 10 per cent. The portfolio values too have come off the highs for many investors in the last two months.

In our view, the bull market is not over yet, and this down move just seems to be a corrective phase within an uptrend.

Although the daily chart still shows a ‘Lower Top Lower Bottom’ Structure, the bears seem to have lost the grip post the recovery from recent swing lows of 16410.

The Nifty50 is hovering near the 17000 mark and the 17300-17400 is the key resistance range. We may see a small dip from this range in the next few days, but we would advice investors to look for buying opportunities in any such dips.

And, once the Nifty manages to surpass this hurdle of 17300-17400, then the bulls will be back in the driver’s seat to lead the markets higher.

Here is a list of top technical trading ideas for the year 2022 that look promising on charts and can deliver good returns:

ICICI Bank: Buy| LTP Rs 740| Buy Range Rs 740-730| Target Rs 810| Stop Loss Rs 698| Upside 10%

ICICI Bank has been one of the outperformers within the banking space in 2021 and it has shown relative strength in this space. As we expect the banking index to complete its corrective phase, this stock could be the leader in the pullback move in Bank Nifty.

The stock is hovering around its 89 EMA support on the daily chart and if we look at its RSI on the weekly chart, it has traded above the 50 mark since October 2020 and is now trading around that support.

So, we expect this index heavyweight to continue its outperformance and hence, one can look to buy around current levels of 740-730. The potential target for this stock is seen around Rs. 810 and one can place a stop loss below Rs. 698 on their positions.

Hero MotoCorp: Buy| LTP Rs 2462| Buy Range 2350-2300| Target Rs 2650-2750| Stop Loss Rs 2150| Upside 11%

The Auto space has not done relatively well in 2021 and this stock which is one of India’s first motorcycle manufacturers has underperformed with negative returns this year.

However, when we dig into the long-term charts, we saw that the stock is currently trading at 61.8% retracement support of the previous uptrend which is placed around Rs. 2300.

Also, the 2000-EMA on the monthly chart is placed around Rs. 2200 and the RSI Smoothened oscillator on the daily chart is showing a positive divergence.

Hence, it looks worth to bottom fish in this stock and one can look to buy this stock on declines in the range of 2350-2300 with a stop loss placed below Rs. 2150.

We expect a pullback move towards its 89 EMA on the daily chart which is placed around Rs. 2650 first and above that, 2750 will be targets to watch out for.

CCL Products: Buy| LTP Rs 429| Buy Range 425-420| Target Rs 470-480| Stop Loss Rs 398| Upside 11%

Post an impulsive up move, CCL Products stock entered a corrective phase during the end of July 2021 and since then prices have been consolidating within a range.

The volumes during the corrective phase were lower as compared to those seen during the uptrend.

Post some time-wise correction around its support on the daily chart, the stock prices have given a breakout today from the resistance with good volumes.

Thus, these are early signs of a resumption of the broader uptrend in the stock and hence, one should consider this as a good buying opportunity for the short term.

Traders can look to trade with a positive bias and buy CCL Products share in the range of Rs.425-420 for a potential target around Rs.470-480. One can place a stop loss below Rs. 398 on long positions.

Larsen & Tubro: Buy Range 1870-1850| LTP Rs 1895| Target Rs 2200| Stop Loss Rs 1735| Upside 16%

The capital goods sector has of late witnessed a good buying momentum and L&T has shown a steady up move in the year 2021.

In recent correction, prices took support at their daily 89 EMA and have now resumed the momentum. The RSI oscillator on weekly and monthly charts is positively placed and indicates a probability of positive momentum going ahead.

Hence, we expect the stock to steadily move higher and thus one can look to buy the stock in the range of 1870 - 1850. Traders are advised to keep a stop loss below 1735 and expect a potential target of Rs.2200 in the next few months.

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)