Motilal Oswal bullish on this bank stock for short-term gain, know target price
Brokerage Motilal Oswal has chosen the country's second-largest private lender ICICI Bank as a short-term technical pick and has given a 'buy' call on it for 2-3 days.
Domestic equity indexes Nifty 50 and Sensex opened higher on Tuesday, May 14 after bullish gains in foreign markets. Sensex was 240 points or 0.33 per cent up at 73,017.7 at 12.08 PM and Nifty 50 rose 0.40 per cent at 22,191.75 at 12.09 PM. Nifty Bank was merely 33 points or 0.16 per cent higher at 47,825.6 around the same time today.
Meanwhile, brokerage Motilal Oswal has chosen the country's second-largest private lender ICICI Bank as a short-term technical pick and has given a 'buy' call on it for 2-3 days.
ICICI Bank- Price target
The brokerage has set the target at Rs 1,180 per share. The stock can go up to 6 per cent higher from its current trading price at Rs 1,122.80 as per the brokerage.
A look at ICICI Bank's Q4 preview
Zee Business Research desk expects the bank to generate a standalone profit of Rs 10,300 crore in the March quarter, up 12.9 per cent from Rs 9121.9 crore in the same time last year.
Net interest income (NII), which is the difference between interest received and interest expenditure, is also expected to expand by 6.9 per cent year-on-year to Rs 18,880 crore from Rs 17,666.8 crore.
The desk also expects advances at the institution to expand by 17-19 per cent, while deposits will likely grow by 17-18 per cent.
The research team anticipates improved growth in the lender's retail and SME segments. The desk also anticipates the lender's fee income to increase significantly throughout the term. However, while the unsecured loan sector would drop, lender provisioning will decrease.
ICICI Bank stock performance
Over the last month, the stock gained over 4 per cent. The lender's stock has risen almost 20 per cent in six months and 13 per cent on a year-to-date (YTD) basis.
(Disclaimer: The views/suggestions/advices expressed here in this article are solely by brokerage firm Motilal Oswal. Zee Business suggests its readers consult their investment advisers before making any financial decision.)
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