Diwali 2020 Picks: Infosys, ICICI Bank, Britannia to Cipla are stocks to buy, says Kotak Securities

Diwali 2020 Picks: Kotak Securities picked Infosys, which is 2nd largest I.T. company in India, ICICI Bank is the 3rd largest private banking in India, Britannia from FMCG sector, Cipla from Pharma Sector, Dalmia Bharat from Cemene space. Five companies picked by Kotak securities are from five different sectors which ensures that portfolio of investors are not concentrated on one specific sector and are equally diversified.

Nifty View:

Benchmark Nifty has rebounded sharply after hitting the levels of 7510 in the month of March 2020. The index is in the third leg of a major corrective pattern. It is correcting after hitting the crucial and psychological mark of 12000. Until the market is above the level of 10800 (previous significant bottom), Nifty would keep rallying. Below 10800 levels Nifty would lose its momentum and may even fall to 10300 levels. On the decisive crossing of 12400 levels would lift the Nifty to 13300 levels.

Infosys Technologies:

 Kotak Securities say buy 50% at Rs 1097 and buy balance at Rs 960 for target of Rs 1400 and stop loss of Rs 850 and the time Horizon for this trade would be 3 months. The stock is in a completely new impulse / trending wave. The stock has formed a strong breakout continuation pattern and weekly charts suggest an uptrend wave likely to continue in the medium term. The strategy should be to keep buying on dips at crucial supports. On the upside the next wave should end between Rs 1400 / Rs 1440.

ICICI Bank:

The stock did fall vertically during the period of lockdown and Covid -19 crises. It was at 550 in the month of February 2020 and fell to 268 levels by the end of March 2020. It is also under the pressure of sectoral weakness. However, technically, it is into gradual pull back on the upside and we could expect Rs 480 in the near term from it. Buy 50% at current levels and balance at Rs 375. Keep a final stop loss at Rs 350. On the upside the rally could extend up to 480 levels.

Britannia Industries:

It is a fresh technical breakout on long term charts. Currently it is into throwback mode to retest earlier major resistance. Buy 50% at current levels and balance at Rs 3200. Keep a final stop loss at Rs 3000. On the upside the rally could extend up to Rs 4000 levels.

Cipla:

The stock is forming a “Cup with Handle” formation on monthly charts. Buy 50% at current levels and balance at Rs 700. Keep a final stop loss at Rs 650. On the upside it could move to Rs 840 levels.

Dalmia Bharat:

The entire cement space is buzzing heavily. Now one needs to take a “Top Down” approach. The stock is following the formation of the trending wave. It is moving upward with a frequent consolidation, which is bullish for the stock. Technically, after crossing the crucial level of Rs 920, it would arrest only at Rs 1075. Buy 50% at current levels and balance at Rs Rs 770. Keep a final stop loss at Rs 700. On the upside the rally could extend up to Rs 1075 levels.