Technical Analysis - ICICI Bank, HDFC Bank, Pidilite Industries, Grasim Industries
Stock market: ICICI Bank, HDFC Bank, Pidilite Industries to Grasim Industries, what experts have said.
Stock Markets closed after logging a strong performance today with Sensex gaining 0.76% and closing at 40,182,67 while Nifty was up 0.82% to close at 11834.60. Market participants are scouting for good trading opportunities and watching stocks which are looking good technically for a breakout in this rising market.
Sumeet Bagadia, Executive Director, Choice Broking identifies two such stocks, Pidilite Industries is the first stock in the chemical sector which is trading at a market cap of just over Rs 75000 Cr. Grasim Industries, a diversified Birla group company, is the second stock.
Next are HDFC Bank and ICICI Bank from private banking space, trading at a market cap of Rs 6,55,000 cr and 2,67,000 Cr, as identified by Vishal Wagh, Research Head, Bonanza Portfolio.
On the daily timeframe, Pidilite stock has been forming the “Inverse Head & Shoulder” Pattern, which is a sign of bullish reversal and suggests buying in the counter. Moreover, Pidilite has been trading above the “Ichimoku Cloud”, which indicates a bullish setup for the near term. Furthermore, the stock has also sustained above 200 days Exponential Moving Averages, which support the buying trend for long term. Additionally, a momentum indicator RSI reading is at 59.70 with supportive Volume activity. Hence, we are recommending a long position in Pidilite Industries at CMP 1488 with the SL of 1380 for the upside target of 1700 levels.
Grasim Industries :
The stock has been trading above the “Falling Trendline Breakout” from the last couple of weeks, which suggests positive strength in the counter. Moreover, the price has moved above 100 weeks Exponential Moving Average, which indicates more bullishness for medium term. Furthermore, a Volume activity has been rising gradually, which confirms buying interest among the traders. In addition, an indicator Stochastic & MACD has shown positive crossover on the chart, which supports the bullish trend in the counter. So based on the above technical structure, one can initiate a long position in Grasim at CMP 769 with the SL of 714 for the upside target of 840/870 level.
Since March 2020 ICICI Bank has spent a large amount of time between the range 320-390. Due to such large consolidation, all major moving averages are also flattish. With every progressing day, the consolidation is getting stronger. The 200 EMA is at 286 and ICICI Bank has managed to close just above it before the credit policy tomorrow. It is extremely close to the upper side of the range. Once a stock gets to break out of said consolidation with volume the big upside move of 12-16% cannot be ignored. Till that time one can utilize the current trading range for trading purposes.
Since March 2020 it has spent a large amount of time between the range 1020-1150. Yesterday it had given a breakout of the range with decent volume at the same time, it has confirmed a breakout out of the consolidation zone by follow-up on today. The RSI is indicating that the momentum is a strong and further rally in the stock can continue. On the higher side, the HDFC Bank may see a target up to 1300.
(Authored by Rahul Kamdar)
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