In a recent analysis, Ruchit Jain of 5paisa has recommended two stocks for traders to consider: ICICI Bank and Asian Paints.
ICICI Bank Ltd:
Short Term Correction Expected: Jain expects a short-term correction in ICICI Bank due to a breakdown from the neckline of a Head and Shoulders Pattern.
– Trading Recommendation: Traders can look to short ICICI Bank Aug Fut. in the range of ₹1,170-1,180 with a stoploss above 1,220. The potential near-term target is seen at ₹1,100.
Asian Paints Ltd:
– Pullback Move Expected: Jain believes that Asian Paints has gone through a time-wise and price-wise corrective phase in the last few months, indicating a possibility of a pullback move.
– Trading Recommendation: Traders can look to buy the stock in the range of ₹3,100-3,080 for a potential target around ₹3,250. The stop loss on long positions should be placed below ₹3,020.
Jain’s analysis comes as the domestic benchmark indices, Sensex and Nifty 50, saw a strong comeback in early trade on Tuesday following a sharp decline in the previous day. The Sensex increased by 1,092.68 points to 79,852.08, while the Nifty 50 increased by 327 points to 24,382.60.
