Anand Rathi lists 2 ‘emerging picks’ including Infosys; details here

The Indian market has been on an upward trend, rising 1.66 percent in April so far and 4.4 percent in 2024 year-to-date (YTD). The bullish momentum of the stock market can be attributed to various factors including speculation about a potential rate cut by the US Federal Reserve, ample liquidity in the market, positive sentiments prevailing in global markets, robust performance in the fourth quarter of 2024, and anticipation of a turnaround in the Chinese economy.

With India's promising economic outlook and a surge in retail investor participation, experts anticipate that the unprecedented rally in the Indian stock market could persist. The growing influence of retail investors serves as a cushion against potential downturns, even if there are foreign capital outflows due to delayed or minimal rate adjustments by the Fed.

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Keeping in mind the recent uptick in the Indian market with the upcoming elections and the March quarter earnings in focus, brokerage house Anand Rathi has come out with 2 'emerging picks' with a time horizon of 30-90 days. Let's take a look.

Infosys | Target: ₹1,583, ₹1,610 | Stop Loss: ₹1,445 | Time frame: 30-90 days

The brokerage noted that most of the IT stocks including INFY (Infosys) have been in a corrective mode for the past few weeks and it has now retested the previous demand zone which is also a placement of its 200 DSMA. Also, the stock is turning from the 100 percent extension of the previous move. Thus, it advises traders to go long in the stock in the range of ₹1,510–1,490 with a stop loss of ₹1,445.

The stock has gained around 5 percent in the last 1 year but has shed 3 percent in 2024 YTD, despite giving positive returns in 3 of the 4 months so far. It has been flat in April after a 10.5 percent decline in March. However, the stock rose around 1 percent in February and 7.5 percent in January 2024.

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Currently trading at ₹1,499, the stock is over 13 percent away from its 52-week high of ₹1,731, hit on February 6, 2024. Meanwhile, it has jumped over 23 percent from its 52-week low of ₹1,215.45, hit on April 25, 2023.

UPL | Target: ₹550, ₹570 | Stop Loss: ₹450 | Time Frame: 30-90 days

“For the past three years, UPL started its correction from the peak of ₹820 and almost tested the ₹450 mark. The long-term chart depicts that the stock has retraced exactly 61.8 percent of the entire rally which started from the year 2020. In addition, we are witnessing a double bottom formation near the ₹450 mark on the daily scale. Thus, the brokerage advises traders to go long in the stock in the range of ₹495–485 with a stop loss of ₹450,” the brokerage said.

The bullish review by the brokerage comes despite an over 33 percent fall in the stock in the last one year and a 15.5 percent decline in 2024 YTD. The scrip has given positive returns in just 1 of the 4 months so far. It rose almost 9 percent in April, snapping losses after 3 straight months of decline. It fell 2.9 percent in March, 12.7 percent in February and 8.4 percent in January 2024.

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Currently trading at ₹496.20, the stock is around 35 percent away from its 52-week high of ₹760.45, hit on May 2, 2024. Meanwhile, it has gained nearly 11 percent from its 52-week low of ₹448, hit on March 14, 2024.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.