Even though Indian market outperformed most other markets in 2022, the Indian rupee ended 2022 as the worst-performing Asian currency with a fall of 11.3%, its biggest annual decline since 2013, as the dollar rocketed on the U.S. Federal Reserve's aggressive monetary policy stance to tame inflation.
In 2023, India faces Challenges such as core inflation remaining at 6% YoY, pressure on fiscal deficit due to MNREGA spend & subsidies, high Current Account Deficit (4.4% in Sept 2022 quarter – a 9 year high). Fiscal deficit in India (Centre and Total) not likely to come back soon to prudent levels after the Covid breach, said Dhiraj Relli, MD & CEO, HDFC Securities.
Meanwhile, experts say emerging markets are likely to benefit from a relatively more benign world versus 2022. Amid such an environment, Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher lists three technical stock picks:
ABB
Recommendation: .uy | CMP: ₹2,683 | Target: ₹3,000–3,200 | Stop loss: ₹2,550
The stock has made a decent correction from the ₹3,450-level to ₹2,650 and also has shown signs of taking support and consolidating near the 200-DMA level of ₹2,670 which would be quite significant anticipating to give a pullback from here on. It has also completed the 61.8% retracement level of the recent correction and has been moving sideways in a narrow range for quite some time.
With rising volume participation and the RSI recovering from the oversold zone, the chart looks quite attractive for further upward move. We recommend buying and accumulating this stock with an upside target of ₹3,000–3,200 and a stop loss near ₹2,550.
Birlasoft
Recommendation: Buy | CMP: ₹299 | Target: ₹330 | Stop Loss: 288
The stock after the short correction has consolidated and taken support near the ₹185-188 levels and indicating some improvement in the bias moving past the significant 50-EMA level of ₹298 and with the RSI also flattening out near the oversold after the correction has indicated signs of reversal with immense upside potential visible. With the chart looking good, we recommend a positional buy in this stock for an upside target of ₹330 keeping a stop loss of ₹288.
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Piramal Enterprises
Recommendation: .uy | CMP: ₹828 | Target: ₹955 | Stop loss: ₹800
The stock after forming the triple bottom formation pattern on the daily chart has indicated a strong support zone near ₹790-800 and with a decent pullback has improved the bias anticipating for further rise in the coming days. With the RSI also showing a trend reversal from the oversold zone has signaled a buy and has immense upside potential visible. With the risk reward ratio favorable and chart looking good, we recommend a positional buy in this stock for an upside target of ₹955 keeping a stop loss of ₹800.
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.
