Weekly Stocks: ICICI Direct suggests three shares with 8% upside potential to buy this week
Indian stock market: On Tuesday, May 28, the Indian stock market remained under pressure, with the benchmarks—the Sensex and the Nifty 50—closing in the red for the third straight session.The Indian stock market has experienced significant volatility this month due to substantial foreign capital outflows driven by election-related caution. The market has fluctuated between gains and losses, influenced by a lack of new catalysts, high valuations, and mixed global signals.Also read: Stock market today: Sensex, Nifty 50 fall for 3rd consecutive session; investors lose nearly ₹3 lakh crore in a day“We maintain our positive bias and expect Nifty to head toward our earmarked target of 23400 in the coming weeks.
The. The key point is that the Nifty has recorded a breakout from three months of consolidation backed by faster retracement as it entirely retraced the past nine weeks of consolidation (22800-21700) in just two weeks.
The faster pace of retracement exhibits a robust price structure that bodes well for the extension of ongoing moves. In the process, we expect volatility to remain high as we approach the fag end of the General election phases coupled with the Q4 earning season.
We believe the focus should be on the big picture, as we are in a structural uptrend. The anxiety will subside post-event, and markets will follow its structural up trend.
Retracement of the rally would thus provide a buying opportunity. Therefore, investors should focus on building portfolios and ride the uptrend as immediate support is placed at 22400," brokerage firm ICICI Direct said in a note.ICICI Direct has suggested Chennai Petroleum Corporation, PNB Housing and Tata Power to buy this week with an upside potential of up to 8%.Elevated
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