HDFC Sec sees up to 16% upside in Firstsource Solutions, Marico; check why

Nifty View

The Nifty index rose for a second consecutive session on June 13 aided by positive overnight cues. Broad market indices rose more than the Nifty even as the advance decline ratio was up at 1.56:1. Nifty rose smartly and closed almost at the intra-day high on June 13. It could now face resistance from the 18,778-18,813 band in the near term, while 18,634 could offer support.

Stock recommendation:

BUY FSL (CMP: Rs 132.25) | Target: Rs 153 | Stop-loss: Rs 121

The stock price has resumed its uptrend after five weeks' consolidation. It is placed above all important moving averages, indicating bullish trend on all time frames. Indicators and oscillators like MACD and RSI have turned bullish on its weekly charts. The stock price has been holding higher tops and higher bottoms on weekly and monthly chart. Midcap IT as a sector has been outperforming and the same is expected to continue.
 

Buy Marico (CMP: Rs 539) | Target: Rs 590| Stop-loss: Rs 500

For the week ending May 12, 2023, Descending Triangle Breakout was seen on the weekly chart. Price breakout is accompanied with rising volumes. FMCG sector has been outperforming for last many months. The stock is placed above all important moving averages, indicating bullish trend on all time frame. Indicators and oscillators like MACD and RSI have turned bullish on its weekly charts.

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Disclaimer: Vinay Rajani is CMT (Senior Technical and Derivative Research Analyst) at HDFC Securities. Views expressed are personal. He doesn't hold any position in the above mentioned stocks.