Indian benchmark indices were trading higher amid positive cues from global markets. The BSE Sensex rose 300 points to 54,527, and the NSE Nifty 50 gained 90 points to 16,222. The broader markets were also in the positive zone with the BSE MidCap and SmallCap indices inching up to 0.3 per cent higher. Sectorally, Nifty Bank, Auto, Financials indices led gains, while metals index was the sole laggard. Markets continue to remain volatile and stock specific action is expected. Amid this, analysts at ICICI Direct have picked JSW Steel and DLF stocks among their top bets for July, based on technical and derivative data. The brokerage firm is projecting up to 8% potential rally within the next 30 days.

JSW Steel: Buy
Target price: Rs 620; Upside: 8%
Duration: 30 days

JSW Steel shares have tanked around 15 per cent so far this year, underperforming even benchmarks Sensex and Nifty 50 which have corrected over 7 per cent. Metal sector has undergone significant price, as well as time correction since its May 2021 peak and most large cap metal stocks are currently placed in extreme oversold zone on their momentum readings, according to the brokerage report. Analysts at ICICIDirect said that JSW Steel has retraced its January-May 2021 rally by 61.8% over the past 12 months and recently undergone a base formation at its key support of Rs 500. “We expect the stock price to post a technical pull back from oversold readings and head towards 38.2% retracement of May-June 2022 decline (790-520) placed at Rs 625,” they said. They recommend buying the stock in Rs 563-577 range with stop loss at Rs 540 and target price of Rs 620.

DLF: Buy
Target price: Rs 360, Upside: 7%
Duration: 30 days

D

JSW Steel shares have tanked around 14.5 per cent so far this year, underperforming benchmark indices. Analysts at ICICIDirect stated that the share price of DLF has witnessed trend line breakout recently and sustaining above it and 20 day EMA signaling resumption of up move and thus offers fresh entry opportunity. “We expect the stock to maintain positive bias and head towards Rs 360 levels in the coming sessions as it is the 61.8% retracement of the April-June decline,” they said. Immediate support is placed at Rs 302 levels being 80% retracement of the recent up move. “Among the oscillators the daily RSI is in rising trajectory above its 9 period average thus validates positive bias,” they added. They recommend buying the stock in Rs 317-327 range with stop loss at Rs 302 and target price of Rs 360.

Nifty may gradually head towards 16600 in coming months

According to the brokerage report, the formation of higher high-low underpinned by improving market breadth signifies revived upward momentum. Further, sharp decline in crude oil prices coupled with cool off in India VIX signifies improvement in market sentient that makes us believe index will challenge immediate hurdle of 16200 and gradually head towards 16600 in coming months

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