United Spirits, Thermax can be among top 5 gladiator stocks for your portfolio

The brokerage firm has picked these five stocks as gladiator stocks, recommended for a period of three months. Investors, however, are advised to enter these stock(s) in a staggered manner within the prescribed range. Once the recommendation is executed, it is advisable to keep strict stop loss as provided on closing basis.

Top five gladiator stocks recommended by ICICI Direct are:

United Spirits: Buy 755-776 | Target price ₹848 | Stop loss ₹712

The share price of United Spirits has potential to rally further, analysts at ICICI Direct suggest an estimate of 10 per cent upside from the current levels.

The brokerage has initiated a “Buy” action on United Spirits with a buying range between ₹755-776 and a target price of ₹848. The time frame given is three months. Stop loss can be kept at ₹712.

It expects the stock to regain upward momentum and head towards ₹848 levels as it is 50% retracement of past three months decline ( ₹952-730)

“The share price of United Spirits looks lucrative at current juncture, as it is undergoing a higher base formation after arresting secondary correction in the vicinity of breakout area of 7 years contracting triangle placed at ₹800, indicating change of polarity. Thereby, offering fresh entry opportunity with a favourable risk reward,” it said in a research note.

The stock has logged a resolute breakout from three months falling channel and sustaining well above past two weeks high, backed by rising volumes, indicating conclusion of corrective bias, the brokerage said.

Key point to highlight, the brokerage said, is that, past eight months consolidation appears to be forming a double bottom formation, signifying bullish reversal on the cards.

Thermax: Buy 2210-2248 | Target price ₹2,490 | Stop loss ₹2,080

The capital goods sector stands out amid current volatility as it outperforms benchmark highlighting strength and positive outlook for the sector. Thermax, which has been undergoing a base formation in past few weeks near its key support, is now coming out of a base formation, offering a fresh entry opportunity.

The brokerage expects the share price to head towards ₹2500 as it is implication of past three month’s consolidation breakout (1850-2180) projected from the breakout level.

“The share price bottomed out in late December near its long term rising 52-week ema (currently at ₹2037), which has been held since CY20 and then underwent a decent higher base formation in the ₹1850-2180 band for over a three month period. In the current week, the price has resolved out of this consolidation despite marketwide volatility. This is an indication of resumption of uptrend,” it said.

Hindustan Aeronautics: Buy 2,785-2,835 | Target price ₹3,240 | Stop loss ₹2,580

The brokerage has initiated a “Buy” action on Hindustan Aeronautics with a buying range between ₹2,785-2,835 and a target price of ₹3,240. This represents an upside of 14 per cent and the time frame given is three months. Stop loss can be kept at ₹2,580.

It expects the stock to accelerate upward momentum and head towards ₹3,240 as it is the implied target of past three month’s consolidation (2800-2300).

IDFC First Bank: Buy 56.20 | Target price ₹64 | Stop loss ₹51

Within private banking space, brokerage ICICI Direct is positive on IDFC First Bank, which it expects to outperform over the next few months.

Bharat Electronics: Buy 93-97 | Target price ₹108 | Stop loss ₹87

The brokerage has given a “Buy” action on BEL with a buying range between ₹93-97 and a target price of ₹109. This represents an upside of 11 per cent and the time frame given is 3 months. Stop loss can be kept at ₹87.

It expects the stock to resume its uptrend in the coming weeks and head towards ₹110, which is 80 per cent retracement of the entire decline of September 2022-January 2023 decline (114-87).

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.