Hot Stocks | Here's why ICICI Bank, Maruti Suzuki can return up to 7% in short term

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26 Aug, 2025 12:21

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Nifty consolidated with slight negative bias on April 13 and the theme continued in subsequent sessions as well. On April 16, the index opened lower and then had a decent recovery to close tad below the 9,000 levels.

However, the real action was seen on April 17 as we had a massive gap up opening followed by indecisive swings throughout the first half. During the latter half, strong buying emerged across the board to end the week well above 9,200, adding a couple of percent gains to the bulls’ kitty.

Indian market was clearly struggling at higher levels for the major part of the week but the reluctance of the market to fall was apparent as well.

Every time Nifty approached 8,800-8,850, buying emerged and finally we saw it surpassing 9,200 on a weekly closing basis.

Technically, this development was crucial for the market as we can now see the immediate base getting shifted higher from 8,000 to 8,650-8,800.

On the flip side, this opens up the floodgates to extend this relief rally towards 9,500-9,800 in the coming days.

More importantly, the banking index which has been the weakest link, of late, finally made a strong comeback. This certainly provides credence to the move.

Apart from banking, auto index, too, has shown some strength along with the midcap space which had been buzzing throughout last week.

At present, traders are advised to keep following the stock-specific approach. And since we are still not completely out of the woods when it comes to coronavirus pandemic, one should keep booking profits on a regular basis.

During the recent mayhem, most of the all-time rank outperformers from the financial space took it on their chin, correcting significantly and marking one of the most brutal corrections in history.

This marquee private banking name plunged nearly 50 percent in merely 20 trading sessions which is quite abnormal.

Now, after consolidating for nearly couple of weeks around multi-year supports, the stock has shown the first sign of revival.

On April 17, we witnessed a stellar move and in the process, the stock prices confirmed a breakout from recent congestion zone and also surpassed 20-day EMA for the first time in many days.

Thus, we recommend going long on the decline around Rs 365 for a positional target of Rs 395-402 in the coming days.

The auto sector has undergone tremendous stress over the last few months, but, finally, there was some sigh of relief for traders trapped in some of the marquee names within this space.

Maruti had nosedived in the recent sell-off and in the process, tested the multi-year lowest levels at Rs 4,000.

However, the last couple of weeks had been excellent for this automobile giant as we saw a colossal rally of nearly 40 percent from the low.

Technically, the stock has managed to surpass the 20-day EMA with ease and now looking at the placement of the ‘RSI-Smoothened’ on the daily chart, we expect the stock to continue its relief move.

The stock can be bought on a decline towards Rs 5,400 for a target of Rs 5,900.