Top Stock Picks: 7 Stocks To Buy Now For Good Upside In 3 Months

ICICI Securities, a domestic brokerage company, has stepped out with quant stock picks and given buy ratings to Navin Fluorine, Indusind Bank, Tata Motors, HDFC Life, Granules, Coal India, and Deepak Nitrate. The brokerage's top pick today is Deepak Nitrite, which has a target price of Rs 2620 and a stop loss of Rs 2020.

ICICI Securities has said that "The Nifty has recovered sharply from the lows seen in the early part of the March series and gained almost 10% from lows. Midcap and small cap stocks have shown a better recovery and were able to outperform the broader indices. Moreover, stocks from the chemical and fertiliser space have remained in the limelight and witnessed significant price gains. We believe stocks like Deepak Nitrite will start witnessing fresh uptrend considering its low leverage positions."

As per the brokerage "The open interest in Deepak Nitrite has been declining gradually since October last year when it made highs near Rs 3000. The open interest in the stock has declined almost 45% since then. However, in the last few sessions we have seen fresh addition of open interest in the stock. It seems like it is gaining fresh traction. We believe the stock is on the verge of a fresh up-move in the coming weeks and should move towards Rs 2600 levels."

The brokerage claims that "On the options front, the stock is witnessing significant activity at the ATM Call strike of 2300. We believe once the stock starts moving towards Rs 2300, a sharp up move is expected due to closure of these options. Since the activities are visible till deep OTM 2600 strike, we expect the stock to move towards that in the coming sessions. Moreover, continued addition at 2200 strike may keep the downside limited."

As per ICICI Securities "For a major part of the March series the stock remained near Rs 2250 levels. We believe divergence from current levels should trigger a directional move. Considering continued delivery based accumulation in the last few weeks near current levels only, we expect the stock to move on the higher side. Since 2016, the stock has not spent much time below its long term mean +1*sigma levels. Currently, this level is placed near Rs 2240. We believe sustainability at current levels itself should provide momentum in the stock towards our target levels of Rs 2620."

Top Quant Picks: Open recommendations by ICICI Securities