We will enter New Year 2022 in just a couple of days. We always seem to make new lists – be it personal or financial. Stock markets analysts are scouring through the markets, finding the stocks they like, and putting together their lists of ‘Top Picks,’.
Top stocks recommendations for the upcoming year 2022 includes SBI, GAIL, HDFC Bank, TCS, among others.
Dr Ravi Singh-Vice President and Head of Research-ShareIndia shares top picks for 2022:
1) ONGC: The 62 per cent increase in natural gas prices by the Indian government will boost the profitability of companies. Higher crude prices, along with a modest 5-7% growth in the company’s production volume, may push its EBITDA in next year. We estimate the company’s debt-to-EBITDA ratio will strengthen to about 1.6x to 1.9x during this period. Technically also, most of the indicators like MAs, RSI, MACD and Stochastic are showing an uptrend on the daily chart. We expect ONGC to touch the level of 170 next year.
2) Gail: Improved earnings supported by higher volumes across segments supported by boosted marketing profit due to higher gas prices may drive Gail next year. Increased production after a shutdown in the preceding quarter aided petrochemical volumes. A rise in gas consumption supported transmission volumes which will further strengthen the profits. On the daily chart, Gail stock is having very strong support around 140 levels and 200 days MA is supporting buying trend. Also, RSI is in its lower zone, so we expect Gail to touch the target of 165 in the near term.
3)HDFC Bank: Strong capitalisation, enhanced liquidity, reduced NPAs and robust earnings make HDFC Bank a good choice for investment for Samvat 2078. HDFC Bank share price is trading above its 100/200 DEMA levels in the daily chart. The stock price is placed above the parabolic SAR on the weekly chart which suggests a positive trend. The target for next year stands around 1750.
4)TCS: The technology sector is overall in strong hands due to stronger dollar, digitalisation and improved business growth which is expected to continue to next year also. TCS share price is trading above the mean with the upper band facing in the north-ward direction indicating the price to move higher. Analysing the recent volume price action the volume has been encouraging the recent upward move indicating strong hands have started accumulating the stock at current levels. Most of the oscillators are indicating the intact bullishness in the stock. We expect TCS to touch the target of 3600 in Samvat 2078.
5) SBI: Currently is trading above all term MAs like 25 DMA,50 DMA,100 DMA and 200 DMA, which confirms the positive momentum. Also, RSI, MACD, ADX are trading in a comfortable zone indicating bullishness in the stock. We may expect the counter to continue its outperformance in the coming months as well and may move towards 600 levels in the long term.
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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