The domestic brokerage said
is witnessing buying demand from the key support area of Rs 2,370-2,400 and it expects the ongoing up move from the oversold territory to continue, thus, offering a fresh entry opportunity with a favourable risk-reward set-up.
“A key point to highlight is that in the past 13 weeks it has retraced just 61.8 per cent of its past eight-week rally from Rs 2,180 to Rs 2,856. A shallow retracement signals positive price structure,” ICICIdirect said.
Buying demand has emerged from the 52-week EMA, which has historically acted as an incremental buying opportunity on multiple occasions (currently at Rs 2,430), which also confluences with the rising demand line joining lows since January 2021, it added.
On the fundamental side, the brokerage said a rise in gross refining margin (GRMs) will be the key to lift oil to chemical (O2C) earnings and steady cash flow from traditional business will enable the company to invest in new energy verticals, it said.
Exploration segment Ebitda is estimated to grow at 74 per cent CAGR in FY22-24 amid favourable gas pricing scenario, it said adding that Jio’s ARPU may grow at 15 per cent CAGR in FY22-24 amid improved subscriber mix.
“Retail Ebitda is expected to increase at 40 per cent CAGR in FY22-24E with focus on enhancing consumer touch-points, aggressive store network expansion and strengthening its digital commerce and omni channel capabilities,” it said.
Overall, the long-term prospects and dominant standing of
in each of its product and service portfolio provides comfort for long-term value creation, ICICIdirect said.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)