From Cholamandalam To Hindalco: 3 Technical Stock Picks For The Week With 13% Upside Potential

As per Axis Securities, Hindalco Industries, Can Fin Homes, and Cholamandalam Investment & Finance Company—each displaying significant technical breakouts with potential upside targets ranging from 10%-13% over the next 3-4 weeks. Traders and investors are told to keep a close eye on these levels as momentum indicators continue to favor the bulls in the near term.

Nifty Outlook This Week

"On the weekly chart, Nifty formed a "doji" candle with a long upper shadow, representing a short-term pause in its recent uptrend. The index is sustaining above the medium-term downward sloping trendline, which signals a sustained uptrend. On the downside, the support zone lies between 25,500-25,300, with major support at 25,230 (20-day SMA). A sustained move above 26,000 could trigger buying towards 26,100-26,300 levels. For the upcoming week, we expect Nifty to trade within the 26,300-25,500 range with a positive bias. The weekly RSI remains above its reference line, reinforcing the bullish undertone," said the technical research analysts of Axis Securities.

Bank Nifty Weekly Outlook

"On the weekly chart, Bank Nifty formed a doji candle with a higher high-low structure, a clear indication of underlying strength and positive sentiment. The chart structure indicates that a violation of the 57,400 level could trigger profit booking, taking the index towards 57,000-56,500 levels. Conversely, a move above 58,300 may lead to momentum towards 58,600- 59,000 levels. For the week ahead, we expect Bank Nifty to trade within the 59,000-57,000 range with a positive bias. The weekly RSI is above its reference line, confirming the bullish momentum," commented the technical research analysts of Axis Securities.

Stocks To Buy This Week

As per Axis Securities, here are the top 3 technical stock picks for the week with a potential upside of up to 13%.

Hindalco Industries

Buy Range: 815-798, Stop loss: 771, Upside: 9% -13%, Duration: 3 to 4 weeks

• HINDALCO has registered an all-time high at 826 and also confirmed a rounded bottom formation breakout at 790 levels on the weekly chart, signalling the continuation of the medium-term uptrend.
• The stock is trending higher, forming a series of higher tops and bottoms. Furthermore, it continues to hold above its 20, 50, 100 and 200-day SMA's which reconfirms the bullish trend.
• Momentum indicators validate the bullish outlook, as the weekly and monthly RSI have positioned positively, acting as a leading signal and confirming renewed momentum.
• Additionally, the daily and weekly Bollinger Band buy signals reinforce the increased momentum and strengthen the positive setup.
• The above analysis indicates an upside toward 877-913 levels.

Can Fin Homes

Buy Range: 835-818, Stop loss: 785, Upside: 10%-13%, Duration: 3 to 4 weeks

• CANFINHOME has registered a decisive breakout above an inverse Head & Shoulder formation at 818 on the weekly chart, supported by a strong bullish candle, signalling a shift in momentum. This breakout is accompanied by huge volumes, which signal increased participation.
• The stock is trading well above its 20, 50, 100, and 200-day SMAs, reflecting robust underlying strength and a favourable trend structure.
• It closed above the weekly upper Bollinger Band, generating a buy signal.
• Momentum indicators further reinforce the bullish setup, with the weekly RSI holding above its horizontal resistance at 62 and staying firmly above its reference line, adding conviction to the positive outlook.
• The above analysis indicates an upside toward 910-935 levels.

Cholamandalam Investment and Finance Company

Buy Range: 1730-1695, Stop loss: 1625, Upside: 10%-13%, Duration: 3 to 4 weeks

• CHOLAFIN has been in a strong uptrend since across all the time frames, forming a series of higher tops and bottoms. It has also registered an all-time high at 1,752, which shows bullish sentiments.
• On the weekly chart, the stock has registered a decisive breakout above the multiple resistance zone, accompanied by a strong bullish candle, indicating a continuation of the medium-term uptrend.
• The stock is well placed above its 20, 50, 100 and 200-day SMA's and these averages are also inching up along with the price rise, which reconfirms the bullish trend.
• Momentum indicators also support this view, with the weekly and monthly RSI giving a bullish crossover above its reference line, thereby generating a fresh buy signal.
• The above analysis indicates an upside toward 1,885-1,935 levels.

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