Weekly Technical Picks: 4 Stocks To Buy This Week As Recommended By Axis Securities

Nifty started the week on a positive note and remained consolidated for most part of the week which led the index to close on a flat note. Bank Nifty started the week on a flat note and remained in a narrow range between 49057- 48420 level throughout the week, indicating a lack of strength on either side.

Nifty Outlook

On the weekly chart, the index has formed a bearish candle with an upper shadow, indicating profit booking at higher levels. The chart pattern suggests that if Nifty crosses and sustains above 22800 level, it would witness buying, leading the index towards 23000-23500 levels. However, if the index breaks below 22500 level, it would witness selling, taking the index towards 22200-22000. For the week, we expect Nifty to trade in the range of 22700-22200 with mixed bias. The weekly strength indicator RSI is above its respective reference lines, indicating a positive bias, said Axis Securities in a note.

Bank Nifty Outlook

On the weekly chart, the index has formed a "Doji" candlestick formation, indicating indecisiveness amongst market participants regarding the direction. The chart pattern suggests that if Bank Nifty crosses and sustains above 49000 level, it would witness buying, leading the index towards 49500-49900 levels. However, if the index breaks below 48300 level, it would witness selling, taking the index towards 48000-47500. For the week, we expect Bank Nifty to trade in the range of 49500-48000 with a mixed bias. The weekly strength indicator RSI and momentum oscillator Stochastic have both turned positive and are above their respective reference lines, indicating a positive bias, the brokerage stated.

Stocks To Buy This Week

The brokerage firm Axis Securities is bullish on 4 stocks for the week for a potential upside of up to 18% in a duration of 3 to 4 weeks.

Petronet Lng

Buy Range: 298-293, Stop loss: 277, target: 333-347 levels

On the weekly chart, PETRONET has broken out almost four years " multiple resistance" zone of 300 levels on a closing basis. On the weekly time frame "Flag" formation breakout is accompanied by a robust bullish candle, indicating a potential continuation of the prior uptrend. Volume activity has increased at the breakout, indicating a surge in market participation at the breakout. The daily and weekly strength indicator RSI given a crossover above its reference line generated a buy signal. The above analysis indicates an upside of 333-347 levels.

Metropolis Healthcare

Buy Range: 1820-1784, stop loss:1675, target: 2060-2135 levels

METROPOLIS has exhibited a breakout above the 'Multiple Resistance' zone around 1800 on the weekly chart, indicating a positive bias. Currently the stock is well placed and sustaining above its 20, 50, 100 and 200 day SMA which reconfirms bullish sentiments. The stock is forming higher tops and higher bottoms on the weekly chart, indicating an upward bias. The weekly Relative Strength Index (RSI) has also given a positive crossover , confirming the movement in the stock price. The above analysis indicates an upside of 2060-2135 levels.

Central Depository Services (India)

Buy Range: 1980-1942, Stop loss:1850, target: 2185-2250 levels

On the weekly chart, CDSL has broken out above the 'Falling Channel' pattern at 1940, signaling a shift in trend towards a positive bias. This breakout is accompanied with huge volume spurt indicating a strong comeback of bulls. Daily "band Bollinger" buy signal signifies increased momentum. The weekly strength indicator RSI given a crossover above its reference line generated a buy signal. The above analysis indicates an upside of 2185-2250 levels.

Aegis Logistics

Buy Range:475-467, Stop loss:436, target: 541- 555 levels

On the daily chart, AEGISCHEM has broken out above an "inverse Head & Shoulder" pattern at 460, accompanied by a strong bullish candle, signaling a positive bias. It has also registered an all time high at 485 levels indicating bullish sentiments. The stock is maintaining levels above key moving averages, including the 20, 50, 100, and 200-day SMAs, suggesting a positive bias in its trend. The weekly strength indicator RSI given a crossover above its reference line generated a buy signal. The above analysis indicates an upside of 541- 555 levels.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.