Breakout Stocks: From Adani Ports To Metropolis - 4 Technical Picks By Axis Securities

For the week started from 27th May, the brokerage firm Axis Securities has suggested 4 breakout stocks to buy. The brokerage is bullish on Metropolis Healthcare, Samvardhana Motherson International, Adani Ports and Special Economic Zone and Emami Ltd as these stocks have a potential upside of up to 19%.

Weekly Nifty Outlook

"On the weekly chart, the index has formed a long bullish candle, forming a higher high-low compared to the previous week, and has closed above the previous week's high, indicating a positive bias. The chart pattern suggests that if Nifty crosses and sustains above the 23200 level, it would witness buying, leading the index towards 23400-23500 levels. However, if the index breaks below the 22800 level, it would witness selling, taking the index towards 22600-22500," said Axis Securities.

"For the week, we expect Nifty to trade in the range of 23500-22500 with a positive 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 further added.

Weekly Bank Nifty Outlook

"On the weekly chart, the index has formed a bullish candle, forming a higher high-low compared to the previous week, and has closed above the previous week's high, indicating a positive bias. The chart pattern suggests that if Bank Nifty crosses and sustains above the 49200 level, it would witness buying, leading the index towards 49400-49500 levels," the technical research analysts of Axis Securities said in a note.

"However, if the index breaks below the 48700 level, it would witness selling, taking the index towards 48500-48300. For the week, we expect Bank Nifty to trade in the range of 49500-48300 with a positive 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," they further added.

Stocks To Buy This Week

Axis Securities has suggested the below breakout stocks to buy this week based on technical analysis.

Emami

Buy Range: 540-530, stop loss: 509, duration: 3 to 4 weeks

Emami Ltd. has confirmed a breakout above the 'Bullish Flag' pattern at 524 on the daily chart, indicating the continuation of its uptrend. It is displaying a bullish trend on the daily chart, characterized by higher highs and higher lows, and is further supported by an upward sloping channel, suggesting a prevailing upward bias. The stock has established a support base at 511, holding above the 23% Fibonacci Retracement level of the rally from 417-538, indicating potential short-term support. The daily strength indicator RSI given a crossover above its reference line generated a buy signal. The above analysis indicates an upside of 587-615 levels.

Adani Ports and Special Economic Zone

Buy Range:1400-1372, stop loss:1308, duration: 3 to 4 weeks

ADANIPORTS has demonstrated a breakout above the consolidation zone of 1224-1400 on the weekly chart, with a strong bullish candle indicating the continuation of the uptrend. During the pattern formation, volume activity tends to decline, while at the breakout, there is an increase in activity, indicating heightened market participation.
The stock has established a support base at 1188, holding above the 38% Fibonacci Retracement level of the rally from 395-1425, indicating potential medium-term support. The weekly strength indicator RSI given a crossover above its reference line generated a buy signal. The above analysis indicates an upside of 1542-1585 levels.

Samvardhana Motherson International

Buy Range: 138-134, stop loss:130, time-frame: 3 to 4 weeks

On the daily chart, MOTHERSON has broken out above a two-year "Rounded Bottom" formation at 134, indicating a positive bias. The stock has broken above the weekly upper Bollinger Band, generating a buy signal. The stock is holding above key moving averages of 20, 50, 100, and 200 days, indicating an uptrend in both the short and medium term.

The weekly strength indicator RSI is holding above its reference line indicating positive bias. The above analysis indicates an upside of 148-155 levels.

Metropolis Healthcare

Buy Range: 1945-1907, stop loss:1785, duration: 3 to 4 weeks

METROPOLIS has confirmed a breakout above the 'Multiple Resistance' zone near 1900 on the weekly chart, indicating potential continuation of its uptrend. It is displaying a bullish trend on the weekly chart, characterized by higher highs and higher lows, and is further supported by an upward-sloping channel, suggesting a prevailing upward bias.

The weekly strength indicator RSI given a crossover above its reference line generated a buy signal. The weekly RSI breaking above horizontal resistance further confirms the breakout in prices. The above analysis indicates an upside of 2210-2285 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.