Trade Call: 3 Technical Stocks With Buy Rating For The Week By Axis Securities

The equity research analysts of Axis Securities have recommended 3 stocks to buy this week based on technical analysis. The last stock market week of 2023 is going to run from 26th December, Tuesday to 29th December, Friday. For the week the brokerage is bullish on the shares of Wipro, Patanjali Foods and Laurus Labs. Check the complete details of the technical analysis here covering buy range, target price and potential upside.

Nifty Outlook

Nifty started the week on a flat note and remained extremely volatile throughout a week. It closed at 21349 on December 22nd, registering a weekly loss of 107 points. On the weekly chart, the index formed a small bearish candle with shadows on either side, indicating indecisiveness among participants, said Axis Securities in a note.

"The chart pattern suggests that if Nifty crosses and sustains above the 21500 level, it would witness buying, which would lead the index towards 21600-21800 levels. An important support for the week is around 21100-21000. For the week, Nifty is expected to trade in the range of 21800-21000 with a mixed bias. The weekly strength indicator RSI and the momentum indicator Stochastic have turned flat, indicating a lack of strength," said the brokerage.

Bank Nifty Outlook

"Bank Nifty began the week on a negative note and remained extremely volatile throughout, closing at 47492 on December 22nd with a weekly loss of 652 points. On the weekly chart, the index formed a bearish candle but stayed within the high-low range of the previous week, indicating a lack of strength on either side. It also carries a long lower shadow, suggesting buying interest near the previous week's low," said the brokerage.

"The chart pattern suggests that if Bank Nifty crosses and sustains above the 47600 level, it could witness buying, leading to levels of 47800-48000. However, a break below the 47350 level may trigger selling, taking the index towards 47200-47000. For the week, Bank Nifty is expected to trade in the range of 48000-47000 with a mixed bias. The weekly strength indicator RSI and the momentum oscillator Stochastic have both turned flat, indicating a lack of strength on either side," said the research analysts of Axis Securities.

Stocks To Buy This Week

Here are the stock picks for the week by Axis Securities based on technical analysis.

Wipro

CMP: Rs 462, Buy Range: Rs 456-448, Stop loss: Rs 427, Upside: 11% - 17%

Wipro has recently demonstrated a robust breakout above the neckline of the 'Inverted Head & Shoulders' pattern at 444, accompanied by a strong bullish candle, indicating a positive bias. Volume activity increased during the breakout, indicating an influx of market participation. The stock is holding above key averages of 20, 50, 100, and 200 days Simple Moving Average (SMA), signaling a strong uptrend in the stock. The weekly strength indicator RSI is in a bullish mode and holding above its reference line indicating positive bias. The above analysis indicates an upside of 502-527 levels. Holding period is 3 to 4 weeks.

Patanjali Foods

CMP: 1625, Buy Range: 1620-1588, stop loss: 1490, Upside: 14% -18%

On the weekly chart, PATANJALI breached the 'Multiple Resistance Zone' around 1500 in the first week of December 2023 with a strong bullish candle, signaling the continuation of a medium-term uptrend. The stock underwent a retest of the breakout, rebounding and thereby confirming the validity of the breakout. It also underwent a brief consolidation within the range of 1500-1200 before the breakout, signifying positive momentum.

The weekly strength indicator RSI is in a bullish mode and holding above its reference line indicating positive bias.

The above analysis indicates an upside of 1830-1885 levels. Holding period is 3 to 4 weeks.

Laurus Labs

CMP: Rs 416, Buy Range: 413-405, Stop loss: 380, Upside: 14% -19%

On the weekly chart, LAURUSLABS broke above the downward-sloping trendline at 392 with a robust bullish candle, signaling the commencement of an uptrend. Volume activity increase during the breakout indicating influx of market participation. The stock found support at the 38% Fibonacci Retracement level of the rally from 278 to 418, positioned at 366, establishing a short-term support base.

The stock's daily close above the upper Bollinger band signals a buy, indicating potential bullish momentum. The weekly strength indicator RSI given a crossover above its reference line generated a buy signal. The above analysis indicates an upside of 467-485 levels. Holding period is 3 to 4 weeks.

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.