Trade Call: 4 Technical Picks For The Week By Rajesh Palviya of Axis Securities

Nifty started the week on a flat note and traded with extreme volatility after closing at 21711 on 5th January with a loss of 21 points on a weekly basis. The Bank Nifty, on the other hand, had a bad start to the week and was quite volatile throughout. On January 5, the Bank Nifty wrapped up at 48159, down 133 points for the week. Rajesh Palviya, Head of Technical & Derivative Research at Axis Securities, has advised four stocks to buy this week amidst the present market volatility resulting from Q3 earnings and inflation data from the US, China, and India that are coming this week.

Nifty Outlook

On the weekly chart, the index has formed a small bearish candle with shadows on either side, indicating indecisiveness among participants regarding the direction. The chart pattern suggests that if Nifty crosses and sustains above 21800 level, it would witness buying, leading the index towards 21900-22000 levels.

However, if the index breaks below 21600 level, it would witness selling, taking the index towards 21500-21300. For the week, we expect Nifty to trade in the range of 22000-21300 with a positive bias. The weekly strength indicator RSI is moving upwards and is quoting above its reference line, indicating a positive bias, said Rajesh Palviya.

Bank Nifty Outlook

On the weekly chart, the index has formed a small bearish candle with shadows on either side, indicating indecisiveness among participants regarding the direction. The chart pattern suggests that if Bank Nifty crosses and sustains above 48250 levels, it would witness buying, leading the index towards 48400-48600 levels.

However, if the index breaks below 48000 levels, it would witness selling, taking the index towards 47800-47600. For the week, we expect Bank Nifty to trade in the range of 48600-47600 with a mixed bias. The weekly strength indicator RSI continues to remain flat above its reference line, indicating a positive bias. However, the momentum oscillator Stochastic has turned negative from the overbought zone, indicating a possible consolidation or a profit booking in the near term, stated the analyst.

Stocks To Buy This Week

Rajesh Palviya, Head of Technical & Derivative Research at Axis Securities has recommended 4 stocks to buy this week based on technical analysis.

Uno Minda

Buy Range: 703-689, Stop loss: 660, target: 768-800 level

In the last week of November 2023, UNOMINDA demonstrated a robust breakout above the 'Multiple Resistance' zone at 640 on the weekly chart, supported by a strong bullish candle, indicating a positive bias.

The stock rebounded to 695, experienced a throwback to the breakout zone, and subsequently rallied beyond the swing high of 695, signaling the continuation of the uptrend. It is following a rising channel formation since mid-April 2023, suggesting a medium-term uptrend.

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 768-800 levels within an holding period of 3 to 4 weeks.

Zomato

Buy Range: 133-130, Stop loss:122, target: 150-155 levels

On the weekly chart, ZOMATO breached the 'Consolidation Zone' between 130-113 with a strong bullish candle, signaling the continuation of a medium-term uptrend.

The stock is currently trending within an upward channel formation and recently found support at the lower band, followed by a sharp rebound, indicating a positive momentum. 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.signaling a strong uptrend in the stock.

The weekly strength indicator RSI given a crossover above its reference line generated a buy signal. The above analysis indicates an upside of 150-155 levels within a holding period of 3 to 4 weeks.

Finolex Industries

Buy Range: 234-230, Stop loss:221, target: 254-263 levels

On the weekly chart, FINPIPE broke above the short-term 'Falling Channel' pattern at 215 with a strong bullish candle, signaling a positive momentum.

The breakout is accompanied by an increase in volume activity, suggesting a surge in market participation. The stock is establishing higher highs and higher lows, while maintaining its position above the medium-term upward-sloping trendline, suggesting a continued uptrend.

A close above the daily upper Bollinger band for the stock signals a buy, suggesting 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 254-263 levels in a holding period of 3 to 4 weeks.

Computer Age Management Services

Buy Range:2750-2696, Stop loss:2613, target: 2945-3050 levels

On the weekly chart, CAMS has broken out above the "Bullish Flag" pattern at the 2700 level with a bullish candle, signaling the continuation of a uptrend. The stock experienced a throwback to the breakout zone around 2680, followed by a sharp rebound, confirming the breakout from the Multiple Resistance.

The prior resistance zone around 2680, established since the beginning of 2022, is expected to function as a support zone, aligning with the "Principle of Change in Polarity" in"Principle of Change in Polarity" in technical analysis.
The weekly RSI is consistently holding above the upward-sloping trendline, confirming strength of uptrend in prices. The above analysis indicates an upside of 2945-3050 levels in a duration of 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.