Trade Call: Weekly Stock Picks By Rajesh Palviya of Axis Securities

Nifty started the previous week on a positive note but witnessed selling at higher levels, ending the week on a weak note at 21353 on 25th January with a loss of 219 points on a weekly basis. Bank Nifty started the week on a positive note but witnessed selling at higher levels, ending the week on a weak note at 44866 on 25th January with a loss of 1192 points on a weekly basis.

Nifty Outlook

On the weekly chart, the index has formed a bearish candle with a lower shadow, indicating buying at lower levels. The chart pattern suggests that if Nifty crosses and sustains above 21500 level, it would witness buying, leading the index towards 21600-21700 levels.

However, if the index breaks below 21250 level, it would witness selling, taking the index towards 21000-20900. For the week, we expect Nifty to trade in the range of 21700-20900 with a negative bias. The weekly strength indicator RSI and momentum oscillator Stochastic have both turned negative and are below their respective reference lines, indicating a profit booking, said Rajesh Palviya - SVP Research (Head Technical & Derivatives) at Axis Securities.

Bank Nifty Outlook

On the weekly chart, the index has formed a long bearish candle, creating a lower high-low compared to the previous week and closing below its low, indicating weakness at current levels. The chart pattern suggests that if Bank Nifty crosses and sustains above the 45000 level, it would witness buying, leading the index towards 45150-45350 levels.

However, if the index breaks below the 44700 level, it would witness selling, taking the index towards 44500-44400. For the week, we expect Bank Nifty to trade in the range of 45350-44400 with a negative bias. The weekly strength indicator RSI is moving downwards and quoting below its reference line, indicating a profit booking, said the analyst.

Stocks To Buy This Week

Rajesh Palviya of Axis Securities has recommended the below stocks to buy this week based on a technical analysis discussed here.

Fertilizers and Chemicals Travancore

Buy Range: 880-864, Stop loss: 799, Upside: 17% - 21%, holding period: 3 to 4 weeks

On the weekly chart, FACT breached the 'Ascending Triangular' pattern at the 865 level, indicating the initiation of an uptrend following a period of consolidation. The stock is exhibiting a pattern of higher high-low formations on the weekly chart, signaling a medium-term uptrend.

The closing above the upper Bollinger Band on the daily chart has generated a buy signal, indicating positive momentum even on a shorter time frame. The weekly strength indicator RSI is in a bullish mode and is holding above its reference line indicating a positive bias. The above analysis indicates an upside of 1020-1055 levels.

JK Lakshmi Cement

Buy Range: 920-902, Stop loss:826, Upside: 19% -24%, holding period: 3 to 4 weeks

On the weekly chart, JKLAKSHMI broke above the "Multiple Resistance" zone around the 915 level, signaling a continuation of the medium-term uptrend.

The increase in volume activity at the breakout suggests an influx of market participation, emphasizing the significance of the price movement. The stock is maintaining its position above the 38% Fibonacci Retracement level of the rally from 628 to 916, establishing a medium-term support base around 810.

The weekly strength indicator RSI given a crossover above its reference line generated a buy signal. The above analysis indicates an upside of 1080-1130 levels.

PNC Infratech

Buy Range: 410-402, Stop loss:377, Upside: 14% -18%, holding period: 3 to 4 weeks

On the weekly chart, PNCINFRA broke above the 'Cup and Handle' pattern at 390, signaling the commencement of an uptrend after two years of consolidation. Volume activity declined during pattern formation; however, there was an increase in volume at the breakout, indicating heightened 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 is holding above its reference line indicating a positive bias. The above analysis indicates an upside of 464-478 levels.

Punjab National Bank

Buy Range:104-102, Stop loss:94, Upside: 17%-21%, holding period: 3 to 4 weeks

On the weekly chart, PNB has broken out above the 'Multi-Year Resistance' zone around 99 with a bullish candle, signaling the continuation of a medium-term uptrend. The stock has already broken above the resistance at 99 on the weekly chart and is expected to confirm this on the monthly chart, indicating a continuation of the uptrend.

It is trending in rising channel formation. Recently stock took a support at lower band of channel and heading towards upper band of channel. The weekly strength indicator RSI is in a bullish mode and is holding above its reference line indicating a positive bias. The above analysis indicates an upside of 121-125 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.