Weekly Technical Picks: Axis Securities Lists 3 Stocks To Buy/Sell This Week

The brokerage firm Axis Securities has listed 3 stocks to buy this week on a technical basis. Nifty and Bank Nifty both started the previous week on a flat note and on September 29, Nifty ended at 19638 with a loss of 36 points on a weekly basis while Bank Nifty closed at 44585 with a loss of 28 points on 29th September 2023. Amid a volatile market, the brokerage firm is bullish on Aurobindo Pharma, Dalmia Bharat and Precision Wires India.

Nifty Outlook

"On the weekly chart, the index has formed a 'Doji' candlestick formation indicating indecisiveness among market participants regarding the direction. The chart pattern suggests that if Nifty crosses and sustains above the 19750 crosses and sustains above the 19750 level, it would witness buying, leading the index towards 19900-20000 levels. However, if the index breaks below the 19500 level, it would witness selling, taking the index towards 19400-19200," said the brokerage.

"For the week, we expect Nifty to trade in the range of 20000-19200 with a mixed bias. The weekly strength indicator RSI continues to remain flat and is below its reference line, indicating the absence of momentum on either side," said Axis Securities in a note.

Bank Nifty Outlook

"On the weekly chart, the index has formed a 'Doji' candlestick formation indicating indecisiveness among market participants regarding the direction. The chart pattern suggests that if Bank Nifty crosses and sustains above the 44750 level, it would witness buying, leading the index towards 44900-45000 levels. However, if the index breaks below the 44450 level, it would witness selling, taking the index towards 44250-44100," added the brokerage.

"For the week, we expect Bank Nifty to trade in the range of 45000-44100 with a mixed bias. The weekly strength indicator RSI continues to remain flat and is below its reference line, indicating the absence of momentum on either side," said the research analysts of Axis Securities in a note.

Stocks To Buy This Week

Here are the 3 technical stock picks for the week by Axis Securities with a potential upside ranging from 10% to 14%. For the below-recommended stocks by the brokerage, the holding period is 3 to 4 weeks.

Aurobindo Pharma

AUROPHARMA has displayed a compelling breakout above a substantial consolidation zone spanning from 905 to 818 on the weekly chart, further validated by a notable gap up on the daily chart. These setup strongly reinforce the likelihood of a continued medium-term uptrend for the stock. The stock is establishing a pattern of higher high-low on the weekly chart forming upward sloping trendline. The stock has established a medium-term support level at 816, which corresponds to a 23% Fibonacci retracement from the price range of 581-888. The weekly strength indicator RSI given a crossover above its reference line generated a buy signal. The above analysis indicates an upside of 1009-1025 levels, said Axis Securities.

Dalmia Bharat

DALBHARAT has demonstrated a robust breakout from a medium-term "Rounded-Bottom" pattern at the 2280 level on the weekly chart in the initial week of September 2023. The stock retested the breakout area and bounced back sharply, affirming the continuation of the uptrend. The stock has established a medium-term support level at 2216, which corresponds to a 38% Fibonacci retracement from the price range of 1873-2425. The weekly strength indicator RSI is moving upwards and is above its reference line indicating positive bias. The above analysis indicates an upside of 2600-2700 levels, stated the brokerage firm.

Precision Wires India

On the daily chart, PRECWIRE has successfully broken out above a "Consolidation zone" ranging from 117 to 128, accompanied by a sizable bullish candle, which signifies the continuation of uptrend. The stock, currently trading within a rising channel, found support at the lower band and is now trending towards lower band and is now trending towards the upper band, indicating a bullish momentum. The stock is well-placed above key moving averages of 20, 50, 100, and 200 days, daily SMA, indicating positive momentum in the stock. The weekly strength indicator RSI is moving upwards and is above its reference line indicating positive bias. The above analysis indicates an upside of 147-152 levels, claimed Axis Securities.

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.