Weekly Technical Trade Call: 4 Stock Picks By Rajesh Palviya of Axis Securities

Nifty had a good start to the week and saw profit booking in the first half of the week. But buying strength at lower levels propelled the index higher, and on January 12th it closed higher, at 21895, a weekly gain of 184 points. Whereas Bank Nifty had a rough start to the week and saw profit booking in the first half. Nevertheless, buying activity at lower levels helped to erase some of the early losses. The weekly loss of 449 points was recorded by the Bank Nifty on January 12, closing at 47710. The US PPI data, India's inflation, and the Q3 results will all be watched by the market this week. A number of firms, including Asian Paints, HUL, Ultratech, ICICI Bank, and HDFC Bank, will make their Q3 results public which is likely to keep the market volatile. For the week starting from 15th January to 19th January, Rajesh Palviya SVP Research (Head Technical & Derivatives) at Axis Securities has initiated buy calls on 4 stocks based on technical analysis.

Weekly Nifty Outlook

On the weekly chart, the index has formed a small bullish candle with a long lower shadow, indicating buying near the 20-day daily SMA. The chart pattern suggests that if Nifty crosses and sustains above the 22000 level, it would witness buying, leading the index towards 22200-22300 levels. The important support for the week is around 21700-21500.

For the week, we expect Nifty to trade in the range of 22300-21500 with a positive bias. The daily and weekly strength indicator RSI is moving upwards and is quoting above its reference line, indicating a positive bias, said the analyst.

Weekly Bank Nifty Outlook

On the weekly chart, the index has formed a small bearish candle with a long lower shadow, indicating buying around the 47000 level. The chart pattern suggests that if Bank Nifty crosses and sustains above the 47850 level, it would witness buying, leading the index towards 48000-48200 Levels.

However, if the index breaks below the 47600 level, it would witness selling, taking the index towards 47400-47200. For the week, we expect Bank Nifty to trade in the range of 48200-47200 with a mixed bias. The weekly strength indicator RSI continues to remain flat above its reference line, indicating continuation of short-term consolidation, stated Rajesh Palviya.

Stocks To Buy This Week

Based on the results of technical analysis, Rajesh Palviya, SVP Research (Head Technical & Derivatives) at Axis Securities, has issued buy calls on four stocks for the weekly period January 15-19.

Amber Enterprises India

Buy Range: 3600-3528, Stop loss: 3350, Upside: 12% - 16%

On the weekly chart, AMBER breached the 'Consolidation Zone' between 3500-2800 range with a strong bullish candle, signaling the continuation of a medium-term uptrend. It is following a rising channel formation since mid-June 2023, suggesting a medium-term uptrend. It recently found support at the lower boundary of the channel and is currently advancing towards the upper boundary of the channel. The weekly strength indicator RSI given a crossover above its reference line generated a buy signal. The above analysis indicates an upside of 3992-4150 levels in a holding period of 3 to 4 weeks.

Union Bank of India

Buy Range: 129-126, Stop loss:122, Upside: 9% -14%

On the weekly chart, UNIONBANK has been following an upward channel formation since mid-June 2023, finding recent support at the lower band, experiencing a sharp rebound, and currently advancing towards the upper band of the channel. It also breached above the small 'Consolidation Zone' between 129-112 with a strong bullish candle, signaling the continuation of a medium-term uptrend. 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 given a crossover above its reference line generated a buy signal. The above analysis indicates an upside of 139-145 levels based on a holding period of 3 to 4 weeks.

HCL Technologies

Buy Range: 1510-1480, Stop loss:1430, Upside: 9% -14%

On the weekly chart, HCLTECH broke above the 'Bullish Flag' pattern at 1490 with a strong bullish candle, signaling the continuation of a uptrend. 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. 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 1625-1700 levels. The holding period is 3 to 4 weeks.

Oil & Natural Gas Corporation

Buy Range:220-215, Stop loss:209, Upside:8%-12%

On the weekly chart, ONGC has broken out above the 'Multi-Year Resistance' level at 215 with a bullish candle, signaling the continuation of a medium-term uptrend. The prior resistance zone around 215, is expected to function as a support zone, aligning with the "Principle of Change in Polarity" in technical Analysis. The stock has closed above the weekly upper 'Bollinger Band,' signaling a medium-term buy opportunity. The weekly RSI is consistently holding above the upward-sloping trendline, confirming strength of uptrend in prices. The above analysis indicates an upside of 235-245 levels. The 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.