Union Bank To UPL: 3 Technical Stock Picks By Axis Securities For Up to 13% Upside In 3-4 Weeks

The brokerage firm Axis Securities has released its top stock picks for the week based on technical analysis. This week, the brokerage is bullish on Union Bank of India, UPL and The Phoenix Mills for an upside gain of up to 13% in a duration of 3 to 4 weeks.

Nifty Weekly Outlook

"Nifty started the week on a flat note but extended its previous week's weakness to end lower. The index closed at 25,492, down 230 points for the week. On the weekly chart, Nifty formed a bullish candle with a lower high-low structure, signalling continued pressure at higher levels. The index witnessed a throwback towards the trendline breakout zone near 25,450. Sustained strength above 25,650 will be essential to reignite the post-breakout momentum, while on the downside, 25,000 remains a crucial support level," commented the technical research analysts of Axis Securities.

"A decisive move above 25,650 may spark buying interest toward 25,800-26,000, while a break below 25,400 could trigger selling pressure toward 25,200-25,000. For the week ahead, we expect Nifty to trade within a range of 26,000-25,000 with a negative bias. The weekly RSI is on the verge of slipping below its reference line, reflecting waning momentum, while the Stochastic oscillator has turned down from the overbought zone, indicating the likelihood of short-term consolidation or profit booking," they further added.

Bank Nifty Outlook This Week

"Bank Nifty started the week on a flat note and traded within a narrow range, reflecting a lack of directional conviction. The index eventually closed at 57,877, with a weekly gain of 100 points. On the weekly chart, Bank Nifty formed a bearish candle with shadows on both ends, indicating heightened volatility and indecisiveness among market participants. From a technical standpoint, a sustained move above 58,000 could trigger fresh buying momentum, lifting the index toward 58,500-59,000 levels," commented the technical research analysts of Axis Securities.

"Conversely, a break below 57,000 may invite renewed selling pressure, dragging the index lower toward 56,600-56,250. For the week ahead, we expect Bank Nifty to trade within a broad range of 59,000-56,250 with a slightly positive bias. The weekly RSI and Stochastic oscillator have both turned flat, signalling a lack of clear momentum and suggesting that the index may continue to consolidate until a decisive breakout occurs," they added.

Stocks To Buy This Week

Below are the 3 technical stock picks by Axis Securities.

Union Bank of India

Buy Range: 151-148, Stop loss: 143, Upside: 8% -13%

• UNIONBANK has registered a decisive breakout above the medium-term downward sloping trendline at 152 on the weekly chart, supported by a strong bullish candle, signalling a shift in momentum.
• The stock is trading well above its 20, 50, 100, and 200-day SMAs, reflecting robust underlying strength and a favourable trend structure.
• Momentum indicators validate the bullish outlook, as the weekly RSI has broken above its downward sloping trendline pattern, acting as a leading signal and confirming renewed momentum.
• Additionally, the RSI has crossed above its signal line, reinforcing the buy signal and strengthening the positive setup.
• The above analysis indicates an upside toward 162-169 levels.

UPL Ltd.

Buy Range: 740-726, Stop loss: 695, Upside: 10%-13%

• UPL is trending within a rising channel formation and has recently rebounded sharply from the lower band, indicating strong buying interest at support levels. The stock is now heading towards the upper band of the channel, suggesting continuation of the prevailing uptrend.
• Additionally, the stock has broken above a medium-term downward sloping trendline, in place since Jun'21, around the 740 level-a breakout that confirms a positive bias.
• It closed above the weekly upper Bollinger band, generating a buy signal.
• Momentum indicators further strengthen this outlook, with the weekly RSI holding firmly above the 50 mark and trending above its reference line, signalling sustained strength and rising momentum.
• The above analysis indicates an upside toward 809-826 levels.

The Phoenix Mills

Buy Range: 1740-1701, Stop loss: 1655, Upside: 8%-12%

• PHOENIXLTD has staged a decisive breakout above its Symmetrical Triangle pattern at 1,680 on the weekly chart, signalling the end of consolidation and the continuation of the medium-term uptrend.
• Volume activity remained subdued during the consolidation phase but spiked noticeably during the breakout, indicating strong market participation, thereby validating the breakout.
• On the daily chart, the stock is forming a higher high-low structure and holding above the upward sloping trendline, indicating a positive short-term bias.
• Momentum indicators further reinforce the bullish setup, with the weekly RSI breaking above horizontal resistance at 55 and remaining firmly above its reference line, adding conviction to the positive outlook.
• The above analysis indicates an upside toward 1,855-1,935 levels.

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