The top three stocks for the week, with potential gains of up to 19%, have been announced by brokerage company Axis Securities. The brokerage is bullish on stocks this week, from Vedanta to Canara Bank.
Readers can check out the technical outlooks of three stocks, as noted by Axis Securities, as well as the Nifty and Bank outlooks in this article.
Nifty Outlook For The Week
“On the weekly chart, Nifty formed a long bullish candle with a higher high- low structure, closing above the previous week’s high – a clear sign of strengthening positive momentum. The index is now approaching a crucial resistance near 25,500, where a downward-sloping trendline from the alltime high is placed. A decisive close above this level could open the door to 26,277, the all-time high. Immediate support lies at 25,058 (20-day SMA), with major support around 24,350,” said the technical research analysts of Axis Securities.
“A sustained move above 25,500 could drive the index towards 25,700-26,000, while a break below 25,150 may trigger declines towards 25,000-24,800. For the week, Nifty is expected to trade in a 26,000-24,800 range with a positive outlook. The weekly strength indicator RSI is above its respective reference lines, indicating a positive bias,” the analysts further added.
Bank Nifty Weekly Outlook
“On the weekly chart, the index formed a strong bullish candle with a higher high-low compared to the previous week and closed above the 20-week SMA (55,695), reinforcing a bullish setup. Strong follow-up buying post the downward sloping trendline breakout has pushed the index towards its alltime high of 57,628. Key support levels are placed at 55,600, with major supports at 54,300,” commented the technical research analysts of Axis Securities.
“A sustained move above 57,000 could trigger buying towards 57,400-57,700, while a break below 56,350 may lead to a decline towards 56,000-55,600. For the week, we expect Bank Nifty to trade in the 57,700-55,600 range with a positive bias. The weekly RSI has crossed above its reference line, reinforcing a positive momentum shift, while the Stochastic indicator remains in a bullish trajectory,” they further stated.
Stocks To Buy This Week
Here are the 3 technical stock picks for the week as recommended by Axis Securities.
Vedanta
Buy Range: 475-466, Stop loss: 446, Upside: 10% -14%, Holding period: 3 to 4 weeks
- VEDL has staged a decisive breakout above its Inverted Head and Shoulder pattern at 473 on the weekly chart, signalling the end of consolidation and the onset of the medium-term uptrend.
- The breakout, accompanied by rising volumes, lends conviction to the move and highlights further upside potential.
- The stock found support at the 50% Fibonacci retracement level of the 363- 473 rally, placed at 420, forming a strong medium-term support base and rebounding sharply from this zone.
- Momentum indicators further reinforce the bullish setup, with the weekly RSI crossing above its horizontal resistance at 55.7 and staying firmly above its reference line, adding conviction to the positive outlook.
- The above analysis indicates an upside toward 519-537 levels.
Sequent Scientific
Buy Range: 210-205, Stop loss: 192, Upside: 15%-19%, Holding period is 3 to 4 weeks
- SEQUENT has registered a decisive breakout above the medium-term downward sloping trendline at 210 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.
- It closed above the weekly upper Bollinger band, generating a buy signal.
- Momentum indicators further reinforce the bullish setup, with the weekly RSI holding above its horizontal resistance at 62 and staying firmly above its reference line, adding conviction to the positive outlook.
- The above analysis indicates an upside toward 239-247 levels.
Canara Bank
Buy Range: 124-121, Stop loss: 117, Upside: 9%-13%, Holding period is 3 to 4 weeks
- CANBK has registered a decisive breakout above the Multiple resistance zones around 125 on the weekly chart, signalling the continuation of a medium-term uptrend.
- Stock forming higher highs and lows on a weekly chart and holding above an upward-sloping trendline, indicating a positive bias.
- 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 is holding above its signal line, reinforcing the buy signal and strengthening the positive setup.
- The above analysis indicates an upside toward 134-139 levels.