Axis Securities, a brokerage company, released a weekly technical outlook for Nifty and Bank Nifty along top picks for the week. Axis Securities is optimistic about three stocks this week: Rashtriya Chemicals and Fertilizers Ltd., Supreme Industries, and Uno Minda.
According to the brokerage, these stocks have the potential to provide an 8-19% gain over the course of three to four weeks.
Nifty Weekly Outlook
“On the weekly chart, the index formed a small bearish candle with a long upper shadow, reflecting selling pressure near the 61.8% Fibonacci retracement of the 25,669-24,337 decline, placed at 25,160. While the index has broken above the falling channel, resistance at 25,250 remains crucial-only a decisive close above this level may trigger further upside,” Axis Securities said in a note.
“On the downside, the bullish gap zone at 24,853-24,674 and the 20- day SMA near 24,740 are expected to act as key support. Above 25,000, Nifty may head towards 25,250-25,500; while below 24,800, downside opens to 24,650-24,500.
For the week, we expect Nifty to trade within 25,500-24,500, with a mixed bias.
Importantly, the weekly RSI has turned positive and is holding above its reference lines, signalling an underlying positive bias,” Axis Securities further added.
Bank Nifty Weekly Outlook
“On the weekly chart, the index has formed a long bearish candle with a lower high-low formation, closing below its prior week’s low-a clear sign of weakness.
It also closed below the 20-week SMA placed at 55,434 and faced resistance at the upper band of the falling channel, further reinforcing bearish sentiment,” Axis Securities confirmed in a report.
“The chart setup indicates that a sustained move above 55,650 could trigger buying towards 56,000-56,350, while a break below 55,000 may accelerate selling towards 54,500- 54,000. For the week, we expect Bank Nifty to trade in a broad range of 56,350- 54,000 with a negative bias. The weekly RSI remains in the negative territory, confirming the weak momentum,” as per the research analysts of Axis Securities.
Stocks To Buy This Week
The technical analysts of Axis Securities have recommended the below stocks to buy this week for healthy potential gains.
Uno Minda
Buy Range:1245-1221, Stop loss: 1179, Upside: 9% -12%
- UNOMINDA has decisively broken above multiple resistance zones near 1,210 on the weekly chart, supported by a strong bullish candle, reinforcing the continuation of its medium-term uptrend.
- The breakout is backed by rising volumes, adding conviction to the price action and indicating further upside potential.
- Furthermore, the stock has also broken above the resistance zone with a breakaway gap, further strengthening the technical outlook.
- Momentum indicators are aligned with the bullish trend, as the weekly RSI stays firmly above 50 and its signal line continues to slope upward, confirming strong underlying momentum.
- The above analysis indicates an upside potential toward 1,341-1,385 levels.
- The holding period is 3 to 4 weeks.
Supreme Industries
Buy Range:4550-4460, Stop loss: 4313, Upside: 8%-13%
- SUPREMEIND has registered a decisive breakout above the inverted head and shoulder pattern at 4,535 on the weekly chart, accompanied by a strong bullish candle, marking the end of its consolidation phase and the beginning of a new uptrend.
- The stock is now trading firmly above all key moving averages the 20, 50, 100, and 200-day SMAS-highlighting its robust underlying strength and improving trend structure.
- Adding to the bullish setup, the weekly RSI has crossed above its signal line and broken out of a downward sloping trendline, confirming renewed momentum and reinforcing the positive bias.
- A sustained move above recent swing highs could pave the way for a sharp rally in the coming weeks.
- The above analysis indicates an upside toward 4,885-5,085 levels.
- The holding period is 3 to 4 weeks.
RashtriyaChemicals and Fertilizers
Buy Range:157-155, Stop loss: 144, Upside: 15%-19%
- RCF has decisively surpassed a medium-term downwards sloping trendline at 155 on the weekly chart, supported by a strong bullish candle, reinforcing the onset of its medium-term uptrend.
- Stock also broke above a small falling channel, with increased volume activity indicating market participation at the breakout.
- The stock continues to exhibit a higher high-higher low formation and remains well above its upward-sloping trendline, reflecting sustained buying interest.
- Momentum indicators are aligned with the bullish trend, as the weekly RSI crosses above its signal line, confirming strong underlying momentum.
- The above analysis indicates an upside potential toward 180-185 levels.
- The holding period is 3 to 4 weeks.