Trade Call: Weekly Technical Picks From Axis Securities For Up To 21% Potential Upside

The Nifty started the week on a positive note and remained extremely volatile on either side throughout the week. It closed at 22213 on 23rd February, gaining 172 points on a weekly basis. Bank Nifty started the week on a positive note and traded with extreme volatility on either side throughout the week. It closed at 46812 on 23rd February, gaining 427 points on a weekly basis, according to the brokerage firm Axis Securities.

Weekly Nifty Outlook

On the weekly chart, the index has formed a small bullish candle with shadows on either side, indicating indecisiveness among participants regarding the direction. The chart pattern suggests that if Nifty crosses and sustains above the 22300 level, it would witness buying, leading the index towards 22500-22600 levels, said Axis Securities in a note.

However, if the index breaks below the 22100 level, it would witness selling, taking the index towards 22000-21800 levels. For the week, we expect Nifty to trade in the range of 22600-21800 with a positive bias. The weekly strength indicator RSI is above its respective reference lines, indicating a positive bias, the brokerage added.

Weekly Bank Nifty Outlook

"On the weekly chart, the index has formed a small bullish candle with shadows on either side, indicating indecisiveness among participants regarding the direction. The chart pattern suggests that if Bank Nifty crosses and sustains above the 47000 level, it would witness buying, leading the index towards 47200-47350 levels," Axis Securities said in a note.

"However, if the index breaks below the 46500 level, it would witness selling, taking the index towards 46400-46250 levels. For the week, we expect Bank Nifty to trade in the range of 47350-46250 with a mixed bias. The weekly strength indicator RSI is at the verge of crossing above its reference line, indicating that the trend may change to positive," the brokerage further stated.

Stocks To Buy This Week

The brokerage firm Axis Securities has recommended buying the below stocks this week for a potential upside of up to 21%.

Indus Towers

CMP: 240, Buy Range: 238-233, Stop loss: 216, Upside: 17% - 21%, holding period: 3 to 4 weeks

INDUSTOWER breached above the 'Multiple Resistance' zone around 230 level on the weekly chart, signaling a continuation of the medium-term uptrend. Increased volume activity at the breakout suggests an influx of market participation.

The stock is exhibiting a pattern of higher high-low formations on the weekly chart and holding above the medium-term upward-sloping trendline, signaling a medium-term 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 potential of 275-285 levels.

JSW Energy

CMP: 507, Buy Range: 507-497, stop loss: 474, upside: 11% -14%, holding period: 3 to 4 weeks

JSWENERGY exhibits a bullish breakout above the symmetrical triangular pattern at 505 on the daily chart, indicating the potential continuation of a medium-term uptrend.

Volume activity declined during the pattern formation; however, there was an increase in volume at the breakout, indicating heightened market participation. The stock is maintaining its position above the 38% Fibonacci Retracement level of the rally from 397-516, establishing a short-term support base of around 472.

The daily strength indicator RSI, having given a crossover above its reference line, generated a buy signal. The above analysis indicates an upside potential of 558-573 levels.

Godrej Properties

CMP: 2457, Buy Range: 2450-2402, Stop loss:2265, Upside: 13% -17%

On the weekly chart, GODREJPROP has breached the small 'Consolidation' zone between 2400-2170, suggesting a continuation of the medium-term uptrend. The stock is trending within an upward sloping channel, recently finding support at the lower band and now heading towards the upper band.

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, having given a crossover above its reference line, generated a buy signal.

The above analysis indicates an upside potential of 2750-2830 levels.

Indiabulls Housing Finance

CMP: 208, Buy Range:206-202, stop loss:187, upside: 17%-21%, holding period: 3 to 4 weeks

On the weekly chart, IBULHSGFIN has breached the 'Consolidation' zone between 202-160, suggesting a continuation of the medium-term uptrend. The previous resistance level of 202 is expected to now act as support due to the principle of polarity, providing a support zone for the stock's price movement.

The closing above the upper Bollinger Band on the daily chart has generated a buy signal in the short term. The weekly strength indicator RSI, having given a crossover above its reference line, also generated a buy signal.
The above analysis indicates an upside of 238-246 levels.

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.