Weekly Trading Guide: 3 Technical Stock Picks By Axis Securities To Buy This Week

The Nifty index began the week flat and maintained its upward momentum, but selling pressure in the previous week's high caused the index to decline and ended the week in the negative. On October 20, Nifty wrapped up at 19543, a weekly loss of 208 points.

Bank Nifty, on the other hand, had a rough start to the week and continued to be quite volatile, however, it ended at 43723 on October 20th, a loss of 565 points for the week. This week, the brokerage firm Axis Securities has picked up 3 stocks with buy ratings as the brokerage expects Nifty to trade in the range of 19900-19200 with a mixed bias and Bank Nifty to trade in the range of 44300-43300 with a mixed bias.

Nifty Outlook This Week

The technical analysts of Axis Securities said in a note that "On the weekly chart, the index has formed a bearish candle; however, it remained restricted within the previous week's High-Low range, indicating the absence of strength on either side. The chart pattern suggests that if Nifty crosses and sustains above the 19650 level, it would witness buying, leading the index towards 19750-19900 levels."

"However, if the index breaks below the 19450 level, it would witness selling, taking the index towards 19300-19200. For the week, we expect Nifty to trade in the range of 19900-19200 with a mixed bias. The weekly strength indicator RSI is moving downwards and is quoting below its reference line, indicating a negative bias in a short term," they further added.

Bank Nifty Outlook This Week

Rajesh Palviya - SVP Research (Head Technical & Derivatives), Vaishnavi Jagtap and Rayyan Kuwari technical analysts of Axis Securities said in a report that "On the weekly chart, the index has formed a bearish candle with a long upper shadow indicating selling at the 20-week SMA placed at 44606. The chart pattern suggests that if Bank Nifty crosses and sustains above the 43900 level, it would witness buying, leading the index towards 44100-44300 levels."
"However, if the index breaks below the 43500 level, it would witness selling, taking the index towards 43400-43300. For the week, we expect Bank Nifty to trade in the range of 44300-43300 with a mixed bias. The weekly strength indicator RSI is moving downwards and is quoting below its reference line, indicating a negative bias in the short term," they further stated

Stocks To Buy This Week

The above-mentioned derivatives and technical research analysts of Axis Securities have recommended the below technical stocks to buy this week.

K.P.R. Mill

Buy in the range of Rs 815-799, stop-loss: Rs 760, target: Rs 900-950 levels

KPRMILL has demonstrated a robust breakout from a medium-term "Multiple Resistance" zone around the 775 level on the weekly chart with a strong bullish candle indicating positive bias. The stock experienced a surge in trading volume during the breakout, indicating a substantial increase in market participation at the breakout level.

The stock is exhibiting a pattern of higher highs and lows on the weekly chart, forming an upward-sloping chart, forming an upward-sloping trendline, indicating a strong uptrend. The weekly strength indicator RSI given a crossover above its reference line generated a buy signal. The above analysis indicates an upside of 900-950 levels.

Colgate Palmolive (India)

Buy in the range of Rs 2100-2058, stop-loss: Rs 2020, target: Rs 2200-2285 levels.

On the weekly chart, COLPAL, after a sharp rally, entered a consolidation phase and has recently broken out above the consolidation zone between the 2060-1920 range, indicating a strong continuation of the uptrend. The stock is currently following a channel formation, having found support at the lower band recently. It is anticipated to move towards the upper band of the channel.

Volume activity during the pattern formation period declined, but it surged at the breakout, reaffirming the positive at the breakout, reaffirming the positive bias in the stock trend. The weekly strength indicator RSI given a crossover above its reference line generated a buy signal. The above analysis indicates an upside of 2200-2285 levels.

MTAR Technologies

Buy in the range of Rs 2750-2696, stop-loss: Rs 2585, target: Rs 3000-3100 levels

MTARTECH broke above the horizontal resistance at 2500, forming a base around this level. According to the principle of polarity, the previous resistance at 2500 is expected to act as a support going forward. The stock rebounded to 2920, experienced a throwback to the breakout area, and then sharply bounced back, retesting and confirming the breakout zone.

The stock is holding above key averages of 20, 50, 100, and 200 days Simple Moving Average (SMA), signalling 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 3000-3100 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.