Axis Securities Identifies Hindalco, Can Fin Homes, and Cholamandalam for Potential Upside Gains

Axis Securities has identified Hindalco Industries, Can Fin Homes, and Cholamandalam Investment & Finance Company as stocks showing significant technical breakouts. These stocks have potential upside targets of 10%-13% over the next three to four weeks. Investors are advised to monitor these levels closely as momentum indicators currently favour a bullish trend.

The Nifty index formed a "doji" candle with a long upper shadow on the weekly chart, indicating a short-term pause in its recent uptrend. The index remains above the medium-term downward sloping trendline, suggesting a continued uptrend. Support is found between 25,500-25,300, with major support at 25,230 (20-day SMA). A move above 26,000 could lead to buying towards 26,100-26,300 levels.

For the upcoming week, Nifty is expected to trade within the 26,300-25,500 range with a positive bias. The weekly RSI remains above its reference line, reinforcing the bullish undertone. Meanwhile, Bank Nifty also formed a doji candle with a higher high-low structure on the weekly chart, indicating underlying strength and positive sentiment.

Hindalco Industries is trending higher with an all-time high at 826 and a rounded bottom formation breakout at 790 levels on the weekly chart. The stock is forming higher tops and bottoms while holding above its 20, 50, 100, and 200-day SMAs. Momentum indicators validate this bullish outlook with an upside potential towards 877-913 levels.

Can Fin Homes has registered a decisive breakout above an inverse Head & Shoulder formation at 818 on the weekly chart. This breakout is supported by a strong bullish candle and significant volumes. The stock trades above its 20, 50, 100, and 200-day SMAs and closed above the weekly upper Bollinger Band. Momentum indicators reinforce the bullish setup with an upside potential towards 910-935 levels.

Cholamandalam Investment & Finance Company has been in a strong uptrend across all time frames. It registered an all-time high at 1,752 and broke out above multiple resistance zones on the weekly chart. The stock is well placed above its moving averages which are rising along with the price. Momentum indicators support this view with an upside potential towards 1,885-1,935 levels.

The Bank Nifty's chart structure indicates that breaking below the 57,400 level could trigger profit booking towards 57,000-56,500 levels. Conversely, moving above 58,300 may lead to momentum towards 58,600-59,000 levels. For the week ahead, Bank Nifty is expected to trade within the 59,000-57,000 range with a positive bias. The weekly RSI confirms bullish momentum.

"On the weekly chart," said Axis Securities' technical research analysts regarding Bank Nifty's outlook: "Bank Nifty formed a doji candle with a higher high-low structure." They added that this indicates underlying strength and positive sentiment.

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