Axis Securities Highlights Top Stock Picks: Union Bank of India, UPL, and The Phoenix Mills for Potential Gains

Axis Securities has identified its top stock picks for the week, focusing on Union Bank of India, UPL, and The Phoenix Mills. The brokerage anticipates potential gains of up to 13% within three to four weeks for these stocks. Their analysis is based on technical indicators that suggest promising upward trends.

The Nifty index began the week without much change but continued its previous downward trend, closing at 25,492, a decrease of 230 points. On the weekly chart, Nifty formed a bullish candle with a lower high-low structure, indicating persistent pressure at higher levels. The index moved back towards the trendline breakout zone near 25,450. Sustained strength above 25,650 is crucial to regain momentum post-breakout. Conversely, 25,000 remains a vital support level.

Analysts from Axis Securities stated, "A decisive move above 25,650 may spark buying interest toward 25,800-26,000, while a break below 25,400 could trigger selling pressure toward 25,200-25,000." They expect Nifty to trade between 26,000 and 25,000 with a negative bias in the coming week. The weekly RSI is nearing its reference line, indicating weakening momentum. Meanwhile, the Stochastic oscillator has turned down from the overbought zone, suggesting possible short-term consolidation or profit booking.

Bank Nifty opened the week flat and remained within a narrow range due to a lack of clear direction. It closed at 57,877 with a weekly gain of 100 points. On the weekly chart, Bank Nifty formed a bearish candle with shadows on both ends, reflecting increased volatility and indecision among traders. From a technical perspective, staying above 58,000 could trigger fresh buying momentum towards 58,500-59,000 levels.

Axis Securities' analysts noted that "Conversely, a break below 57,000 may invite renewed selling pressure, dragging the index lower toward 56,600-56,250." They anticipate Bank Nifty to trade between 59,000 and 56,250 with a slightly positive bias for the upcoming week. Both the weekly RSI and Stochastic oscillator have flattened out, indicating unclear momentum and suggesting potential consolidation until a decisive breakout occurs.

Top Stock Picks

Axis Securities recommends three stocks this week based on technical analysis: Union Bank of India is in a buy range of 151-148 with a stop loss at 143 and an expected upside of 8%-13%. The stock has broken out above its medium-term downward trendline at 152 on the weekly chart. This breakout is supported by a strong bullish candle indicating momentum shift.

The stock trades above its key moving averages (20-, 50-, 100-, and 200-day SMAs), showing robust strength and favourable trend structure. Momentum indicators confirm this bullish outlook as the weekly RSI has broken above its downward sloping trendline pattern. This acts as an early signal confirming renewed momentum.

UPL Ltd., another pick by Axis Securities, is in a buy range of 740-726 with a stop loss at 695 and an anticipated upside of 10%-13%. UPL is trending within a rising channel formation and recently rebounded sharply from its lower band. This indicates strong buying interest at support levels as it heads towards the upper band of the channel.

The stock has also broken above a medium-term downward sloping trendline around the 740 level since June '21. This breakout confirms a positive bias as it closed above the weekly upper Bollinger band generating a buy signal. Momentum indicators further strengthen this outlook with the weekly RSI holding firmly above the 50 mark.

The Phoenix Mills is in a buy range of 1740-1701 with a stop loss at 1655 and an expected upside of 8%-12%. The stock has decisively broken out above its Symmetrical Triangle pattern at 1,680 on the weekly chart. This signals an end to consolidation and continuation of its medium-term uptrend.

Volume activity was subdued during consolidation but spiked noticeably during breakout indicating strong market participation validating this breakout. On daily charts forming higher high-low structure holding above upward sloping trendline indicates positive short-term bias.

Momentum indicators reinforce this bullish setup as weekly RSI breaks above horizontal resistance at 55 remaining firmly above reference line adding conviction to positive outlook.

The information provided here reflects analysts' views from Axis Securities but does not represent Goodreturns.in or Greynium Information Technologies Private Limited's opinions or advice. Readers should verify details independently before making investment decisions as this content serves informational purposes only.