Domestic brokerage firm Axis Securities has picked four stocks, namely – TVS Motors, NOCIL, Astral and Cholamandalam Financial Holdings (Chola Holdings) – in its weekly report. These stocks are headed for an upside of up to 15 per cent on a technical basis, said the brokerage. Investors can initiate a trade in these counters on a positional basis, with a view of 3-4 weeks, the analysts said in its report. Here’s what Axis Securities said about these stocks:
Cholamandalam Financial Holdings | Buy | Target Price: Rs 768-785 | Stop Loss: Rs 635
Cholamandalam Holdings on the weekly chart has decisively broken out above the ‘falling channel’ pattern at Rs 650 level with strong bullish candle indicating positive bias. The breakout is accompanied with an increase in volume confirming participation at breakout level. The stock holds above 50 per cent Fibonacci Retracement of a rally from Rs 225-762 placed at Rs 491 forming a medium-term support zone. The weekly strength indicator RSI is holding above its reference line indicates positive momentum. The above analysis indicates an upside of Rs 768-785 levels
NOCIL | Buy | Target Price: Rs 260-268 | Stop Loss: Rs 212
NOCIL on the weekly chart has decisively broken out above the ‘falling channel” pattern at Rs 215 level with strong bullish candle indicating reversal of trend. The breakout is accompanied with an increase in volume confirming participation at breakout level. The stock took a support at previous swing low placed around 200 level and bounce back forming a medium-term support zone. The weekly strength indicator RSI is holding above its reference line indicates positive momentum. The above analysis indicates an upside of Rs 260-268 levels.
Astral | Buy | Target Price: Rs 1600-1650 | Stop Loss: Rs 1,430
Astral on the weekly chart has decisively broken out above the medium term ‘falling channel’ at Rs 1,450 with bullish gap indicating an uptrend. The breakout is accompanied with an increase in volume confirming participation at breakout level. The stock is well placed above 20, 50, 100 and 200 daily SMA indicating positive momentum. The weekly strength indicator RSI is holding above its reference line indicates positive momentum. The above analysis indicates an upside of Rs 1600-1650 levels.
TVS Motor Company | Buy | Target Price: Rs 768-785 | Stop Loss: Rs 1,135
TVS Motor on the weekly chart has decisively broken out above the medium term ‘Consolidation Zone’ between Rs 1,180-960 with strong bullish candle indicating a range bound breakout. The stock holds above 38 per cent Fibonacci Retracement of a rally from Rs 513-1177 placed at 929 forming a medium-term support zone. The weekly ‘bollinger band’ generated buy signal as stock closed above the upper Bollinger Band. The weekly strength indicator RSI is in bullish mode and weekly RSI crossover above its reference line generated a buy signal. The above analysis indicates an upside of Rs 1,310-1,355 levels.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today)
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