The Indian stock market continued their northbound journey for the fourth straight session on Tuesday, July 18, with the Sensex and Nifty crossing 67,000 and 19,800, respectively, amid buying seen in the information technology (IT), power and capital goods stock.
For the week, analysts at Axis Securities expect Nifty to trade in the range of 19900-19200 with a positive bias. The weekly strength indicator relative strength index (RSI) is above its respective reference lines, indicating a positive bias.
Meanwhile, Bank Nifty will likely trade in the range of 45400-44400 with a mixed bias for the week. The weekly strength indicator RSI continues to remain flat, indicating absence of strength.
Axis Securities' weekly top 4 tech picks —
Based on the technical factors, the brokerage has suggested three stocks — L&T Technology Services, UTI Asset Management Company, National Aluminum Company and Balkrishna Industries — that investors can look to buy and hold for the next three to four weeks.
L&T Technology Services: On the daily chart, LTTS has convincingly broken out above the notable "Consolidation" pattern, surpassing the 4020 level, indicating a positive bias.
During the consolidation period, the trading volume exhibited a noticeable decline. At the point of breakout, there was a significant surge in volume, suggesting a renewed influx of market participants.
The stock holds above 61.8 percent Fibonacci Retracement of a rally from 3300-4000 placed at 3738 forming a medium term support zone.
The weekly strength indicator RSI is in given a crossover above its reference line generated a buy signal.
The brokerage has given a buying range between Rs 4080-3998. The above analysis indicates an upside of 4475-4585 levels (11–14 percent) with a stop loss at Rs 3820. Holding period is 3 to 4 weeks.
UTI Asset Management Company: UTIAMC, on the weekly chart, has successfully breached the prominent "Descending Triangular" pattern,
surpassing the key level of 820, thus indicating a favorable bias.
The stock has decisively surpassed key daily moving averages of 20, 50, 100, and 200, signaling a positive bias.
The weekly "Bollinger band" generated buy signal as stock closed above the upper Bollinger Band.
The weekly strength indicator RSI is holding above its reference line indicates positive momentum.
The brokerage has given a buying range between Rs 825-809. The above analysis indicates an upside of 927-955 levels (13–17 percent) with a stop loss at Rs 762. Holding period is 3 to 4 weeks.
Balkrishna Industries: On the weekly chart, Balkrishna Industries has successfully breached the prominent "Symmetrical Triangular" pattern,
surpassing the key level of 2230, thus indicating a favorable bias.
The stock initially moved towards the level of 2500, where it experienced a throwback. However, it subsequently exhibited a strong bounce back,
indicating a retest of the breakout area.
The stock is exhibiting a higher highlow formation on the daily chart, which suggests the presence of positive momentum.
The weekly strength indicator RSI (relative strengeth index) is holding above its reference line indicates positive momentum.
The brokerage has given a buying range between Rs 2435-2387. The above analysis indicates an upside of 2685-2730 levels (11–13 percent) with a stop loss at Rs 2275. Holding period is 3 to 4 weeks.
National Aluminum Company: On the weekly chart, National Aluminum has decisively broken out above the significant "Consolidation" pattern,
surpassing the 87 level.
This breakout is supported by an increase in volume, suggesting active participation at the breakout level.
The stock is moving in a rising channel from 70 level. Recently it took support at lower band of channel and bounce back sharply, indicating a positive momentum.
The weekly "Bollinger band" generated buy signal as stock closed above the upper Bollinger Band.
The weekly strength indicator RSI is in given a crossover above its reference line generated a buy signal.
The brokerage has given a buying range between Rs 89-86. The above analysis indicates an upside of 98-103 levels (12–18 percent) with a stop loss at Rs 82. Holding period is 3 to 4 weeks.
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