According to domestic brokerage firm Axis Securities, the Nifty index exhibits a “Doji” candlestick shape on the weekly chart, signalling market participants are unsure of the route to take.
According to the chart pattern, if the Nifty crosses and maintains above the 17100 level, purchasing would occur, driving the index up to the 17250–1750 level.
The brokerage anticipates Nifty to trade with a tilt lower for the week, between 17500 and 16500. The index would experience selling if it fell below the 16800 mark, which would send it down towards the 16700–16500 range.
The Bank Nifty index exhibits a “Doji” candlestick shape on its weekly chart, which represents market participants’ uncertainty about the direction.
The brokerage anticipates Bank Nifty to trade with a negative bias in the band of 40000-38800 for the week. But, if the index drops below the level of 39250, selling would start and the index would move into the 39000–38800 range.
Top 3 picks in technology each week from Axis Securities
Three stocks—Aurobindo Pharma Ltd., Anupam Rasayan India Ltd., and Aegis Logistics Ltd.—have been recommended by the brokerage as buy-and-hold investments for the upcoming three to four weeks based on technical characteristics.
1) Aurobindo Pharma Ltd.: On the weekly chart, Aurobindo Pharma has clearly broken out above the medium-term “Falling Channel” at $485, with a powerful bullish candle indicating a favourable bias. The brokerage specified a purchasing range of $492 to $484. The research mentioned above predicts an increase of 530-545 levels with a stop loss of $465. Three to four weeks are spent in holding.
2) Anupam Rasayan India Ltd. Anupam Rasayan has clearly crossed over the “Double Bottom” on the weekly chart, and its strong bullish candle indicates a positive bias. The break out’s neckline was set at $825. The brokerage specified a purchase range of 840 to 824. The research mentioned above predicts an increase of 940–970 levels with a stop loss of $775. Three to four weeks are spent in holding.
3) Aegis Logistics Ltd. Aegis Logistics has clearly broken out over the “Multi Year Resistance” at the 385 level on the weekly chart, signalling a strong rally. The brokerage specified a purchasing range of $385 to $378. The study presented above predicts an increase of 440–455 levels with a stop loss of 352. 3 to 4 weeks are the holding period.
Disclaimer: Currency Veda does not endorse the opinions or suggestions expressed above by specific analysts or brokerage firms. Before making any financial decisions, we suggest investors to consult with licenced professionals.
