Shares to buy this week: Nifty has produced a bearish candle with a lower shadow on the weekly chart, signalling support at lower levels. According to domestic brokerage and research firm Axis Securities, the chart pattern implies that if the index crosses and maintains above 17200 level, it would see purchasing, which will push the index towards 17350-17500 levels. The brokerage expects Nifty to trade in the range of 17500-16700 with a negative bias. However, if the index breaks below 17000 level it would witness selling which would take the index towards 16850- 16700, it said.
According to Axis Securities, the Bank Nifty index has formed a bearish candle on its weekly chart, with a lower high-low than the previous week and a closure below its low, signalling weakness at the current levels.
The brokerage anticipates Bank Nifty to trade with a negative bias in the band of 40200-39000 for the week. The index would experience selling if it fell below the 39400 mark, which would push it towards the 39200–39000 range.
Axis Securities’ weekly 3 stock picks:
The firm has recommended three equities for buyers to consider purchasing and holding for the ensuing three to four weeks: DLF, APL Apollo, and NCC.
1) DLF Ltd – DLF on the weekly chart has decisively broken out above the “Consolidation zone ” between 370-342 levels with strong bullish candle indicating a positive bias. The brokerage has given a buying range between ₹370-364. The above analysis indicates an upside of 400-413 levels with stop loss at ₹350. Holding period is 3 to 4 weeks.
2) APL Apollo Tubes Ltd – APL Apollo on the weekly chart has decisively broken out above the “Consolidation zone” between 1200- 1000 levels in mid of February 2023. It retested the breakout area and is expected to continue a uptrend. The brokerage has given a buying range between ₹1250-1226. The above analysis indicates an upside of 1390-1440 levels with stop loss at ₹1160. Holding period is 3 to 4 weeks.
3) NCC Ltd – NCC on the weekly chart has decisively broken out above the “Multi Year Resistance” placed at 100 level indicating a strong uptrend. The brokerage has given a buying range between ₹100-97. The above analysis indicates an upside of 115 -120 levels with stop loss at ₹90. Holding period is 3 to 4 weeks.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.