Axis Securities suggests buying these 4 stocks this week

Pranati Deva
Updated: 31 May 2022, 07:31 AM IST
TL;DR.

Indian markets ended higher for the second consecutive week ended May 27 amid volatility. For the week, BSE Sensex rose 558.27 points (1.02 percent) to close at 54,884.66 while the Nifty50 gained 86.35 points (0.53 percent) to end at 16,352.5 levels. According to a report by Axis Securities, on the weekly chart, the index has formed a Bullish candle with a long lower shadow indicating buying at lower levels. For the current week, it expects Nifty to trade in the range of 16800-15900 with a positive bias. Ket's take a look at the top stocks it recommends for the week.

TVS Motor Company: According to the brokerage, on the daily chart, the stock has formed an “inverse head and shoulder” indicating a short-term trend reversal. This breakout is accompanied with huge volumes indicating increased participation, it added. The stock is well placed above its 20, 50, 100 and 200 SMA which reconfirmed the bullish trend, noted Axis. The daily and weekly strength indicator RSI is in bullish mode along with positive crossover which supports rising strength in the near term. It said that the above analysis indicates an upside of 765-790 levels and suggests a holding period of 3 to 4 weeks.

HDFC Life Insurance: Axis said that on the daily chart, the stock has confirmed higher tops and bottoms indicating a shift of trend. It added that the stock is also well placed above 20, 100 day SMA which supports upside momentum. Also, rising volumes on a rally imply increased participation on a rally and the daily and weekly strength indicator RSI signals positive crossover indicating rising strength, it noted The above analysis indicates an upside of 635-655 levels, it said, suggesting a holding period of 3-4 weeks.

Voltamp Transformers: On the weekly chart, the stock has confirmed a “down-sloping channel” formation breakout indicating resumption of the earlier uptrend, said Axis. It added that the stock is well placed above its 20, 27 May,202250, 100 and 200 day SMA which reconfirms the bullish trend, also, the daily and weekly Bollinger band buy signal indicates increased momentum. The above analysis indicates an upside of 2290-2380 levels, it noted.

HDFC Bank: On the weekly chart, the stock has rebounded very sharply from its past one-year multiple support zone of 1300- 1280 levels indicating a strong come of bulls, it noted, adding that this buying was accompanied with rising volumes indicating increased participation near the support zone. The stock is sustaining above 20 day SMA which reconfirms bullish sentiments, it further said. It noted that the above analysis indicates an upside of 1460-1510 levels and a Holding period of 3 to 4 weeks.

First Published: 31 May 2022, 07:31 AM IST