CG Power, Apollo Hospitals among 3 stock ideas by Axis Direct

Analysts at Axis Direct recommend a buy on Apollo Hospitals, Amber Enterprises and CG Power in their weekly stock picks, for a potential upside up to 19 per cent.

Analysts at Axis Direct, a brand of Axis Securities, in their weekly stock picks have recommended a 'Buy' on Amber Enterprises India, Apollo Hospitals Enterprise and CG Power and Industrial Solutions.  The brokerage firm believes that these 3 stocks are favourably placed on the technical charts, and can potentially rally up to 19 per cent from last week's close in the next 3 to 4 weeks.  Here's why Axis Direct is bullish on these 3 stocks: 

Amber Enterprises

Recommended Buy Range: ₹8,700-₹8,526 

(Image: Axis Direct)

    The brokerage firm highlights that Amber Enterprises has delivered a decisive breakout on the weekly chart above last year's "multiple resistance" zone of ₹8,460-₹8,500, backed by a strong bullish candle, signalling the resumption of the prior uptrend.  "The breakout is supported by a sharp surge in volumes, underscoring strong market participation and conviction behind the move," analyst at Axis Direct said in the weekly report.  The report also states that the stock is firmly positioned above its 20-, 50-, 100-, and 200-day moving averages (DMAs), with all key averages trending higher in sync with price action, confirming a robust bullish structure.  Further, momentum indicators remain firmly supportive, with the daily and weekly Relative Strength Index (RSI) holding above their respective reference lines, reflecting strengthening bullish momentum and reinforcing the positive outlook.  As a trading strategy, Axis Direct recommends to buy Amber Enterprises stock in the range of ₹8,700-₹8,526, for a likely upside toward ₹9,400-₹9,650 levels. Analysts recommend a stop loss at ₹8,215.  On Monday, the stock traded with a loss of 3 per cent near ₹8,560 levels. The projected upside target implies a potential upside of around 12.7 per cent from current levels. 

Apollo Hospitals

Recommended Buy Range: ₹8,050-₹7,890 

(Image: Axis Direct)

 

  Apollo Hospitals has delivered a decisive breakout on the weekly chart above an "Inverse Head & Shoulder" neckline around the ₹8,000-mark, supported by a strong bullish candle, signalling the continuation of the medium-term uptrend, says Axis Direct.  Analysts also highlight that the stock registered an all-time high, reflecting strong bullish sentiment with momentum indicators firmly in support, the weekly RSI holding above its reference line, indicating strengthening bullish momentum.  "Additionally, the Bollinger Band buy signals on both the daily and weekly charts validate strengthening momentum in price action and reinforce a positive outlook," analysts explain.  Given the chart set-up, Axis Direct believes the stock can potentially surge ₹8,350-₹8,500 levels, while downside risk can be protected by a stop at ₹7,800.  Today, the stock traded marginally in red around ₹8,080 levels. The upside target implies a potential gain of 5.2 per cent from current levels. 

CP Power

Recommended Buy Range: ₹870-₹854 

(Image: Axis Direct)

  CG Power, on the daily chart, has delivered a decisive breakout above a "flag" continuation pattern at ₹850, supported by a strong bullish candle, signalling the continuation of the prevailing uptrend, says the brokerage firm in its report.  Analysts explain that the breakout is accompanied by a notable surge in volume, indicating strong market participation and validating the strength of the move.  "The stock is firmly positioned above its 20-, 50-, 100-, and 200-DMAs, with all key moving averages trending higher in tandem with the price rally, reflecting strengthening bullish momentum," says the report.  As per the chart analysis, Axis Direct projects an upside toward ₹998-₹1,030 levels, with ₹870-₹854 as the buy range, and ₹794 as the stop loss. From current levels of around ₹865, the stock can potentially rally up to 19 per cent to hi the upper end of the target zone.  Disclaimer: The views expressed by the brokerage/ analyst in this article are their own and not those of the website or its management. Business Standard advises users to check with certified experts before taking any investment decisions.