Federal Bank, Chennai Petro, Zen top weekly stock picks by Axis Securities

Analysts at Axis Securities project up to 16% upside in Federal Bank, Zen Technologies and Chennai Petroleum owing to breakout witnessed on the weekly charts.

Federal Bank, Chennai Petroleum Corporation (CPCL) and Zen Technologies can rally up to 16 per cent, says Axis Securities in its latest weekly stock recommendations.  Analysts at Axis Securities flag key 'multi-resistance zone' and 'cup-and-handle' breakouts on the above mentioned 3 stocks for a likely positive trend ahead, with a 3-4 weekly holding period.

Here's why the brokerage firm said in its weekly report. 

Federal Bank

Buy Range: ₹304-₹298 

 

  Axis Securities believes that Federal Bank has delivered a decisive breakout above the 'Cup & Handle' pattern at ₹300-mark on the weekly chart. This breakout is supported by a strong bullish candle, signalling the sustained uptrend, analysts at the brokerage firm said.  "The breakout is accompanied by a notable surge in volumes, indicating strong market participation and validating the strength of the move," the report stated.  Further, the stock also registered an all-time high, which signals bullish sentiments. Analyst also note that the key momentum indicators remain firmly supportive, with the weekly Relative Strength Index (RSI) holding above its reference line, reflecting  strengthening bullish momentum.  Based on the above analysis, Axis Securities has projected a likely upside target of ₹326-₹334 levels for Federal Bank. The report states a buying range of ₹304-₹298, and a stop loss at ₹288. 

Chennai Petroleum Corporation

Buy Range: ₹1,145-₹1,123 

 

 

  CPCL has delivered a decisive breakout above the three-year 'multiple resistance' zone of ₹1,130-₹1,110 levels, backed by a strong bullish candle, signalling a sustained uptrend, says the Axis Securities weekly report.  The breakout is supported by a sharp surge in volumes, underscoring strong market participation and conviction behind the move, the report added.  "The stock is firmly positioned above its 20-, 50-, 100-, and 200-Day SMAs, with all key averages trending higher in alignment with price action, confirming a robust bullish structure," explains the brokerage firm.  As a trading strategy, it recommends to buying the Chennai Petroleum  stock in the ₹1,145-₹1,123 range, with a stop loss at ₹1,059 for likely upside targets in the range of ₹1,285-₹1,315 levels. This implies a potential gain of up to 16 per cent from the recommended price range.

  Zen Technologies

Last close: ₹1,780-1,746 

 

  Zen has delivered a decisive breakout above multiple resistance zones around ₹1,710-₹1,700, supported by a strong bullish candle, signalling the short and medium-term trend reversal, says the brokerage firm.  Further, it highlights that the Zen Technologies stock has been forming higher tops and bottoms, reinforcing a sustained positive bias.  "Among the key momentum oscillators, the daily, weekly and monthly RSI sustains above their respective reference lines, which validates the strength in price action and reinforces the positive outlook," explains Axis Securities.  The brokerage expects the stock to move toward ₹1,980-₹2,020 levels on the upside. It recommends a buy in the range of ₹1,780-₹1,746, with a stop loss at ₹1,655.  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.