Stock bets: Axis Securities sees upto 21% upside in ATGL, Exide; here's why

Analysts at Axis Securities have identified Adani Total Gas, Exide Industries and AIA Engineering as 3 stocks with a decisive breakout on the weekly charts.

Axis Securities in its weekly outlook and stock picks, has recommended a 'Buy' rating on Adani Total Gas, Exide Industries and AIA Engineering.  Analysts at the brokerage firm expect up to 21 per cent upside in these 3 stocks, and have recommended a holding period of up to 3-4 weeks.  On Monday, thus far, these stocks displayed a mixed trend amid subdued market activity. Adani Total Gas (ATGL) was down 4 per cent. On the other hand, Exide Industries advanced 1 per cent, and AIA Engineering share price rose 0.6 per cent as of noon deals.  Here's a detailed technical outlook on these 3 stocks by Axis Securities. 

Adani Total Gas

Current Market Price: ₹742 

 

 

  Axis Securities in its report highlights that ATGL delivered a decisive breakout above the four-year 'down-sloping trendline' at ₹677 on the weekly chart, supported by a strong bullish candle, signalling a major trend reversal.  "The breakout is accompanied by a notable surge in volumes, indicating strong market participation and validating the strength of the move," said the brokerage firm.  Furthemore, it noted, that the stock remains well positioned above the 20-, 50-, 100-, and 200-Day Moving Averages (DMAs). All key moving averages are trending higher alongside prices, indicating a strong and sustained bullish trend.  Among the key momentum oscillators, analysts at Axis Securities said the daily, weekly and monthly RSI breakout above its reference line further reinforces positive sentiment and confirms the robustness of the price action.  Based on the above technical analysis, Axis Securities has recommended a buy on ATGL in the range of ₹750-₹735, with a stop loss at ₹695. On the upside, the brokerage firm expects the stock to rally toward ₹860-₹900 levels. This implies an upside potential of 21.3 per cent from current levels.  Check - TOP GAINERS NSE | TOP LOSERS NSE 

Exide Industries

Current Market Price: ₹390 

 

  On the weekly chart, Exide has delivered a decisive breakout from the past couple of years' 'downward-sloping trendline' resistance at ₹367, supported by rising volumes, signalling the trend reversal of the medium-term uptrend, said Axis Securities in its weekly report.  The brokerage highlighted that the stock continues to form a higher tops and bottom formation on the daily and weekly time frame and is holding firmly above its 20-, 50-, 100-, and 200-DMAs, reconfirming a sustained positive bias.  It recommended a Buy in the range of ₹380-₹372, with a stop loss at ₹355 for a likely upside target around ₹418-₹430 levels. 

AIA Engineering

Current Market Price: ₹4,525 

 

  AIA Engineering has delivered a decisive breakout from a 5-month 'multiple resistance zone' of ₹4,220 levels, backed by a strong bullish candle, signalling the resumption of the prior uptrend on the medium-term time frame, said the brokerage firm.  "The breakout is supported by a sharp surge in volumes, underscoring strong market participation and conviction behind the move," it explained.  Axis Securities believes the stock confirms a robust bullish structure, and accordingly projects an upside target of ₹4,825-₹4,920 levels; while keeping a stop loss placed at ₹4,120.  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.