Federal Bank, Neogen, Caplin Point: 3 stock picks by Axis Securities with up to 19% potential upside

Amid the volatility in the broader markets, domestic brokerage firm Axis Securities has suggested three stocks including Caplin Point Laboratories Ltd, Federal Bank Ltd and Neogen Chemicals Ltd to buy in the jittered market sentiments. The brokerage has picked these stocks on the based of sound technical parameters with up to 19 per cent upside potential in the next 3-4 weeks. Here's what Axis Securities has said on these stocks in its recent report:

Caplin Point Laboratories | Buy | Target Price: Rs 2,092-2,155 | Stop Loss: Rs 1,903

Caplin Point  has achieved a decisive breakout above the Rs 1,912 level on the weekly chart, surpassing the 'falling channel' pattern and indicating potential for a sustained medium-term uptrend. The stock found support at the 38 per cent Fibonacci retracement level of the rally from Rs 1,225-2,159, positioned at Rs 1,802, confirming a medium-term support base. It is forming a higher high and higher low pattern, holding above an upward sloping trendline, which indicates a positive bias. It closed above the 12-week simple moving average, indicating a positive bias. The above analysis indicates an upside of Rs 2,092-2,155 levels.

Federal Bank | Buy | Target Price: Rs 214-222 | Stop Loss: Rs 190

Federal Bank is trending within a medium-term rising channel on the weekly chart, recently finding support at the lower band and now advancing toward the upper band of the channel. It has broken above a small descending triangle pattern at the Rs 197 level within its rising channel, indicating a continuation of the medium-term uptrend. Volume activity declined during the pattern formation; however, it increased significantly at the breakout, indicating a surge of market participants entering at that point. The weekly RSI strength indicator crossed above its reference line, generating a buy signal. The above analysis indicates an upside of Rs 214-222 levels.

Neogen Chemicals | Buy | Target Price: Rs 2,442-2,513 | Stop Loss: Rs 1,935

Neogen has decisively broken out of a 'bullish flag' pattern at the Rs 2,093 level on the weekly chart, suggesting a potential continuation of its medium-term uptrend. It experienced a throwback to the previous breakout level around Rs 1,850 and rebounded sharply, indicating a continuation of the post-breakout uptrend. The previous resistance at Rs 1,850 is acting as support, reflecting the principle of change in polarity. The weekly RSI strength indicator crossed above its reference line, generating a buy signal. The above analysis indicates an upside of Rs 2,442-2,513 levels.