Wipro, Patanjali Foods, Laurus Labs shares can deliver up to 19% return, says Axis Securities

Axis Securities has suggested four stocks namely Wipro Ltd, Patanjali Foods Ltd, Laurus Labs Ltd and Uno Minda Ltd, which it believes can deliver 11-19 per cent returns over the next 3-4 weeks, based on its technical analysis. 

In the case of Wipro, Axis Securities said the IT stock has recently demonstrated a robust breakout above the neckline of the 'Inverted Head & Shoulders' pattern at Rs 444, accompanied by a strong bullish candle. This it said, indicates a positive bias.

"Volume activity increased during the breakout, indicating an influx of market participation. The stock is holding above key averages of 20-, 50-, 100-, and 200-day Simple Moving Average (SMA), signaling a strong uptrend in the stock," the brokerage said. 

The weekly strength indicator RSI is in a bullish mode and holding above its reference line indicating positive bias, it said. Axis Securities sees the stock can rise up to Rs 502-527 in three to two weeks. It suggested traders to buy Wipro shares in the Rs 456-448 price range and suggested s stop loss of Rs 427. 

Axis Securities said Patanjali Foods Ltd has breached a multiple resistance zone around Rs 1,500 in the first week of December 2023 with a strong bullish candle, signaling the continuation of a medium-term uptrend. 

The stock, it said, underwent a retest of the breakout, rebounding and thereby confirming the validity of the breakout. It also underwent a brief consolidation within the range of Rs 1,500-1,200 before the breakout, signifying positive momentum.

"The weekly strength indicator RSI is in a bullish mode and holding above its reference line indicating positive bias," Axis Securities said while expecting the stock to test Rs 1,830-1,885. It suggested traders to buy the Patanjali stock in the Rs 1,620-1,588 and keep a stop loss at Rs 1,490.

Lauras Labs can test Rs 467-485 levels, this brokerage said while suggesting a buy range of Rs 413-405 and a stop loss of Rs 380. On the weekly chart, Laurus Labs broke above the downward-sloping trendline at Rs 392 with a robust bullish candle, signaling the commencement of an uptrend.

"Volume activity increase during the breakout indicating influx of market participation. The stock found support at the 38 per cent Fibonacci Retracement level of the rally. The Fibonacci Retracement level of a rally from Rs 278 to Rs 418, positioned at Rs 366, established a short-term support base. The stock's daily close above the upper Bollinger band signals a buy, indicating potential bullish momentum," Axis Securities said. 

The domestic brokerage said Uno Minda breached the 'multiple resistance zone' around Rs 640 on the weekly chart, in the last week of November with a robust bullish candle, signaling the continuation of a medium-term uptrend.

The stock underwent a retest of the breakout, rebounding and confirming the validity of the breakout. "The stock is establishing a Higher High Low formation and maintaining a position above the medium-term upward-sloping trendline on the weekly chart, indicating positive momentum. The weekly strength indicator RSI given a crossover above its reference line to give a buy signal," it said. 

Axis Securities suggested a buy range of Rs 665-653, a stop loss of Rs 625 and targets of Rs 727-755.

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