3 stocks to buy for 7-16% returns in next 3-4 weeks

Shares of IT major L&T Technology Services Ltd (LTTS), real estate developer Oberoi Realty and household appliances maker Blue Star Ltd may deliver up to 16 per cent returns over the next 3-4 weeks, Axis Securities said in a weekly note. The stocks have broken above their key zones and looked solid on weekly charts, the brokerage said, as it suggested a technical ‘buy’ on the three stocks.

L&T Technology Services Ltd | Buy range: Rs 5,779-5,665 | Stop loss: Rs 5,513 | Potential upside: 7–10% 
In the case of LTTS, the stock has demonstrated a breakout above the ‘Falling Channel’ at Rs 5,755 on the daily chart, indicating continuation of uptrend. Axis Securities said a diminished volume during channel formation followed by a surge at the breakout suggests increased market participation at the breakout point.

The stock, the brokerage said, is forming higher highs and higher lows while holding above the upward-sloping trendline, indicating a positive bias in the medium term.

“The daily RSI strength indicator has crossed above its reference line, generating a buy signal. The above analysis indicates an up to Rs 6,140-6,285 levels,” it said.

Oberoi Realty Ltd | Buy range: Rs 1,800-1,764 | Stop loss: Rs 1,713 | Potential upside: 8–11% 

Oberoi Realty, Axis Securities said, has broken out above the Symmetrical Triangle pattern at Rs 1,797 with a strong bullish candle on the weekly chart, suggesting the onset of a medium-term uptrend. The stock is trading above its 20-, 50-, 100-, and 200-day SMAs, indicating a strong positive bias.

“The stock found support at the 38% Fibonacci retracement level of the rally from Rs 1,360-1,953, positioned at Rs 1,721, confirming a medium-term support base. The Weekly RSI strength indicator has crossed above its reference line, generating a buy signal,” the domestic brokerage said.

Axis Securities expects the stock to hit Rs 1,920-1,985 levels in the next three to four weeks.

Blue Star Ltd | Buy range: Rs 1,860-1,824 | Stop loss: Rs 1,721 | Potential upside: 13–16% 

In the case of Blue Star, the stock has confirmed a breakout above its consolidation zone of Rs 1,800-1,500 on the weekly chart, indicating the continuation of a medium-term uptrend. The stock found support at its 38 per cent Fibonacci retracement level of the rally from Rs 902-1,898, positioned at Rs 1,514, confirming a medium-term support base.

“Blue Star closed above the weekly upper Bollinger Band, thereby generating a buy signal. The Weekly RSI strength indicator has crossed above its reference line, generating a buy signal,” Axis Securities said.

The brokerage suggested an upside target of Rs 2,085-2,130 levels over the next 3-4 weeks.