4 stocks that can deliver up to 19% returns in next 3-4 weeks

Axis Securities has come out with a list of four stocks namely Alkem Laboratories Ltd, Affle (India) Ltd, AIA Engineering Ltd and Excel Industries Ltd, which it said are looking strong on weekly charts and could deliver up to 19 per cent returns over the next three to four weeks. This is what the brokerage said on the four stocks: 

Alkem Laboratories Ltd | Buy range: Rs 5,750-5,636 | Stop loss: Rs 5,300 | Upside potential: 14-17%
In the case of Alkem Laboratories Ltd, Axis Securities said the stock has broken its consolidation zone, with a strong bullish candle at Rs 5,530 on the weekly chart, signaling the continuation of its medium-term uptrend. Volume increased at the breakout zone, indicating influx of market participant. The stock took support at the 38 per cent Fibonacci retracement level of a rally from Rs 3,447-5,579 positioned at Rs 4,770, confirming a medium-term support base, Axis Securities said. 

"The weekly RSI strength indicator’s is holding above its reference line, indicating positive bias. The above analysis indicates an upside towards Rs 6,485-6,650 levels," the domestic brokerage said.

Affle (India) Ltd | Buy range: Rs 1,540-1,510 | Stop loss: Rs 1,415 | Upside potential: 14-19%
Affle India has confirmed a breakout above the medium-term ‘Rounded Bottom’ pattern at Rs 1,500 level on the weekly chart with a strong bullish candle, indicating the onset of the medium-term uptrend, Axis Securities said. Volume dried during the pattern formation, but increased at the breakout, indicating a significant influx of market participation. Affle India, Axis Securities said is positioned above short and medium-term moving averages of 20, 50, 100 and 200 days, indicating a positive bias.

The weekly RSI strength indicator’s is holding above its reference line, indicating positive bias. Axis Securities expects the stock to see upside towards Rs 1,745-1,815 levels.  The holding period is 3 to 4 weeks. 

AIA Engineering Ltd | Buy Range: Rs 4,685-4,591 | Stop loss: Rs 4,285 | Upside potential: 15–19%
AIA Engineering, Axis Securities said, demonstrated a breakout above the ‘Rounded Bottom’ at Rs 4,600 on the weekly chart, indicating the continuation of the uptrend. The stock is trending in a rising channel formation and after recently finding support at the lower band, is now advancing toward the upper band of the formation.

"It also closed above weekly upper Bollinger band generating a medium term buy signal. The Weekly RSI strength indicator’s is holding above its reference line indicating positive bias," it said. The brokerage sees upside towards Rs 5,345-5,500 level on the stock.

Excel Industries | Buy Range: Rs 1,375-1,347 | Stop loss: Rs 1,285 | Upside potential: 11–15%
Axis Securities said Excel Industries demonstrated a breakout above its multiple resistances around Rs 1,260 on the weekly chart, indicating the continuation of the medium term uptrend. The stock is forming higher highs and higher lows on the weekly chart and holding above the upward sloping trendline, indicating a positive bias.
"The stock closed above weekly upper Bollinger band generating a medium term buy signal. The weekly RSI strength indicator's crossover above its reference line has generated a buy signal. The above analysis indicates an upside towards Rs 1,513-1,565 levels," the brokerage said.