4 stocks to buy for up to 17% potential upsides in 3-4 weeks

Mahindra & Mahindra Ltd (M&M), Larsen & Toubro Ltd (L&T), Havells India Ltd and Sobha Ltd are four stocks that can deliver up to 17 per cent returns over the next three-four weeks. These four stocks have broken out of their consolidation zones and are sending 'Buy' signals on technical charts, Axis Securities said in a weekly note. 

Mahindra & Mahindra | Buy range: Rs 2,920-2,860 | Stop loss: Rs 2,732 | Upside: 11–13%
Mahindra & Mahindra, Axis Securities said, has exhibited a breakout above the 'Falling Channel' at Rs 2,850 on the weekly chart, accompanied by a strong bullish candle. This, it said, suggests a potential continuation of the uptrend. The volume activity on the M&M counter got increased at the breakout, indicating an influx of participation at breakout.

The M&M stock found support at the 38 per cent Fibonacci retracement level of the rally from Rs 1,450-3,013, positioned at Rs 2,650, confirming a medium-term support base, Axis Securities said.

"The weekly RSI strength indicator has crossed above its reference line, generating a buy signal. The above analysis indicates an upside of Rs 3,205-3,255 levels. The holding period is 3 to 4 weeks," Axis Securities said.

Havells India | Buy range: Rs 2,035-1,995 | Stop loss: Rs 1,965 | Upside: 5–8%
Axis Securities said Havells India has confirmed a breakout above the "Rounded Bottom" pattern at Rs 1,985 level on the weekly chart, signalling the continuation of a medium-term uptrend. Havells India settled above its weekly upper Bollinger Band, generating a buy signal. In addition, the weekly RSI strength indicator has crossed above its reference line, generating a buy signal.

"The weekly RSI has broken above the downward-sloping trendline, further confirming the strength in prices," Axis Securities said while expecting the Havells India stock to test Rs 2,115-2,185 levels soon.

Sobha | Buy range: Rs 1,975-1,935 | Stop loss: Rs 1,825 | Upside: 13–17%
Sobha shares currently trending within a rising channel formation, indicating a medium-term uptrend in the stock. The stock recently found support at the lower band of the rising channel and is now moving towards the upper band. Sobha has established a support at the lower band, consolidating between Rs 1,830 and Rs 1,655 level in the past six weeks. 

"It recently broke above this consolidation range, signalling a potential move towards the upper band of the rising channel. The weekly RSI strength indicator has crossed above its reference line, generating a buy signal. The above analysis indicates an upside towards Rs 2,215-2,285 levels," it said.

Larsen & Toubro | Buy range: Rs 3,785-3,711 | Stop loss: Rs 3,613 | Upside: 7–9%
L&T has broken out above the 'Symmetrical Triangle' pattern at Rs 3,775 with a strong bullish candle on the weekly chart, signalling the onset of a medium-term uptrend. Axis Securities said the stock is trading above its 20-, 50-,100-, and 200-day SMAs, indicating a strong positive bias.

Since the end of June 2022, the L&T stock has been forming higher highs and higher lows while holding above the upward-sloping trendline, indicating a positive bias in the medium term.

"The weekly RSI strength indicator has crossed above its reference line, generating a buy signal. The above analysis indicates an upside towards Rs 4,020-4,085 levels," Axis Securities said.