CreditAccess, FACT, Rico Auto among Axis Securities' top picks that can rally up to 28% in a month

Domestic brokerage firm Axis Securities has picked up three stocks, namely- CreditAccess Grameen, Fertilizers and Chemicals Travancore (FACT) and Rico Auto Industries- in its weekly report. The brokerage believes that the technical patterns and parameters for these stocks are sound and they are poised for a strong upside of up to 28 per cent in the next one month. Here's what Axis Securities said about these stocks:

CreditAccess Grameen | Buy | Target Price: Rs 1,540-1,590 | Stop Loss: Rs 1,235 | Upside: 15-19%

On the weekly chart, CreditAccess has decisively broken out above the significant 'rounded bottom' pattern, surpassing the Rs 1,160 level. This breakout is supported by an increase in volume, suggesting active participation at the breakout level. The stock initially moved towards the level of Rs 1,280, where it experienced a throwback. However, it subsequently exhibited a strong bounce back, indicating a retest of the breakout area. The weekly 'bollinger band' generated buy signal as stock closed above the upper Bollinger Band. The weekly strength indicator RSI is holding above its reference line indicates positive momentum. The above analysis indicates an upside of Rs 1,540-1,590 levels.

Fertilizers and Chemicals Travancore | Buy | Target Price: Rs 455-475 | Stop Loss: Rs 372 | Upside: 13-18%

On the weekly chart, FACT has convincingly broken out above the notable 'cup and handle' pattern, surpassing the Rs 370 level, indicating a positive bias. During the consolidation period, the trading volume exhibited a noticeable decline. At the point of breakout, there was a significant surge in volume, suggesting a renewed influx of market participants. The weekly strength indicator RSI is in bullish mode and RSI crossover above its reference line generated a buy signal. The above analysis indicates an upside of Rs 455-475 levels.

Rico Auto Industries | Buy | Target Price: Rs 116-125 | Stop Loss: Rs 89 | Upside: 18-28%

Rico Auto, on the weekly chart, has successfully breached the prominent 'cup and handle' pattern, surpassing the key level of 95, thus indicating a favorable bias. The stock has decisively surpassed key daily moving averages of 20, 50, 100, and 200, signaling a positive bias. The stock is exhibiting a higher high-low formation on the weekly chart, which suggests the presence of positive momentum. The weekly strength indicator RSI is holding above its reference line indicates positive momentum. The above analysis indicates an upside of Rs 116-125 levels.

 

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today)

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