Tube Investments, JK Lakshmi Cement, GCPL & L&T among Axis Securities' top 4 technical picks

Axis Securities has suggested four stocks namely Tube Investments, JK Lakshmi Cement, Godrej Consumer Products (GCPL) and Larsen & Toubro (L&T) as its top technical weekly picks. The brokerage is expecting these stocks to deliver 10-16 per cent returns over the next 3-4 weeks, thanks to recent price breakouts and stong volume trends.   

JK Lakshmi Cement | Buy range: Rs 830-813 | Stop loss: Rs 770 | Upside: 13-16%

JK Lakshmi Cement has decisively broken above the multiple resistance zone placed at Rs 750-730 level. The stock has broken above the horizontal resistance placed at Rs 816 level. The stock is also respecting the upward sloping trendline and forming a higher high-low on weekly chart. The formation indicates a positive uptrend. The breakout is accompanied with an increase in volume confirming participation at breakout level. The daily and weekly strength indicator RSI is in bullish mode and weekly RSI holding above its reference line which indicate positive momentum. The above analysis indicates an upside of Rs 925-950 level. The holding period is 3 to 4 weeks.

Godrej Consumer Products | Buy range: Rs 912-894 | Stop loss: Rs 850 | Upside: 12–15%

Godrej Consumer Products  has decisively broken above the “Symmetrical triangle” pattern on the weekly chart, which was in formation since September 2021. The stock is forming a higher high-low on the weekly chart. This formation indicates a positive uptrend. The stock is well placed above 20-, 50-, 100-day moving averages, indicating positive momentum.

The daily and weekly strength indicator RSI is in bullish mode and the weekly RSI has crossed above its reference line that had generated a 'buy' signal. It indicates an upside for the stock towards Rs 1,010-1,040 levels. The holding period is 3 to 4 weeks.

Tube Investments of India | Buy range: Rs 3,000-2,940 | Stop loss: Rs 2820 | Upside: 10-13%

The Tube Investments of India stock has decisively broken above its consolidation pattern on the weekly time frame. The scrip was consolidating in the Rs 2,975-2,500 range. The breakout was accompanied with an increase in volume confirming participation at breakout level. The stock is well placed above 20-, 50-, 100- and 200-day moving averages, indicating positive momentum. The weekly strength indicator RSI is holding above a reading of 50-mark and its reference line indicates positive momentum. The above analysis indicates an upside towards Rs 3,270-3,350 levels. The holding period is 3 to 4 weeks.

Larsen & Toubro | Buy range: Rs 2,130-2,087 | Stop loss: Rs 2,000 Upside: 10-11%

The Larsen & Toubro L&T scrip has decisively broken above the “cup and handle” pattern on the weekly time frame. It has also broken above its multiple resistance zone, which was placed in the Rs 2,100-2,080 range. The breakout is accompanied with an increase in volume, confirming participation at the breakout level.  The weekly Bollinger band generated a buy signal as stock closed above the upper Bollinger Band. The weekly strength indicator RSI is holding above a reading of 50 mark and its reference line indicates positive momentum. The above analysis indicates an upside towards  Rs 2,330-2,390 levels. The holding period is 3 to 4 weeks.

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