Top picks of the week: Axis Direct has recommended Ajanta Pharma, Welspun Living and Krishna Institute of Medical Sciences (KIMS) as technical picks for the next three to four weeks, citing bullish chart patterns, strong volume support and positive momentum indicators.
Ajanta Pharma LimitedAxis Direct has turned bullish on Ajanta Pharma Limited, highlighting a strong technical breakout and signalling further upside potential over the next three to four weeks.
According to Axis Direct, the breakout is backed by a sharp surge in trading volumes, indicating strong market participation and conviction behind the move.
The brokerage further said the stock is trading firmly above its 20-day, 50-day, 100-day and 200-day simple moving averages (SMAs), with all key averages trending higher in line with price action, confirming a robust bullish structure.
Momentum indicators also remain supportive, with the weekly and monthly Relative Strength Index (RSI) holding above their respective reference lines, reflecting strengthening bullish momentum and reinforcing the positive outlook.
Based on the technical setup, Axis Direct expects Ajanta Pharma to move towards the 3,500–3,550 levels. The brokerage has suggested a holding period of three to four weeks.
- CMP: 3177
- Buy Range: 3120-3058
- Stop loss: 2885
- Upside: 13%-15%
According to the brokerage, WELSPUNLIV has broken out of a “Triangular” formation at the 137 level, supported by a strong bullish candle, indicating the continuation of the medium-term uptrend.
Axis Direct noted that rising volumes around the breakout zone over the past couple of weeks point to increased market participation and strengthen the credibility of the move.
The brokerage further highlighted that the stock is trading comfortably above its 20-day, 50-day, 100-day and 200-day simple moving averages (SMAs), reaffirming the prevailing bullish trend.
In addition, the daily, weekly and monthly Relative Strength Index (RSI) indicators are sustaining above the 50 mark, signalling strong and sustained momentum across multiple time frames.
- CMP: 141
- Buy Range: 137-134
- Stop loss: 127
- Upside: 12% -17%
According to the brokerage, KIMS has delivered a breakout above the downward-sloping trendline at the 745 level, supported by a strong bullish candle, indicating the beginning of a medium-term uptrend.
Axis Direct noted that the breakout has been accompanied by a notable surge in trading volumes, reflecting strong market participation and validating the strength of the move.
The brokerage also highlighted that the weekly “Bollinger Band” buy signal points to strengthening bullish momentum in the stock.
Additionally, the weekly Relative Strength Index (RSI) is holding above its reference line and trading above the 60 mark, reinforcing positive sentiment and confirming the robustness of the ongoing price action.
Based on the technical setup, Axis Direct expects KIMS to move towards the 803–825 levels. The brokerage has suggested a holding period of three to four weeks.
- CMP: 762
- Buy Range: 745-730
- Stop loss: 705
- Upside: 9%-12%
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions)
