Technical picks: Axis Securities recommends three stocks to buy with 14% upside

Indian stock market: Indian benchmark indices ended almost unchanged on Tuesday, rebounding from early losses as gains in IT stocks offset declines in consumer shares.

The BSE Sensex declined by 29.47 points (0.04%) to settle at 75,967.39, while the Nifty 50 index dipped 14.20 points (0.06%) to end at 22,945.30.

On Monday, the Sensex and Nifty ended their eight-session losing streak—their longest since February 2023—closing slightly higher. However, the indices are still around 13% below their record highs from September and have fallen 3.5% so far this year, pressured by two consecutive quarters of weak corporate earnings, continuous foreign outflows, sluggish domestic growth, and global trade uncertainties.

“Nifty futures reversed their downtrend and ended the session with modest gains of 30 points, breaking an eight-day losing streak. Although the market opened weak, a surge in buying—especially in financial stocks during the final hour—pushed the indices into positive territory. However, overall gains were constrained by ongoing global trade uncertainties, disappointing corporate earnings, and persistent foreign institutional investor (FII) outflows. The Bank Nifty showed a relatively better performance, rising by 127 points amid cautious sentiment. Despite the rebound, concerns persisted as the Nifty futures premium edged slightly higher, while that of the Bank Nifty narrowed from 235 to 203 points, reflecting a cautious outlook,” brokerage firm Axis Securities said in a note.

Axis Securities has recommended three stocks to buy this week with an upside potential up to 14 per cent – Bharti Airtel, Redington and Chalet Hotels.

Stocks to buy

1] Bharti Airtel: Buy at ₹1715 | Target price: ₹1700-1666 | Stop Loss: ₹1619

BHARTIARTL broke out of the ‘Symmetrical Triangle’ pattern at 1654 on the weekly chart in early February 2025, backed by a strong bullish candle, confirming the continuation of the medium-term uptrend. This week, the stock registered a higher high and higher low compared to the previous week, reinforcing the postbreakout rally. The stock is trading above the 38.2% Fibonacci retracement level of the rally from 1219 to 1779, which is positioned at 1565. This has formed a strong support base. The weekly RSI strength indicator is above its reference line, indicating a positive bias.

2] Redington: Buy at ₹242 | Target price: ₹236-231 | Stop Loss: ₹223

REDINGTON is trending within a rising channel and recently found support at the lower band, rebounding toward the upper band, signalling a strong uptrend. The stock has broken above horizontal resistance near 230, backed by a strong bullish candle and rising volumes, confirming the continuation of the uptrend. Additionally, it trades above key short and medium-term moving averages (20-,50-, 100-, and 200-day), reinforcing a positive bias and sustained upward momentum. The weekly RSI has crossed above its reference line, generating a buy signal. It also holds above an upward-sloping trendline, further strengthening the bullish outlook.

3] Chalet Hotels: Buy at ₹695 | Target price: ₹695-683 | Stop Loss: ₹660

CHALET holds crucial support at the 670 swing low, established in the first week of June 2024. It has formed a Bullish Engulfing candlestick pattern on the daily chart, signalling a potential trend reversal. Rising volume activity at this support level suggests strong market participation, reinforcing the likelihood of a bounce-back. The daily RSI has crossed above its reference line, generating a buy signal. Additionally, RSI is forming a higher high and higher low pattern. At the same time, the stock continues to make lower highs and lower lows, indicating a positive divergence—a strong sign of a potential reversal. The confluence of bullish signals suggests that buyers are regaining control, increasing the probability of a sharp recovery in the near term.

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts, consider individual risk tolerance, and conduct thorough research before making investment decisions, as market conditions can change rapidly, and individual circumstances may vary.