Weekly picks: Kotak Mahindra, Laurus Labs among top bets by Axis Securities

Stocks to buy: The Indian stock market remained under selling pressure for the fourth straight session on Monday, February 10, with the Sensex declining over 600 points and the Nifty 50 approaching 23,350 during intraday trade.

The BSE benchmark Sensex opened at 77,789.30, slightly lower than its previous close of 77,860.19, before plunging 753 points to 77,106.89. Meanwhile, the NSE Nifty 50 started at 23,543.80, compared to its last close of 23,559.95, and slipped 244 points, or 1 per cent, to 23,316.30.

“Nifty began the week on a weak note, experiencing sharp volatility on both sides before closing at 23560 on Friday, up 78 points for the week. On the weekly chart, the index formed a bullish candle with an upper shadow, indicating profit booking at the downward-sloping trendline from the all time high of 26277 formed in last week of September 2024,” said Axis Securities in a note.

Brokerage firm Axis Securities has recommended four shares to buy this week with an upside potential up to 20 per cent.

Stocks to buy

Narayana Hrudayalaya: Buy at ₹1405 | Target Price: ₹1405-1375 | Stop Loss: ₹1300

NH has decisively broken above the ‘Symmetrical Triangle’ pattern at the 1360 level on the weekly chart. This breakout, accompanied by a strong bullish candle, signals the onset of a medium-term uptrend. The stock closed above the weekly upper Bollinger Band, generating a buy signal and reinforcing the bullish momentum.

The weekly RSI strength indicator is above its reference line, indicating a positive bias. Additionally RSI also broke through its downward-sloping trendline, generating a buy signal and further confirming the bullish outlook. The above analysis indicates an upside of 1570-1635 levels.

Kotak Mahindra: Buy at ₹1929 | Target Price: ₹1920-1880 | Stop Loss: ₹1813

KOTAKBANK surpassed the upper band of its falling channel at 1900, marking a decisive breakout from its corrective phase. A breakout accompanied by a strong bullish candle on the weekly chart reinforces the potential for upside momentum, presenting a compelling buying opportunity.

The stock is trading above the 61.8% Fibonacci retracement level of the rally from 1544 to 1942, which is positioned at 1698. This has formed a strong support base. The weekly RSI strength indicator is above its reference line, indicating a positive bias. The above analysis indicates an upside of 2085-2165 levels.

Laurus Labs: Buy at ₹641 | Target Price: ₹625-610 | Stop Loss: ₹570

LAURUSLABS broke above the “Multiple Resistance” zone place around 620 with a strong bullish candle indicating a continuation of the uptrend. Increased volume activity at the breakout underscores a surge in market participation, further validating the breakout. The stock forms a higher high, higher low pattern and holds above its upward-sloping trendline, indicating a positive bias and strengthening the bullish outlook.

Additionally, it is trading above key short and medium-term daily moving averages (20-, 50-, 100-, and 200-day), reinforcing a positive bias and indicating sustained upward momentum. The weekly RSI has crossed above its reference line, generating a buy signal. The above analysis indicates an upside of 713-735 levels.

Cholamandalam Investment and Finance Company: Buy at ₹1375 | Target Price: ₹1355-1329 | Stop Loss: ₹1239

CHOLAFIN has been trending in a rising channel since the start of 2023. Recently, it took support at the lower band and is now heading towards the upper band of the channel. The stock also broke above the “consolidation” zone between 1360-1180 on the weekly chart, signaling a positive bias.

The weekly RSI has crossed above its reference line, generating a buy signal. Additionally, the weekly RSI is exhibiting positive divergence, with the RSI making higher highs while prices remain stable. This signals strengthening momentum and further reinforces the potential for an upside move, presenting a compelling buying opportunity The above analysis indicates an upside of 1548-1613 levels.

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 before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.