APL Apollo Tubes, Dalmia Bharat, Coforge & L&T Finance Holdings are Axis Securities top 4 technical picks

Axis Securities has come out with its technical weekly report where it has recommended four stocks namely APL Apollo Tubes, Dalmia Bharat, Coforge & L&T Finance Holdings, with target prices that suggest up to 23 per cent potential upsides. Axis Securities sees highest upside potential in L&T Finance Holdings, followed by Dalmia Bharat, APL Apollo Tubes and Coforge.

APL Apollo Tubes

APL Apollo Tubes on the weekly time frame has decisively broken out above the multiple resistance zone,  which was placed in the Rs 1,150-1,177 range. The stock is respecting the upward sloping trendline and forming a higher high-low on the weekly chart. This formation indicates a positive uptrend. The breakout is accompanied with an increase in volume, confirming participation at the breakout level. The daily and weekly strength indicator RSI is in bullish mode and

weekly RSI cross above its reference line which had generated a buy signal. The above analysis indicates an upside of Rs 1,303-1,350 levels. The holding period is 3 to 4 weeks.

L&T Finance Holdings

L&T Finance Holdings has decisively broken above the “Symmetrical triangle” pattern on the weekly chart, which was in formation since November 2021. The breakout is accompanied with rising volume, which normally dried up during the consolidation pattern formation. The weekly “Bollinger band” generated a buy signal as the 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. This indicates an upside towards Rs 100-110 levels. The holding period is 3 to 4 weeks.

Coforge

On the weekly time frame, the stock has decisively broken above its ‘”Double Bottom” pattern. The scrip formed a similar bottom at around Rs 3,200 level; neckline for the same was placed at Rs 4,060 level. The breakout is accompanied with an increase in volume confirming participation at breakout level. The stock is well placed above its 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 4,625-4,800 levels.

The holding period is 3 to 4 weeks.

Dalmia Bharat

Dalmia Bharat has decisively broken out above its multiple resistance zone on the weekly frame, placed at Rs 1,800-1,760 levels. The stock has alsoi broken above medium term downward sloping trendline, indicating a change of trend. The stock has retraced 50 per cent Fibonnacci retracement of a rally from Rs 1,212-1,794  placed at Rs 1,510. It has started bouncing back from the Rs 1,510 level forming a short term base. The daily and weekly strength indicator RSI is in bullish mode and the weekly RSI holding above its reference line is indicating a positive momentum. The stock can see upside towards Rs 2,113-2,230 levels. The holding period is 3 to 4 weeks.