While the idea of turning a small investment in the stock market into a huge profit is appealing, such stocks are difficult to find.
Many investors are drawn to the stock market with the hope of making quick returns, often viewing it as a fast track to financial gains.
While the idea of turning a small investment into a huge profit is appealing, such stocks are difficult to find.
Axis Securities has identified four stocks—Bajaj Auto Ltd, Tata Consultancy Services Ltd (TCS), Multi Commodity Exchange of India Ltd (MCX), and Barbeque Nation Hospitality Ltd—that they believe are poised to offer returns between 7% and 16% over the next 21 to 28 days.
According to Axis Securities, these stocks are showing strong potential based on their weekly charts. Below is a detailed look at each of these stocks and the reasons behind the expected returns:
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Bajaj Auto Ltd
- Buy range: Rs 9,860-9,664
- Stop loss: Rs 9,368
- Upside: 8-11%
Axis Securities has pointed out that Bajaj Auto has broken out above the ‘Symmetrical Triangle’ pattern at Rs 9,770 on the weekly chart. This breakout suggests that the medium-term uptrend in the stock is likely to continue. The previous resistance level at Rs 9,250 has now become a support zone, which is a common occurrence in technical analysis.
Furthermore, Bajaj Auto is currently trading above its key short and medium-term moving averages, including the 20, 50, 100, and 200-day averages. The Relative Strength Index (RSI), a popular technical indicator, has also crossed above its reference line, generating a buy signal. Given these factors, Axis Securities believes that Bajaj Auto could see its price rise to between Rs 10,550 and Rs 10,800 in the next 21 to 28 days.
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Multi Commodity Exchange of India Ltd (MCX)
- Buy range: Rs 4,550-4,460
- Stop loss: Rs 4,300
- Upside: 9-13%
MCX has confirmed a breakout above its medium-term consolidation range of Rs 4,625 to Rs 3,150 on the weekly chart. This breakout was accompanied by a strong bullish candle, indicating that the medium-term uptrend is likely to continue. The stock is also forming higher highs and higher lows, which is a positive sign of continued strength.
The stock took support at the 38% Fibonacci retracement level, which is positioned at Rs 3,118. This level has confirmed a medium-term support base for the stock. The RSI is also holding above its reference line, indicating a positive bias. Based on this analysis, Axis Securities expects the stock to rise to between Rs 4,920 and Rs 5,100 in the next few weeks.
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Tata Consultancy Services Ltd (TCS)
- Buy range: Rs 4,385-4,299
- Stop loss: Rs 4,185
- Upside: 7-9%
TCS recently broke out above the ‘Rounded Bottom’ pattern at Rs 4,233 in mid-July 2024. This breakout was accompanied by a strong bullish candle on the weekly chart, signalling a positive bias. The stock experienced a brief pullback to the breakout area but quickly rebounded, indicating that the uptrend is likely to continue.
TCS is also forming higher highs and higher lows on the weekly chart, which is a sign of strength. The RSI is holding above its reference line, suggesting that the stock is likely to move higher. Axis Securities expects TCS to reach Rs 4,656 to Rs 4,750 in the next 21 to 28 days.
Barbeque Nation Hospitality Ltd
- Buy range: Rs 620-607
- Stop loss: Rs 575
- Upside: 12-16%
Barbeque Nation has shown a breakout above its medium-term downward-sloping trendline at Rs 587 on the weekly chart. This breakout signals the beginning of an uptrend. Additionally, the stock has broken out above the ‘Inverted Head and Shoulders’ pattern at Rs 601, which is typically seen as a reversal pattern in technical analysis.
The stock also closed above its weekly upper Bollinger band, which has generated a medium-term ‘Buy’ signal. The RSI is holding above its reference line, further indicating a positive bias. Axis Securities believes that Barbeque Nation could see its price rise to between Rs 690 and Rs 713 in the next 3–4 weeks.
