After a gap up opening Nifty came down near Friday's closing and bounced higher and managed to close Monday's trading session near day's high. The Nifty has managed to close above the initial resistance of 19500 and Bank Nifty has also shown some strength and has closed above 44500 levels.

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During last week, Nifty formed a bullish candle but remained constrained within the high-low range of the previous week, suggesting a lack of pronounced directional momentum.

The chart pattern suggested that if Nifty crossed and sustained above 19500 level, it would witness buying which would lead the index towards 19700-19800 levels. However, if the index breaks below 19350 level, it would witness selling, which would take the index towards 19200-19100.

For the week, analysts at Axis Securities expect Nifty to trade in the range of 19800-19100 with mixed bias.

Here are Axis Securities' weekly top 4 tech picks—

Based on the technical factors, the brokerage has suggested four stocks — Indian Railway Catering and Tourism Corporation Ltd, NTPC Ltd, The Ramco Cements Ltd, and Hindustan Copper Ltd — that investors can look to buy and hold for the next three to four weeks.

Indian Railway Catering and Tourism Corporation: On the weekly chart, IRCTC has significantly broken above the neckline of the 'Inverted Head and Shoulders' pattern, rallying past the crucial Rs 670 level. It broke above the pattern with a strong bullish candle, clearly indicating a reversal of the downtrend trend.

A substantial increase in trading volume has been observed, suggesting active participation during the breakout phase. It has formed a medium-term support and rebounded from the Rs 616 mark, representing a 50 percent Fibonacci retracement of the rally from Rs 557-675.

The weekly strength indicator RSI is holding above its reference line, indicating a positive momentum.

The brokerage has given a buying range between Rs 688-676. The above analysis indicates an upside of 736-760 levels (8–11 percent) with a stop loss at Rs 655. Holding period is 3 to 4 weeks.

NTPC: On the weekly chart, NTPC has broken above a 'Bullish Flag' pattern that had been forming after a substantial rally, with the stock surging past the Rs 222 level.

Indeed, a 'Bullish Flag' pattern signifies a brief consolidation or breather phase that occurs after a strong rally, and a breakout from this pattern typically indicates a continuation of the existing uptrend.

The stock is establishing a pattern of higher high-low on the weekly chart, implying a favorable trend. The weekly strength indicator RSI is holding above its reference line, indicating a positive momentum.

The brokerage has given a buying range between Rs 228-223. The above analysis indicates an upside of 245-255 levels (9–13 percent) with a stop loss at Rs 216. Holding period is 3 to 4 weeks.

The Ramco Cements: On the weekly chart, as of mid-May 2023, the counter has convincingly breached a medium-term 'Multiple Resistance' zone situated around the Rs 825-820 levels, signifying a shift towards a positive bias in its price trajectory.

The stock reached 955 and later retraced to 825, retesting the breakout area. In the current week, it rebounded from this support zone and broke out of a recent falling channel, indicating the continuation of uptrend.

The weekly strength indicator RSI given a crossover above its reference line generated a buy signal.

The brokerage has given a buying range between Rs 890-874. The above analysis indicates an upside of 966-1010 levels (10–15 percent) with a stop loss at Rs 840. Holding period is 3 to 4 weeks.

Hindustan Copper: On the weekly chart, Hindustan Copper has effectively surpassed a medium-term 'Multiple Resistance' zone located

at the Rs 160 level, signaling a positive bias in its price movement.

The stock has established a medium-term support level at Rs 135, which corresponds to a 38 percent Fibonacci retracement from the price range of 93 to 104.

The weekly 'Bollinger band' generated buy signal as stock closed above the upper Bollinger Band.

The weekly strength indicator RSI given a crossover above its reference line generated a buy signal.

The brokerage has given a buying range between Rs 162-158. The above analysis indicates an upside of 185-195 levels (16–22 percent) with a stop loss at Rs 148. Holding period is 3 to 4 weeks.

First Published:Sept 5, 2023 9:31 AM IST