Synopsis: Axis Securities has identified Bharti Airtel, Chalet Hotels, and Redington as promising investment opportunities based on strong technical analyses. Each stock exhibits favourable chart patterns, support levels, and momentum indicators, suggesting potential for upward movement in the near term.
In the face of increasing selling pressure in the Indian equity markets, domestic brokerage firm Axis Securities has identified three stocks—Bharti Airtel Ltd, Chalet Hotels Ltd, and Redington Ltd—as potential investment opportunities.
These selections are based on robust technical analyses and favourable market indicators.
Bharti Airtel Ltd: Buy Recommendation
- Target Price: Rs. 1,811– Rs. 1,875
- Stop Loss: Rs. 1,619
Axis Securities notes that Bharti Airtel has recently broken out of a symmetrical triangle pattern on its weekly chart, signalling a continuation of the medium-term uptrend.
The stock is trading above the 38.2% Fibonacci retracement level of the rally from Rs. 1,219 to Rs. 1,779, establishing a strong support base at Rs. 1,565.
The weekly Relative Strength Index (RSI) is above its reference line, indicating a positive bias.
These technical indicators suggest an upside potential to the Rs. 1,811– Rs. 1,875 range.
Chalet Hotels Ltd: Buy Recommendation
- Target Price: Rs. 747– Rs. 785
- Stop Loss: Rs. 660
Chalet Hotels has formed a Bullish Engulfing candlestick pattern on its daily chart, indicating a potential trend reversal.
The stock has established crucial support at the Rs. 670 swing low from June 2024.
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, the stock continues to make lower highs and lower lows, indicating a positive divergence—a strong sign of a potential reversal.
These factors collectively suggest an upside potential to the Rs. 747– Rs. 785 range.
Redington Ltd: Buy Recommendation
- Target Price: Rs. 255– Rs. 265
- Stop Loss: Rs. 223
Redington is trending within a rising channel and has recently found support at the lower band, rebounding toward the upper band, signalling a strong uptrend.
The stock has broken above horizontal resistance near Rs. 230, backed by a strong bullish candle and rising volumes, confirming the continuation of the uptrend.
It also 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.
These technical indicators suggest an upside potential to the Rs. 255– Rs. 265 range.
Conclusion:
Investors seeking opportunities in the current market environment may consider Bharti Airtel, Chalet Hotels, and Redington, given their positive technical indicators and growth potential.
However, it is essential to conduct thorough research and consider individual risk tolerance before making investment decisions.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
