Axis Securities, a prominent domestic brokerage firm, has recently highlighted three top stock picks amidst the challenging landscape of the Indian equity markets. In the midst of increasing selling pressure and limited opportunities for financial gains, the firm has identified Bharti Airtel Ltd, Chalet Hotels Ltd, and Redington Ltd as promising investments based on their strong technical charts.
Expert Analysis on Bharti Airtel
Starting with Bharti Airtel, Axis Securities recommends a buy strategy with a target price range of Rs 1,811-1,875 and a stop loss at Rs 1,619. The stock exhibited a breakout from the ‘symmetrical triangle’ pattern at Rs 1,654 on the weekly chart in early February 2025, accompanied by a robust bullish candle signaling a continuation of the medium-term uptrend. Notably, the stock has maintained a higher high and higher low pattern compared to the previous week, indicating a post-breakout rally. Trading above the 38.2 per cent Fibonacci retracement level at Rs 1,565, Bharti Airtel has established a strong support base. Furthermore, the weekly Relative Strength Index (RSI) strength indicator remains above its reference line, reflecting a positive bias and suggesting further upside potential.
Insights on Chalet Hotels
Moving on to Chalet Hotels, Axis Securities advises a buy approach with a target price range of Rs 747-785 and a stop loss at Rs 660. The stock has maintained a crucial support level at the Rs 670 swing low, forming a Bullish Engulfing candlestick pattern on the daily chart, signaling a possible trend reversal. The escalating volume activity at this support level underscores strong market participation, enhancing the likelihood of a rebound. With the daily RSI crossing above its reference line and exhibiting a higher high and higher low pattern, along with a positive divergence in lower highs and lower lows, Chalet Hotels presents a compelling case for a potential reversal. These bullish signals indicate a shift in control towards buyers, increasing the probability of a significant recovery in the near future.
Analyzing Redington
Lastly, Axis Securities recommends a buy stance on Redington with a target price range of Rs 255-265 and a stop loss at Rs 223. Redington is currently trending within a rising channel, recently finding support at the lower band and rebounding towards the upper band, signaling a strong uptrend. The stock broke above a horizontal resistance level near 230, supported by a strong bullish candle and rising volumes, confirming the continuation of the upward trend. Additionally, trading above key short and medium-term moving averages (20, 50, 100, and 200-day) reinforces a positive bias and sustained upward momentum. The weekly RSI, crossing above its reference line, coupled with an upward-sloping trendline, further strengthens the bullish outlook for Redington.
In a nutshell, Axis Securities’ analysis of Bharti Airtel, Chalet Hotels, and Redington provides valuable insights into potential investment opportunities in the current market scenario. It is essential for investors to conduct thorough research and seek advice from financial experts before making any investment decisions to navigate the complex and volatile landscape of the stock market.
