Axis Bank among top 3 ideas for week: Rupak De

The holiday-shortened week, with only three days, will mark the end of the financial year 2023-24 in which Nifty and Sensex scaled new peaks and retail investors made more money than institutional investors by betting on smallcaps.

Given the end of the financial year in the last week, many investors are likely to adjust their ahead of year-end obligations. Additionally, with the monthly expiry of Futures and Options (F&O) contracts occurring during the week, we may expect a significant uptick in trading activity, says Rupak De, Senior Technical Analyst at LKP Securities.

Axis Bank, Indus Tower and PCBL are his top 3 ideas for the week. Edited excerpts from a chat:



Nifty managed to recover losses made on March 19 after showing support near 21,700-mark. Do you think the index can maintain the 22,000-plus zone this week?

Rupak De: Nifty witnessed two days of recovery following a Doji formation on the daily chart, bouncing back from the recent low of 21,710. Moreover, the Nifty has reclaimed the critical 55-day exponential moving average. However, Nifty needs to cross over 22,100 to witness a clear rally towards the all-time high of 22,525. The sentiment is likely to remain strong as long as it stays above 21,950. Therefore, we might expect Nifty to hover above 22,000 in the next week. However, if Nifty fails to sustain above 21,950-22,000, the index might enter a consolidation phase.


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This week will have only 3 trading days due to two holidays and two long weekends. Given that there would be a monthly expiry as well, do you see above-average volumes on the 3 days?

Rupak De: Typically, we observe a decrease in trading activity during holiday-shortened weeks. However, the week marks the end of the financial year, prompting traders, investors, and fund managers to adjust their portfolios ahead of year-end obligations. Additionally, with the monthly expiry of Futures and Options (F&O) contracts occurring during the week, we may expect a significant uptick in trading activity.

Unlike Nifty and Nifty Bank, the IT index failed to recover and ended the week down about 6%. Would you prefer short positions in the likes of Infosys and HCL Tech?

Rupak De: The shares of Indian IT companies came under pressure following a weak revenue guidance from the global tech giant Accenture. This led to a bearish sentiment in the Nifty IT index, which experienced a consolidation breakdown, extinguishing hopes of a recovery. Heavy selling was witnessed across stocks in the sector.

INFY has retreated to its support level of 1500 amidst negative sentiment. If it breaches this support level, it could favor short positions, potentially leading to a downward movement towards 1400. A reversal in the current downtrend may occur if the stock rises above 1530.

As for HCLTECH, shorting should be avoided as the stock closed 3% above the day’s low, indicating significant buying interest around that level.

Smallcaps, microcaps and midcaps outperform again in the week despite all the noise related to valuations and stress tests by mutual funds. Does the trend look sustainable?

Rupak De: While the headline indices Nifty and Bank Nifty have remained in a range for the last few days, the Midcap and Small Cap indices have started outperforming lately. Following the recent sell-off in the mid and small-cap stocks, investors are finding it worthwhile to take risks in this space. Consequently, buying activity has been noticeable in selective mid-cap and small-cap stocks, leading to a recovery in the indices. Going forward, this demand may persist in the short term as investors perceive value in these stocks.

What would be your top ideas for the week?

Buy AXISBANK 1031 TGT 1140 SL 1098

The stock has been finding support at the critical 200DMA on the daily chart following a sharp correction. Additionally, it has been finding support around the previous swing low on the daily chart. Over the short term, the stock might witness a recovery towards the higher end, and as long as it remains above the 200DMA, the chances of a strong recovery will persist. On the upside, it might move towards 1,140 in the short term. Support on the downside is placed at 1,000.

BUY INDUSTOWER 275 TGT 300 SL 267

The stock has experienced a swing high breakout on the daily chart. Additionally, it has sustained above the critical short-term moving average. The momentum indicator is also indicating positive momentum. On the upside, it might move towards 300 in the short term. Support on the downside is placed at 267.

BUY PCBL 262 TGT 285 SL 252



The stock has given consolidation breakout on the daily chart. The recent rise in price was backed by increased volume. The momentum indicator is also indicating positive momentum. On the upside, it might move towards 285 in the short term. Support on the downside is placed at 252.

Roy Walsh

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