Technical picks: SBI Cards, Indian Hotels among top bets by Axis Securities

Indian stock market: The Indian indices witnessed sharp declines in early trading on Monday, February 3, as weak global cues weighed on investor sentiment. The Sensex dropped over 700 points, while the Nifty 50 fell below the 23,250 mark.

The Sensex opened at 77,063.94, lower than its previous close of 77,505.96, before sliding further to 76,791.09. Meanwhile, the Nifty 50 began trading at 23,319.35, compared to its prior close of 23,482.15, and declined by 1% to 23,246.55.

The mid and small-cap segments experienced a steeper decline, with the BSE Midcap and Smallcap indices dropping by over 1% each.

By approximately 11:15 AM, the Sensex had fallen 418 points (0.54%) below the 77,100 mark, while the Nifty 50 was down 160 points (0.64%) at 23,337.

“Nifty started the week on a weak note but witnessed pre-Union Budget buying at a crucial support zone, closing at 23482 on Saturday with a weekly gain of 390 points. From a technical perspective, a sustained move above 23650 could trigger buying, pushing the index towards 23850–24000. Conversely, a break below 23250 may invite selling pressure, dragging Nifty towards 23000–22750. We expect Nifty to trade within a 24000–22750 range for the week with a mixed bias,” brokerage firm Axis Securities said in its report.

Brokerage firm Axis Securities has recommended four stocks to buy this week with upside potential up to 21 per cent – SBI Cards and Payment Services, Indian Hotels, Colgate Palmolive and Avanti Feeds.

Stocks to buy

SBI Cards and Payment Services: Buy at ₹820 | Stop Loss: ₹765 | Upside: 12%-15%

SBICARDS has decisively broken above the ‘Descending Triangle’ pattern at the 775 level on the weekly chart. This breakout, accompanied by a strong bullish candle, signals the onset of a medium-term uptrend. Volume activity remained subdued during the pattern formation; however, a breakout was accompanied by a surge in volume, signaling an influx of market participants. The stock closed above the weekly upper Bollinger Band, generating a buy signal and reinforcing the bullish momentum. The weekly RSI strength indicator is above its reference line, indicating a positive bias. The above analysis indicates an upside of 906-930 levels.

Indian Hotels: Buy at ₹790- ₹775 | Stop Loss: ₹745 | Upside: 10%-13%

INDHOTEL has surpassed the upper band of its falling channel at 785, marking a decisive breakout from its corrective phase. The formation of a strong bullish candle, coupled with rising volume, signals a continuation of the medium-term uptrend, reinforcing bullish momentum. The stock is trading above the 38% Fibonacci retracement level of the rally from 506 to 895, which is positioned at 744. This has formed a strong support base. The stock forms a higher high, higher low pattern and holds above its upwardsloping trendline, indicating a positive bias and strengthening the bullish outlook. The daily RSI has crossed above its reference line, generating a buy signal. The above analysis indicates an upside of 857-885 levels.

Colgate Palmolive: Buy at ₹2880- ₹2822 | Stop Loss: ₹2650 | Upside: 14%-19%

COLPAL is holding firmly at the critical support around 2600 and has rebounded sharply, signaling a potential onset of its medium-term uptrend. This strong recovery from support reflects positive sentiment and suggests that upside momentum may continue. Stock forms a small descending triangle and is broken above it, indicating a positive bias. Increased volume activity at the breakout underscores a surge in market participation, further validating the breakout. Additionally, the weekly RSI is exhibiting positive divergence, with the RSI making higher highs while prices remain stable. This divergence reinforces the potential for upside momentum and presents a compelling buying opportunity. The above analysis indicates an upside of 3250-3385 levels.

Avanti Feeds: Buy at ₹715- ₹701 | Stop Loss: ₹649 | Upside: 17%-21%

AVANTIFEEDS has been trending in a rising channel since the start of 2024. Recently, it took support at the lower band and is now heading towards the upper band of the channel. The stock also broke above the “Rounded Bottom” at 717 on the weekly chart, signaling a positive bias. Additionally, it is trading above key short and medium-term daily moving averages (20-, 50-, 100-, and 200-day), reinforcing a positive bias and indicating sustained upward momentum. The weekly RSI has crossed above its reference line and broken through its downward-sloping trendline, generating a buy signal and further confirming the bullish outlook. The above analysis indicates an upside of 826-855 levels.

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.