Leading brokerage firm Axis Direct has identified three Indian stocks—Varun Beverages Ltd, Manappuram Finance Ltd, and Endurance Technologies Ltd—as strong 'buy' candidates, projecting potential double-digit gains within the next 3-4 weeks. These recommendations are rooted in robust technical chart analysis, signaling positive momentum for investors.
Varun Beverages: Breakout Signals Upside Potential
Axis Direct has issued a 'buy' call for Varun Beverages with a target price range of Rs 599-615 and a stop loss at Rs 494. The stock recently achieved a decisive breakout from a one-year downward-sloping channel on its weekly charts. This move, supported by a strong bullish candle and a significant surge in trading volumes, indicates a clear trend reversal in the medium term. Varun Beverages is currently trading above its 20-, 50-, 100-, and 200-day Simple Moving Averages (SMAs), all trending upwards, which confirms a strong bullish structure. Momentum indicators, including the weekly Relative Strength Index (RSI) holding above its reference line, further reinforce the positive outlook.
Endurance Technologies: Cup & Handle Formation Points to Growth
Endurance Technologies Ltd also received a 'buy' rating from Axis Direct, with a target price between Rs 2,969-3,010 and a stop loss set at Rs 2,525. The stock has successfully broken out of a 'Cup & Handle' formation around the Rs 2,685 level on daily charts, accompanied by increasing volumes. This technical pattern suggests a resumption of its medium-term uptrend. Endurance Technologies continues to exhibit a 'higher tops and bottom' formation and maintains positions above its key SMAs (20-, 50-, 100-, and 200-day), signaling a sustained positive bias. Supporting this, momentum indicators like the weekly RSI and daily/weekly Bollinger Band buy signals validate strengthening bullish momentum.
Manappuram Finance: Overcoming Resistance for Continued Uptrend
For Manappuram Finance, Axis Direct recommends a 'buy' with target prices ranging from Rs 361-372 and a stop loss at Rs 295. The stock has delivered a decisive breakout above a significant 'multiple resistance zone' at Rs 318 on its weekly charts. This breakout is underscored by a strong bullish candle and a notable surge in volumes, confirming strong market participation and validating the move's strength. Manappuram's daily price action remains firmly above its 20-, 50-, 100-, and 200-day SMAs, with all moving averages trending higher, indicative of a robust and sustained bullish trend. Additionally, the weekly and monthly RSI breaking above its reference line further bolsters positive sentiment and confirms the strength of the price action.
Disclaimer: This article provides stock market news 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.