Stocks to buy: Cummins India, HAL, Oil India, Suprajit Engineering can deliver up to 19% returns in short term

Axis Securities has come out with four technical stock picks namely Cummins India, Hindustan Aeronautics (HAL), Oil India and Suprajit Engineering, which it believes can deliver up to 19 per cent upside in the next 3-4 weeks. These shares have broken above their key resistance levels on the weekly chart, Axis Securities said, indicating positive bias. As per the brokerage, Oil India offers the maximum upside potential, followed by Suprajit Engineering, HAL and Cummins India.

Cummins India | Buy Range: Rs 1,590-1560 | Stop loss: Rs 1,513 | Upside: 8–11%

Cummins India has decisively broken a consolidation range of Rs 1,550-1,350 on the weekly chart, with a strong bullish candle last week. The stock held above the lower band of a rising channel and bounced back, indicating a positive bias. The Cummins India stock is now headed towards the upper band of rising channel. The stock is forming a higher high-low on the weekly chart. This formation indicates a positive uptrend. The weekly strength indicator RSI is also holding above its reference line that indicates a positive momentum. The above analysis indicates an upside of Rs 1,700-1,755 levels. The holding period is 3-4 weeks.

HAL | Buy Range: Rs 2,600-2,548 | Stop loss: Rs 2,465 | Upside: 9–12%

HAL has decisively broken the 'Falling Channel' placed at Rs 2,550. The breakout is accompanied with an increase in volume, confirming participation at the breakout level. The HAL stock is well placed above 20-, 50-, 100- and 200-day SMA, indicating positive momentum. The weekly strength indicator RSI is in bullish mode and weekly RSI's crossover above its reference line generated a 'buy' signal. The above analysis indicates the stock can test Rs 2,795-2,880 levels in the next 3 to 4 weeks.

Oil India | Buy Range: Rs 254-250 | Stop loss: Rs 233 | Upside: 15–19%

Oil India has decisively broken its 'Cup and Handle pattern ' formation on the weekly chart, indicating a positive bias. The breakout was accompanied with an increase in volume, confirming participation at the breakout level. The Oil India stock is forming a higher high-low on the weekly chart. This formation indicates a positive uptrend. The weekly strength indicator RSI is in bullish mode and the weekly RSI's crossover above its reference line generated a 'buy' signal. The above analysis indicates an upside towards Rs 290-300 level in the next 3 to 4 weeks.

Suprajit Engineering| Buy Range: Rs 356-350 | Stop loss: Rs 334 | Upside: 11–15%

Suprajit Engineering has decisively broken above a ‘Symmetrical Triangle’ pattern above the Rs 347 level on the weekly chart. The breakout is accompanied with an increase in volume, confirming participation at breakout level. The stock on a daily chart also closed above the upper Bollinger band, indicating a positive bias.

The weekly strength indicator RSI is in bullish mode and the weekly RSI's crossover above its reference line generated a 'buy' signal The above analysis indicates an upside for Suprajit Engineering towards Rs 391-405 levels. The holding period is 3 to 4 weeks.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today)

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