Aurobindo Pharma, Dalmia Bharat, Precision Wires shares: Axis Securities sees up to 15% upside in 3-4 weeks

Technical anlaysts at Axis Securities expects three stocks namely Aurobindo Pharma Ltd, Dalmia Bharat Ltd and Precision Wires Ltd to deliver up to 15 per cent returns in the next 3-4 weeks. Aurobindo Pharma and Precision Wires have seen strong breakouts after a phase of consolidation, the brokerage said adding that Dalmia Bharat has seen a breakout of medium-term 'Rounded Bottom' pattern.

Dalmia Bharat, Axis Securities said, demonstrated a strong breakout from its medium-term "Rounded-Bottom" pattern at the level of Rs 2,280 on the weekly chart in the early September. The scrip retested the breakout area and rebounded sharply, suggesting the continuation of the ongoing uptrend. Axis Securities said the stock has established a medium[1]term support level at Rs 2,216, which corresponded to a 38 per cent Fibonacci retracement from the price range of Rs 1,873-2,425.

The weekly strength indicator RSI, Axis Securities said, is moving upwards. It is trading above its reference line, hinting at a positive bias. The analysis indicates an upside towards of Rs 2,600-2,700 level, Axis Securities said. It advised traders to buy the stock in the Rs 2,370-2,323 and keep a stop loss at Rs 2,220 level.

The brokerage said Aurobindo Pharma shares are establishing a pattern of higher high-low on the weekly chart and forming an upward sloping trendline. The scrip has established a medium-term support level at Rs 816, which corresponds to a 23 per cent Fibonacci retracement from Rs 581-888 price range. Axis Securities said the weekly strength indicator RSI gave a crossover above its reference line, generating a 'Buy' signal. It advised traders to buy the stock in the Rs 908-890 range, with a stop loss of Rs 844 for possible targets of Rs 1,009-1,025 levels.

In the case of Precision Wires, the stock successfully broke out of a consolidation range of Rs 117-128 and made a sizable bullish candle, which signifies the continuation of uptrend.

"The stock, currently trading within a rising channel, found support at the lower band and is now trending towards its upper band, indicating a bullish momentum. The stock is well-placed above key moving averages. The weekly strength indicator RSI is moving upwards and is above its reference line indicating positive bias," Axis Securities said.

The brokerage suggested a buy range of Rs 135-132, a stop loss of Rs 127 and targets of Rs 147-152.

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