PB Fintech, Maruti, JSW Energy, Cummins India: 4 stocks that look good on technical charts

Axis Securities sees 7-19 per cent potential upsides on four stocks namely PB Fintech (Policybazaar), Maruti Suzuki India Ltd, JSW Energy Ltd and Cummins India Ltd over the next 3-4 weeks based on technical readings. For Policybazaar, the domestic brokerage sees 12-17 per cent upside; for JSW Steel it expects a 14-17 per cent potential upside; a 16-19 per cent upside for Cummins India Ltd and a 7-9 per cent upside for Maruti Suzuki shares are likely, it said. 

In the case of JSW Energy, the stock has broken above its 'Downward Sloping Trendline' at Rs 505 level, indicating a positive bias.

The stock found support at the horizontal level around Rs 450, formerly a resistance, now acting as support due to the 'Principle of Polarity.'

"JSW Energy found support at Rs 475, which corresponds to the 50 per cent Fibonacci retracement level of the rally from Rs 453 to Rs 502, forming a short-term support around that level. The daily strength indicator RSI has given a crossover above its reference line, generating a buy signal. The above analysis indicates an upside of Rs 575-590 levels," it said.

In the case of PB Fintech, Axis Securities said Policybazaar demonstrated a bullish breakout above the small 'Falling Channel' pattern at Rs 1,145 on the weekly chart, signalling a positive bias. The stock, it said, is establishing a higher high-low pattern and maintaining its position above an upward sloping trendline, which is indicative of an uptrend in the medium term.

"Additionally, the stock is maintaining its position above the 20, 50, 100, and 200 Simple Moving Averages (SMA), further indicating a positive bias in its price trend. The weekly Relative Strength Index (RSI) is in bullish mode, holding above its reference line, suggesting a positive bias in the stock. The above analysis indicates an upside towards Rs 1,285-1,350 levels, it said. One can place stop loss at Rs 1,080, it said.

Maruti Suzuki, Axis Secuities said, has broken out of a five-week consolidation zone of Rs 11,730-11,300 on the weekly chart, accompanied by a robust bullish candle, indicating a continuation of the medium-term uptrend. The stock continued its upward momentum after the breakout and is expected to sustain its momentum, it said.

"Maruti Suzuki maintained support above the 23 per cent Fibonacci retracement level of the rally from Rs 9,755-11,720 at Rs 11,275, forming a medium-term base for further potential upward movement. The weekly Relative Strength Index (RSI) is in bullish mode, holding above its reference line, suggesting a positive bias in the stock. The above analysis indicates an upside towards 12,940-13,200 levels," it said while suggesting  stop loss at Rs 11,650.

Cummins India has also broken out of a five-week consolidation zone of Rs 2,835-2,650, accompanied by a robust bullish candle indicating the continuation of the medium-term uptrend.

"The stock is currently trending within a medium rising channel, having recently found support at the lower band, and is

now positioned to move towards the upper band of the channel. The stock closed above the upper Bollinger Band and generated a buy signal. The weekly strength indicator RSI, having given a crossover above its reference line, generated a buy signal," it said while suggesting a stop loss at Rs 2,660.