Stocks to buy this week: Zomato, CAMS, REC, Bank of India among 12 technical picks; do you own any?
₹640 on the weekly chart, supported by a strong bullish candle, indicating a positive bias. The stock rebounded to ₹695, experienced a throwback to the breakout zone, and subsequently rallied beyond the swing high of ₹695, signalling the continuation of the uptrend. It is followed by a rising channel formation since mid-April 2023, suggesting a medium-term uptrend.
The weekly strength indicator RSI is in a bullish mode and holding above its reference line, indicating positive bias. On the weekly chart, Zomato breached the consolidation zone between ₹130-113 with a strong bullish candle, signalling the continuation of a medium-term uptrend. The stock is currently trending within an upward channel formation and recently found support at the lower band, followed by a sharp rebound, indicating a positive momentum.
The stock is holding above key averages of 20, 50, 100, and 200-day simple moving averages (SMA), signalling a strong uptrend in the stock. The weekly strength indicator RSI has given a crossover above its reference line, generating a buy signal. On the weekly chart, CAMS has broken out above the bullish flag pattern at the ₹2,700 level with a bullish candle, signalling the continuation of an uptrend.
The stock experienced a throwback to the breakout zone around ₹2,680, followed by a sharp rebound, confirming the breakout from the multiple resistance. The prior resistance zone around ₹2,680, established since the beginning of 2022, is expected to function as a support zone, aligning with the principle of change in polarity in technical analysis. The weekly RSI is holding above the upward-sloping trendline, confirming the strength of the uptrend in prices.
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