Axis Direct picks three stocks for November with up to 27 percent upside potential

Brokerage firm Axis Direct has released its latest report for November, recommending purchases in Nuvama Wealth Management, BEML, and Petronet LNG. The firm sees upside potential of up to 27 percent across these selections, backed by improving technical momentum and chart patterns.

Stock Recommendations

For Nuvama Wealth Management, investors are advised to buy in the range of 1,764 to 1,800 rupees, with a target price between 2,166 and 2,349 rupees and a stop-loss set at 1,599 rupees. Axis Direct noted that Nuvama has rallied from a low of 1,097 rupees to 2,066 rupees, finding firm support near the 50 percent Fibonacci retracement level of 1,581 rupees. For BEML, the recommended buying range is 1,975 to 2,015 rupees, with a target range of 2,335 to 2,495 rupees and a stop-loss at 1,835 rupees. The brokerage stated that BEML rebounded from its 50-week and 100-week simple moving averages near 1,800 to 1,845 rupees, signalling the resumption of a medium-term uptrend from a 1,350 rupee low. For Petronet LNG, the suggested buy range is 289 to 295 rupees, with a target price of 329 to 349 rupees and a stop-loss at 275 rupees. The stock has rebounded from its rising trendline support on weekly charts and remains above major moving averages.

Market Outlook

Axis Direct also reported that the Nifty 50 closed higher in three of four weeks in October, following an eight-week losing streak that marked the longest drop since the 2020 Covid-19 crash. The brokerage noted that a sustained breakout above 23,800 could push the index toward the 24,300 to 24,800 zone, while a drop below the short-term support zone of 22,000 could drag the benchmark toward 21,500 to 21,000.

Context

Brokerage stock recommendations are based on technical indicators like moving averages and the relative strength index to predict short-term price movements. However, market conditions change constantly, and technical levels serve as risk management tools rather than guarantees of future returns.