Here’s what Axis’s Rajesh Palviya has to say on the top stock picks for the week

Well, 17,000 has been scaled when it comes to the Nifty, and Bank Nifty is also looking strong, at least at the end of the week. Have things changed materially? Or this was just on account of the oversold situation that we had seen at the start of the week?
The beginning of this series was with a very light note like we have seen a short built up was there for both the indices. But post the RBI policy, again we have witnessed a huge short-covering action in the market and put writers were aggressive at around 16,800-16,900 and the 17,000 strike, which clearly shows that now, after a significant corrective action in the second-half of September series, buyers are again back with strong action in today’s session. After today’s close, yes, the structure is improved. We are expecting that the momentum is likely to continue towards 17,300, which is the next immediate resistance area. We are expecting that another 200-point upward momentum can be seen in the coming week for the Nifty. One can keep now a stop-loss at around 16,950 to hold their long positions. If you talk about Bank Nifty, it has also witnessed a short-covering action. Looking at the setup now, 38,400 is likely to act as a good support area and if that level holds in the coming week, possibly the next target for Bank Nifty is at around 39,200 to 39,400 on the higher side. So, overall shorts are coming out of the system, short-covering action is there in the market today, and we expect that upside momentum is likely to continue in the coming trading session. So, one should remain long with a stop loss, as mentioned, like 16,950 for Nifty and 38,400 for Bank Nifty.

What are your top picks for the week?
First stock is from the telecom space and that is Bharti Airtel. The stock is now enjoying an all-time high trajectory, and the kind of momentum we have seen in today’s session clearly shows that now the stock can move higher towards 840-850 zone. So, one can ‘buy’ Bharti Airtel. Strong short- covering was seen in today’s session. So, keep a stop loss of 770, ‘buy’ Bharti Airtel. The second stock is from the automobile space. We have seen some corrective action in the recent past in the space, but

has taken support from its 20-day moving average and now the stock is again approaching towards its recent swing high. Looking at the setup and the strength in the near term as well as on the short-term chart, we feel that Eicher Motors can show more upside momentum towards 3,750-3,800. One can ‘buy’ with a stop loss of 3,600. Another stock is Garden Reach Shipbuilders, GRAC. It has shown very strong buying action since the last three trading sessions. The stocks is forming higher high formation. It is moving above all its important short-term and near-term moving averages. Looking at the price action, we feel that the stock can rally further from the current level towards 375-380. So, one can ‘buy’ GRAC with a stop loss of 340.