Technical Breakouts: HUL, Axis Bank, Nestle And TCS Among Top Nifty Picks, According To SEBI RAs

With the earnings season around the corner, analysts are becoming increasingly bullish on select FMCG, banking, and IT companies. They have flagged early signs of breakout in stocks such as HUL, Nestle, Axis Bank and large cap IT stocks. 

Let’s take a look at their recommendations: 

Hindustan Unilever (HUL)

Hindustan Unilever shares rose 3% on Monday, reflecting the bullish trend across other FMCG stocks. The stock is trading above its 20-day Exponential Moving Average (EMA).

SEBI-registered analyst Sameer Pande noted that the stock was showing a positive breakout on Supertrend, supported by Relative Strength Index (RSI) around 64. He sees resistance around ₹2,550 and support around ₹2,300, and has set a target of ₹2,530 with a stop-loss at ₹2,280 on a closing basis, to be achieved by August 20.

Meanwhile, Financial Independence sees a short-term trading opportunity in HUL. They noted that the stock has seen a range breakout and a pole and flag pattern on the 15-minute chart, indicating a potential bullish movement. They shared a Buy Today, Sell Tomorrow (BTST) strategy for tomorrow only if the stock moves above Monday’s day high of ₹2,416 in the cash (spot) market.

Axis Bank

Analyst Dhruv Tuli noted that Axis Bank’s chart structure highlights price stability above key demand and retest zones, with ist 50-day EMA at ₹1,184 and the 200-day EMA at ₹1,135. 

Its RSI is forming a falling wedge, which shows that a breakout here could confirm momentum ahead. A break above ₹1,250 would signal bullish continuation, while a break below ₹1,130 would invalidate the current range setup. 

His approach combines a clean structure and confluence to identify a high-probability setup using technical indicators.

Nestle India

Financial Independence also observed that Nestlé India was underperforming lately, trading 14% below its 52-week high with low volumes. The stock was recently removed from the Sensex, but its fundamentals remain strong with a high return on equity and the approval of a 1:1 bonus issue. They advised traders to watch for a breakout above ₹2,450 as a sign of recovery; until then, sentiment remains muted.

Technology stocks

They also recommend adding IT stocks to the watchlist. They highlighted that many IT stocks are forming base patterns or showing early signs of recovery. The valuations have cooled off post correction, and with the earnings season around the corner, it may trigger sectoral moves. Financial Independence suggests monitoring large-cap stocks like TCS, Infosys, and LTI Mindtree for breakout setups, as well as some mid-cap stocks for higher beta trades.

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