Breakout Stocks: How to trade Reliance Power, Indian Bank and Max Financial Services that hit fresh 52-week high?
The Indian market failed to hold the momentum and closed in the red on Friday. The BSE Sensex fell nearly 200 points while the Nifty50 closed below 24,800 levels.
Sectorally, buying was seen in power, utilities, FMCG, and realty, while selling was visible in oil & gas, energy, IT, and metals.
Stocks that hit fresh 52-week high include names like Max Financial Services, which rose over 1%, Reliance Power was up more than 6,% and Indian Bank closed with gains of 4.7% on Monday.
We spoke to an analyst on how one should look at these stocks on the next trading day, entirely from an educational point of view:
Analyst: Rajat Kulshrestha of My Mudra Fincorp Pvt Ltd
The stock gave a strong bullish green candle breakout yesterday, with an 11% move and volumes above the 50-day moving average.
Today, it also showed a 6% upside move, with potential targets of Rs 87.60 (Target 1) and Rs 103 (Target 2), and a stop loss at Rs 48.
The stock has broken its all-time high (ATH) level and has delivered a return of 139% in the last 1 year and 58.37% in the last 6 months.
The stock has given a bullish green candle breakout with an almost 5% move, along with volumes above the 50-day moving average.
It is now poised for an upside move towards Rs 844 (Target 1), with a stop loss at Rs 535.
The stock has broken its ATH level and has delivered a return of 6% in the last 1 year and 10.51% in the last 6 months.
The stock has given a strong bullish green candle breakout of nearly 15% with volumes above the 50-day moving average on the monthly time frame.
It is now targeting an upside move towards Rs 1,967 (Target 1), with a stop loss at Rs 1,225.
The stock has broken its ATH level and has delivered a return of 62% in the last 1 year and 36% in the last 6 months.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
