Sectorally, buying was seen in utilities, power, realty, and public sector stocks while selling was seen in IT, banks and oil & gas.
Stocks that were in focus include names like Intellect Design Arena which rose by about 20%, Ajanta Pharma gained more than 4% and NCC closed with gains of over 7% to a fresh 52-week high on Friday.
We have collated a list of three stocks that either hit a fresh 52-week high or saw a volume or a price breakout.
We spoke to a trader on how one should look at these stocks the next trading day entirely from an educational point of view:
Analyst: Viraj Vyas CMT, CFTe |Technical & Derivatives Analyst| Institutional Equity, Ashika Stock Broking Limited
Intellect Design Arena:
The stock has been a relative underperformer in the IT sector and witnessed a strong correction since 2022. However, it exhibits a promising chart pattern called the “Rounding Bottom” on the daily charts.
The “Rounding Bottom” pattern suggests a potential reversal of the downtrend and the formation of a base for an uptrend. To confirm this pattern, the stock needs to break above the critical resistance at 690-700 levels.
If it successfully breaks above this resistance zone, it could trigger a stronger rally, propelling the stock toward the 800-850 zone, offering significant upside potential for investors and traders.To manage associated risks, setting a protective stop at 650 would be prudent, insulating against adverse down moves while benefiting from the stock’s potential upward movement.
Ajanta Pharma:
The stock has undergone a prolonged consolidation phase since August 2021, during which it formed a significant support zone around 1100 levels.
This consolidation pattern resembled a “Double Bottom” reversal formation, indicating a potential trend reversal. In May 2023, the stock finally broke above the neckline of the Double Bottom pattern with a notable surge in price intensity, confirming the validity of the pattern.
After breaking out, the stock retested the neckline, further validating the breakout, and subsequently embarked on a strong impulsive move to the upside.
The price objective for the Double Bottom pattern was achieved today, but the story doesn’t end there. What adds more strength to this bullish scenario is the recent breakout above the previous swing high at 1550-1560 levels.
This breakout is a significant development, suggesting that the stock is now set to target even higher levels in the coming months, with a potential target of around 2200.
Given this positive outlook, both investors and traders are recommended to hold on to this stock, with a prudent approach to managing risk by placing a protective stop at the 1540 level.
This way, market participants can continue to participate in the stock’s upward momentum while safeguarding their positions from any potential reversals in the market.
NCC:
This particular stock has been lagging behind both the infrastructure sector and the overall market for a considerable period, confined within a range of 135 – 40 for nearly 15 years.
However, a recent development is catching investors’ attention – the stock has managed to break above the critical resistance level of 135, supported by significant trading volumes, and it is currently sustaining above this level on the Monthly Charts.
This breakout is of considerable magnitude, both in terms of time and price, which can potentially have a multiplier effect on the stock’s performance.
In the medium term, market participants are eyeing an expected target range of 240-300 levels, indicating the potential for substantial gains. On an immediate basis, the stock could target 180-190 levels.
As investors and traders alike closely monitor this stock, it is crucial to pay strict attention to the 135-level. Holding above this level is crucial for maintaining the upward momentum, as failing to do so might trigger a sharp downward move.
Therefore, exercising vigilance and being mindful of key support and resistance levels is paramount when considering investment or trading decisions related to this stock.
Disclaimer: All of the above observations are shared for educational purposes only.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)