Breakout Stocks: How should one trade Welspun Corp, PFC and JB Chemicals on Friday
Sectorally, buying was seen in realty, auto, healthcare, and utilities while FMCG, oil & gas, IT, and consumer durable stocks saw some selling pressure.
Stocks that were in focus include names like Welspun Corp which was up more than 5%, Power Finance Corporation which gained more than 5% to hit a fresh high and JB Chemicals which rose nearly 3% on Thursday.
We have collated a list of three stocks that either hit a fresh 52-week high, or all-time high or saw a volume or a price breakout.
We spoke to an analyst on how one should look at these stocks the next trading day entirely from an educational point of view:
Here’s what analyst Kumar Saurabh, Director at Technofunda Ventures Private Limited, has to say
Welspun Corp
Welspun has come up with a great set of Q2 numbers and stock has been in good momentum after forming base around Rs 160-180 levels for multiple months.
However, with Thursday’s price action despite creating a new high, one can observe that suppliers dominated buyers at the end of the day highlighted through a long wick at the top with huge volumes.
One needs to maintain caution when looking at this. However, the stock has crossed the Rs 458 resistance level and is currently trading at Rs 480.
One may try to buy near the Rs 458 level if it acts as support with minimal risk.
PFC
Both REC and PFC have been in great momentum driven by infrastructure, the power sector, and green energy themes, supported by good results. The stock has broken the Rs 256 resistance level.
We suggest traders build a position and keep the Rs 253 level as the stop loss and ensure not to have more than 4-5% stoploss from buy levels.
JB Chemicals
Though the company has come up with good Q2 results with operating margin
