Technical Breakout Stocks: How to trade ICICI Bank and SBI on Thursday

economictimes.indiatimes.com:

The S&P BSE Sensex rallied over 400 points while the Nifty50 closed with gains of over 100 points to hit a fresh closing high.

Sectorally, buying was seen in banks, IT, consumer durable, healthcare, and auto stocks while realty, power and oil & gas stocks saw some selling pressure.

Stocks that were in focus on Wednesday include names like ICICI Bank which was up 0.8% and SBI which closed flat but with a negative bias after hitting fresh record highs.

We have collated a list of two stocks that either hit a fresh 52-week high, or an 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 Kush Ghodasara (CMT, SEBI RA: INH000002137) had to say:

SBI

The stock has been performing like never before with almost 35% return in less than a month. During this rally, it has been taking continuous support at a 5-10-day average situated at 764.

But now it seems to have exhausted its fuel as momentum indicators have turned a little bearish in the overbought zone.

To support the view of a pause in the rally, on Wednesday we got a Doji which makes it cautious for new positions. Therefore, keep a strong trailing stop loss at 764 while avoiding a new position.

ICICI Bank

It has been the reason for the recent outperformance of Bank Nifty vs Nifty. The stock was trading in the range rising channel, which was breached last week and now the resistance line is acting as support for the stock