Technical Breakout Stocks: How to trade Tata Motors and Kalpataru Projects which hit fresh 52-week highs
The S&P BSE Sensex fell more than 170 points while the Nifty50 managed to hold on to 21,700 levels on Friday.
Sectorally, buying was seen in telecom, auto, FMCG, and utilities while selling was visible in oil & gas, energy and public sector stocks.
Stocks that were in focus include names like Tata Motors which rose more than 3% while Kalpataru Projects International Ltd closed with gains of over 7% to hit a fresh 52-week high on Friday.
We have collated a list of three 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:
Analyst: Kunal Kamble, Sr. Technical Analyst at Bonanza Portfolio Ltd
Tata Motor: Buy on Dips
Tata Motors stock recorded a breakout from an Inverse Head and Shoulder pattern on a weekly time frame indicating a bullish trend in the security.
The price has closed near the high forming a bullish candle. Prices are trading above the Fast (50) EMA and Slow (200) EMA indicating a positive trend.
Volume increased during the day which indicates that buyers are active in the stock. On the momentum front, RSI is trading in a higher range which indicates that the trend is bullish.
On the Directional front, DI+ is trading above DI- indicating a positive trend and ADX trading above DI's indicates strength in the move.
A buy-on-dips strategy can be made in Tata Motors between the range of 645-688 and a stop loss can be maintained at 490 for the upside target of 1070.
Kalpataru Projects: Hold
Kalpataru Project stock formed a Rising Wedge pattern. At the lower rising trend line the security has taken strong support and has
