Technical Breakout Stocks: How to trade TCS, Colgate Palmolive and ITC on Thursday

economictimes.indiatimes.com:

The S&P BSE Sensex plunged more than 900 points while the Nifty50 failed to hold on to 22,000 towards the close of the session.

Sectorally, selling was seen in utilities, power, public sector, metals and telecom stocks.

Stocks that touched fresh record highs but pared gains towards the close on Wednesday include names like TCS which was down over 1%, ITC which rose more than 4% and Colgate-Palmolive India which was down over 1%.

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:

Here’s what Priyanka Limaye (CA, CMT) had to say:

TCS

The stock has given a breakout on a higher time frame above 3,980-4,000 after almost three years and is now sustaining above it for the last 6 weeks.

Going forward, traders can deploy a ‘buy on dips’ strategy. Traders can look at buying the stock in the range of Rs 3,980-3,760 with a medium-term stop below 3,550 and a potential target of 4,650-4,850.

Colgate-Palmolive India Ltd

This stock has been consolidating in a narrow band for almost 8-10 weeks. It has the potential to touch 3,000 levels in the short- to medium-term.

However, in the current scenario, it is advisable to take fresh entry only on dips towards 2,350-2,100.

ITC

As long as the stock is holding 400 on a daily closing basis in the short term, it can retest levels above 450. Otherwise, a dip towards 350