Technical Breakout Stocks: How to trade Tejas Networks, BASF India and Varroc Engineering on Wednesday
Sectorally, buying was seen in capital goods, oil & gas, and telecom while selling was seen in metal, healthcare, banks and FMCG stocks.
Stocks that were in focus on Tuesday include names like Tejas Networks which rose over 6% to hit a fresh record high, BASF India rose more than 2% and Varroc Engineering closed with gains of 6% to hit a fresh high.
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 analyst Kush Ghodasara (CMT, SEBI RA: INH000002137) had to say:
Tejas Network: Buy | Target Rs 1,525 | Stop Loss Rs 1,235
The stock has been consolidating in the range of 1,020-1,230 for almost a month. But we saw a breakout from the range two days ago and now we got confirmation after a third close.
Momentum indicators are trending in the north direction with internal crossover and therefore we can deploy fresh money in the short term for a target of Rs 1,525 and a stop loss can be placed below Rs 1,235.
BASF India: Buy| Target Rs 5,100| Stop Loss Rs 4,347
The stock has been trending down for May, but we saw a Flag pattern breakout outside channel at Rs 4,350 on Monday.
The stock has also managed to close above the short-term moving averages for the time being, suggesting a strong short covering for the next few sessions.
Indicators have also given bullish crossover, suggesting a buy for
