Technical Breakout Stocks: How to trade Usha Martin, M&M and Trent that hit record highs
The S&P BSE Sensex fell nearly 200 points on Tuesday while the Nifty50 closed in the red after hitting a record high of 22,783. Sectorally, buying was seen in power, realty, and auto while energy, oil & gas, healthcare, and IT stocks saw some selling pressure.
The Nifty50 pared gains after hitting fresh record highs on Tuesday in intraday trade. The S&P BSE fell nearly 200 points while the Nifty50 closed in the red after hitting a record high of 22,783.Sectorally, buying was seen in power, realty, and auto while energy, oil & gas, healthcare, and saw some selling pressure.
Stocks that were in focus include names like Usha Martin which rose over 5%, M&M which gained over 4% to hit a fresh record high and Trent which closed with gains of more than 1% after hitting a record high on Tuesday.
The Indian stock market was shut on Wednesday on account of Maharashtra Day.
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 Ankit Choudhary (co-founder, Financial Independence Services, SEBI Registered Investment Advisors, Registration Number - INA100008939) has to say:
Trent
It posted a good set of numbers for Q4 along with positive growth commentary by the management, so the stock made a high of 4,760, but it failed to sustain the momentum.The stock has formed a Gravestone Doji on the daily chart on Tuesday and can be a good short candidate on Thursday below 4,380 for a target of 4,300 and 4,200 with a tight stop loss of 4,551.
If the stock makes an Evening Stock pattern on Thursday closing, traders can also hold shorts for targets of 4,000 for this week.
(Disclaimer: We gave an intraday buy call on Trent today which gave around 3% gains to our FIS Family Members.)
ETMarkets.comM&M
M&M is forming a Pole & Flag pattern on the hourly chart with good volumes and RSI is above 60. Fresh entry can be taken above 2,170 with a stop loss of 2,129 for a target of 2,222 and 2,300 this month.ETMarkets.comUsha Martin
The stock has given a good breakout on the monthly, weekly, and daily charts on Tuesday after consolidating for the past 8 months.Fresh positions can be taken at the current price of 377 with a stop loss of Rs 249 for targets of 500 and 600 in the next 3-4 months.
ETMarkets.com(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
Source: Stocks-Markets-Economic Times
