Technical Breakout Stocks: Bharat Dynamics, Finolex Cables & Cochin Shipyard hit record highs; trading tips for Monday

Sectorally, buying was seen in public sector, capital goods and telecom while selling was seen in metal, realty, IT and FMCG .

Stocks that hit a fresh record high include names like which closed with gains of over 8%, rose more than 12% and pared gains after hitting fresh record highs 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: Virat Jagad Technical Analyst

Cochin Shipyard: Buy On Dips

Cochin Shipyard made a high of Rs 2,030 on 24th March 24 and the selling pressure was seen towards Rs 1,910 levels. The stock is finding support near the 21-days EMAs which has been acting as a strong support.

Recent positive price movements indicate buyer dominance which helped the stock to break through a triple bottom formation.

Following a strong bullish candle, the stock has resumed its positive trajectory, suggesting further potential for upward movement.

The move continued towards Rs 2,400 levels and a pause can be seen in the coming period. The momentum indicator RSI has entered the overbought zone (84.6) which suggests entry on cool down would be the best way to enter in the security.

Bharat Dynamics: Avoid

After a strong consolidation Bharat Dynamicstook breakout of the range and we observed a strong bullishness in the stock which indicates that bulls are in power.

However, we observed strong selling from the higher end which results in the higher wick that is a sign of exhaustion of the momentum.

In addition to this we can consider the current candle as a shooting star candlestick pattern which is a sign of reversal so we might see some profit booking at the current level.

Additionally, the RSI is close to 90, signalling that the stock is overbought and suggesting that a price correction or a period of consolidation might follow.

Finolex Cables: Buy

has established a robust resistance zone between Rs 1,150 and Rs 1,180 on its weekly chart, witnessing active buying and driving the stock upward.

Recent positive price movements indicate buyer dominance, breaking through a triple bottom formation. Following a strong bullish candle, the stock has resumed its positive trajectory, suggesting further potential for upward movement.

The price has taken support of the Fast (21) EMA and Slow (50) EMA which will act as support in coming days. Price trading above the EMA's indicates a positive trend whereas the Slow EMA trending upward also indicates uptrend.

On the Momentum front, RSI has given a breakout of the falling trend line conforming the price action.

Collectively, these indicators signal a favourable outlook for Finolex Cables where it can continue its positivity till the Rs 1,600 level with the support of Rs 1,150 mark.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)