Technical Breakout Stocks: How to trade Action Construction Equipment, BSE and Adani Ports on Tuesday

Sensex rose 363 points while the Nifty closed at 22,462. Buying was seen in realty, metal, telecom and utilities while auto and consumer durables stock saw some selling pressure.

Indian market closed in the green for the third day in a row. The S&P BSE Sensex rose 363 points while the Nifty50 hit 22,462.

Sectorally, buying was seen in realty, metal, telecom and utilities while auto and consumer durables stock saw some selling pressure.

Stocks that were in focus include names like which was up over 13% to hit a fresh record high, which was up more than 7% and which closed with gains of over 2%.

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

Adani Ports

The stock has been travelling into the upside channel since December 2023 and we have just got a crossover of a 5-day moving average over the 10-day average, suggesting a fresh buy even at a life high.

Momentum indicator RSI has turned North for almost 3 months while MACD has just crossed over to signal support to moving average crossover.

The strategy for fresh entry is to buy with a stop loss at 1,320 and a target can be placed at 1,460, which is at the resistance line.

BSE Limited

The stock has been trading in the consolidation zone of 2,012-2,593 since November but on Monday we managed to break above the resistance level with heavy volumes, which is a strong confirmation of a fresh breakout.

Even the MACD has given a crossover at the 0 line, confirming a new buy on the stock. The short-term moving averages are placed at 2,236, which is acting as a strong support level. This could be a new stop loss while the target can be placed at 3,100.

Action Construction

The stock has been trading into a channel since November 2022 and on Monday we pinched a new high but we have closed exactly at the resistance line.

Momentum indicators are in the overbought zone but are still signalling a buy.

As we have closed near the resistance line, I would suggest waiting for a day to close above the line i.e., 1,620 after which a stop loss can be at 1,450 for the target of 1,960.

(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