Technical Breakout Stocks: How to trade IndiGo, Zomato and Thermax on Wednesday

Buying was seen in realty, capital goods, oil & gas, and public sector while IT, banks, and FMCG stocks saw some selling pressure

Indian market snapped a 3-day winning streak to close in the red on Tuesday. The S&P BSE Sensex fell over 360 points while the Nifty 50 managed to hold on to 22,000.

Sectorally, buying was seen in realty, capital goods, oil & gas, and the public sector while selling was seen in IT, banks, and FMCG stocks.

Stocks that were in focus include names like which rose nearly 6%, which gained nearly 5% and which closed with gains of over 4% on Tuesday.

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 Ankit Choudhary, Co-founder, Financial Independence Services (SEBI Registered Investment Advisors, Registration Number - INA100008939), had to say:

InterGlobe Aviation

InterGlobe Aviation stock was up by over 6% as brokerages are bullish on the back of news of capacity expansion and rising air travel.

The stock has given an all-time high breakout on the daily weekly and monthly charts, but at these levels risk and reward are unfavourable.

So a ‘buy on dip’ strategy can be followed with an entry around 3,300 and a stop loss can be placed below Rs 3,700.

Disclaimer – We shared it as an intraday morning call on Tuesday with our paid clients and booked good gains.

Zomato

The stock has given a good Rounding Bottom breakout on the monthly chart, but we would follow a ‘buy on dip’ approach as the stock has tripled in the last 1 year.

Fresh investments, in the long run, can be made at 140 levels with a stop loss below Rs 94.9 and a long-term target of 300. Swing traders can buy it above 180 for targets of 200 and a stop loss can be placed below Rs 168.9.

Thermax

The stock has given a breakout on the weekly chart, but RSI is showing some negative divergence.

We will follow a buy-on-dip strategy and will suggest entering this stock at its previous weekly breakout levels of 3,250 with a stop loss below 2,989 for a target of 4,500.

(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