Technical Breakout Stocks: How to trade JK Paper, Endurance Technologies and KEC International on Tuesday?

Indian markets closed higher with S&P BSE Sensex rising over 180 points and Nifty50 closing above 23,400 levels. Buying was observed in auto, telecom, consumer durable, and capital goods stocks. Stocks like JK Paper, Endurance Technologies, and KEC International showed significant movements, with JK Paper hitting a record high and KEC International breaking out of a rising parallel channel.

Indian markets closed with gains for the third straight session in a row on Friday. The S&P BSE rose more than 180 points while the Nifty50 closed above 23,400 levels.

Sectorally, buying was seen in , , consumer durable, and stocks while selling was seen in IT stocks.

Stocks that were in focus include names like which rose nearly 10% to hit a fresh record high, closed with gains of nearly 6% while rose more than 7% to hit a fresh high of Friday.

We have collated a list of three 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 Bonanza Portfolio Ltd

JK Paper Ltd: Buy

JK Paper Ltd has established a strong resistance zone between 440 and 450 on its daily chart, witnessing active buying and driving the stock upward.

The recent positive price movements indicate buyer dominance, breaking through a rounding bottom formation. Following a throwback, the stock has resumed its positive trajectory, suggesting further potential for upward movement.

Additionally, trading above key moving averages supports the notion of a bullish trend. The DMI+ surpassing DMI- affirms positive momentum, while the ADX, positioned above DMI-, underscores the robust underlying strength in the ongoing upward trend.

Collectively, these indicators signal a favorable outlook for JK Paper Ltd. where it can continue its positivity till 570 level with the support of 450 mark.

Endurance Technologies Ltd: Avoid

After a strong consolidation, Endurance Technologies Ltd took 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 which is a sign of exhaustion of the momentum.

In addition to this, we can consider today's 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 85, signalling that the stock is overbought and suggesting that a price correction or a period of consolidation might follow.

KEC International Ltd: Buy

KEC International Ltd gave a breakout of raising parallel channel on a daily basis indicating an uptrend with volume supporting the price action, witnessing active buying and driving the stock upward.

Recent positive price movements indicate buyer dominance, breaking through a double 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 is indicating 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 KEC International Ltd where it can continue its positivity till 1130 level with the support of 838 mark.

(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