Technical Breakout Stocks: How to trade Lakshmi Machine Works, ABB India and Bajaj Auto on Thursday

Sensex jumps over 500 points today. Capital goods, consumer durables, realty, and power stocks saw buying action while public sector, IT, metal and FMCG stocks saw selling pressure.

Indian market bounced back on Wednesday tracking positive cues. The S&P BSE Sensex rose over 500 points while the Nifty50 closed above 22,100 levels.

Sectorally, buying was seen in capital goods, consumer durables, realty, and power stocks while selling was seen in the public sector, IT, metal and FMCG stocks.

Stocks that were in focus include names like which was up nearly 5%, which rose over 5% to hit a fresh record high and which closed with gains of over 2% on Wednesday.

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:

Bajaj Auto

Bajaj Auto stock has been on a rising trend since the low in November 2023 but volumes are diminishing with every price rise.

Currently, the stock is taking support at a trend line and also the 5-10 day moving average is acting as strong support at 8,660.

Fresh positions are a little bit risky but existing positions should have strict stop loss placed at 8,660. New entries are suggested around the 8,000 mark, after a correction.

ABB India

The stock has been consolidating in the range of 5,580-5,880 for the last 2 weeks but this week we saw a breakout above the resistance mark.

In the last two sessions, we have seen a quick rally with volumes away from the support at 5,800, which is the 10-day average and therefore its risker to take entry at current levels.

Looking at the momentum indicators, we are approaching a top in the near term, therefore existing longs can be booked at 6,480 levels while new positions can be avoided as the risk-to-reward ratio is not favourable.

Lakshmi Machine Works

The stock has been trading in the range of 12,960-15,212 for the last 6 months. We saw a spike above the resistance level on Wednesday with heavy volumes but we couldn't close above 15,212, which means one more day of confirmation is needed.

Indicators were trending until Wednesday, therefore we also need a day confirmation over there too. We recommend buying only if the stock closes above 15,212 while existing positions should have a strict stop loss at 13,800, which is the 200-day average.

(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