Technical Breakout Stocks: How to trade Raymond, M&M and Tejas Networks on Tuesday

Stocks that were in focus include names like which was up more than 3% to hit a fresh 52-week high, M&M which pared gains after hitting fresh high and that closed flat but with a negative bias.

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 Pravesh Gour (Senior Technical Analyst, Swastika Investmart) had to say:

Raymond
On the longer time frame, the counter has given a breakout from a Cup & Handle formation and has shown strong momentum thereafter. It is trading above all the moving averages with high volume supporting the strength.

Talking about the technical levels, the first resistance zone will be around 2,700, and the next target would be around the 3,000 level, which is a psychological resistance.

On the downside, the first support will be at the 2,300 level. Any slip below this would open the door towards the next support zone of 2,100, where the 50-DMA is placed.

M&M
The counter is in a classical uptrend, as it has higher highs and higher lows. On the daily chart, it also saw a breakout of a Flag formation with strong volume.

The structure of the counter is very bullish, as it trades above all important moving averages. It has broken a neckline at around Rs 2,550–2,600 levels on the daily chart.

The momentum indicators, RSI (relative strength index) and MACD (moving average convergence divergence), are in a negative position.

On the upside, Rs 3,000 is the important psychological resistance level, above which we can expect the 3,200+ levels in the near term, while on the downside, Rs 2,550 is the support level.

Tejas Networks
The counter is coming out of a long consolidation with strong volume. The overall structure is very bullish as it trades above its all-important moving averages.

The pattern suggests an immediate target of Rs 1,400, while it has the potential to move further upside till 1,500 levels. On the downside, Rs 1,130 will act as an immediate support level.

MACD (Moving average convergence divergence) supports the current strength whereas momentum indicator RSI (relative strength index) is also positively poised.

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