Technical Breakout Stocks: How to trade RVNL, Balkrishna Industries and Poly Medicure on Wednesday

Sensex snapped 3-day upmove to close in the red on Tuesday. Nifty, on the other hand, settled with gains of 27 points. Utilities, public sector, power and metal space saw buying action, while selling was seen in banks, auto, IT and FMCG stocks. Rail Vikas Nigam and Poly Medicure hit record highs.

The remained volatile and closed mixed on Tuesday tracking mixed global cues.

The S&P BSE closed below 74,000 while the closed with gains of 27 points.

Sectorally, buying was seen in utilities, public sector, power and metal space while selling was seen in banks, auto, IT and FMCG stocks.

Stocks that were in focus on Tuesday include names like which rose over 14% to hit a fresh record high, that was up 9% and which closed with gains of nearly 5% to a fresh high.

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

Rail Vikas Nigam: Long-term Buy

The stock has formed a Pole & Flag pattern on the monthly charts. It is facing some resistance around 340-350 levels. If the stock is able to sustain above 350 for at least one day, we could see an upside of 50% in less than a year.

Balkrishna Industries: Buy

The stock delivered a stellar set of numbers on Friday and was up by 10% on Tuesday as Nomura raised the target price to Rs 3,150.

The stock has given a Pole & Flag breakout after consolidation of many months but is now facing resistance around levels of 3,100-3,200. The stock has good support around 2,700-2,800 levels.

Poly Medicure: Support seen at Rs 1,600

The stock has given a breakout on the daily charts above the 1,750 level but could not sustain and close on upper levels. It has good support around the 1,600 level.

(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