Technical Breakout Stocks: How to trade Siemens, Eicher Motors and RIL on Tuesday

The S&P BSE Sensex rose 560 points while the Nifty50 closed above 22,300 levels. Sectorally, buying was seen in capital goods, consumer durables, public sector, and healthcare stocks while selling was seen in utilities.

Indian market closed with gains of over 1% on Monday, tracking positive global cues. The S&P BSE Sensex rose 560 points while the Nifty50 closed above 22,300 levels.

Sectorally, buying was seen in capital goods, consumer durables, public sector, and healthcare stocks while selling was seen in utilities.

Stocks that were in focus include names like which rose over 3% to hit a fresh record high and which ended with gains of nearly 3% to hit a fresh record high. closed with gains of 0.6% ahead of Q4 results on Monday.

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 Priyanka Limaye, CA , CMT had to say:

Siemens
The stock has been in a dream bull run since November 2023. It has given a Flag pattern breakout in Monday's session with decent volumes which is a positive sign.

The Relative Strength Index (RSI) has entered into extremely bullish territory on the daily time frame. It needs to remain above 5850 for the target of 6600 and a stop loss can be placed below Rs 5350.

Eicher Motors
As per my analysis given on 20.03.2024, the stock has almost touched its target of 4600 (CMP: 4,485) from the then CMP on 20th March of 3,875.

Now, with daily RSI entering the extremely bullish zone, if the stock trades above 4,600 it can eventually test 4,850 and 5,200 in the short to medium term. Strong supports are placed at Rs 4,200-4,000.

Reliance Industries
This stock has given a channel breakout recently in January. The expected target is 3,200 and 3,550 in the short term and a strict stop loss can be placed below Rs 2,790.

At the moment, RSI is showing a slight negative divergence in the weekly time frame; hence, it is advisable to keep the stoploss very strict.

(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