Technical Breakout Stocks: Data Patterns and Finolex Industries could give 11-18% return in short term

Sectorally, buying was seen in the public sector, metal, healthcare, and capital goods indices, while selling was seen in the IT and telecom space.

Stocks that were in focus include names like , which rose over 12% to hit a fresh record high, Data Patterns, which closed with gains of more than 6%, and , which gained over 7% to hit a fresh high 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:

Analyst: Ankit Choudhary Co-Founder, Financial Independence Services, SEBI Registered Investment Advisors, Registration Number - INA100008939.

Data Patterns: Buy | LTP: Rs 3,063 | Target: Rs 3,400| Upside: 11%

The stock has given a Cup & Handle breakout on the daily charts and can be bought at current levels for targets of Rs 3,400. A stop loss can be placed below Rs 2,639.

The stock has a Relative Strength Index (RSI) above 60 on the Daily/Monthly and weekly time frame -- so it can be a high probability trade.

ETMarkets.com

Finolex Industries: Buy | LTP: Rs 274 | Target: Rs 325 | Upside: 18%

The stock has given a Cup & Handle breakout on the monthly charts and can be bought at above Rs 275 by aggressive traders for a target of Rs 325, and a stop loss can be placed below Rs 229.

Safe traders can follow a ‘buy on dips’ strategy and buy around 250-255 with the same stop loss and a similar target of Rs 325.

ETMarkets.com

Aegis Logistics: Avoid fresh position

In our previous article on 16th April, we had mentioned a ‘buy on dips’ strategy for Aegis for a target of Rs 600 which was met today (Recommended buy levels were 450-455 but the stock bounced from 490).

At the current levels, the risk-reward ratio is unfavorable so we would avoid fresh positions.

ETMarkets.com

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