Technical Breakout Stocks: How to trade Bharat Electronics, Bajaj Auto and Aditya Birla Fashion on Wednesday

The S&P BSE Sensex fell over 100 points while the Nifty50 closed above the 22,450 level. Sectors like consumer durables, oil & gas, the public sector, and utilities, saw buying while IT, telecom and banks saw some selling pressure.

The stock market closed flat on Tuesday but with a negative bias. The S&P BSE Sensex fell over 100 points while the Nifty50 closed above the 22,450 level.

Sectorally, buying was seen in consumer durables, oil & gas, the public sector, and utilities, while IT, telecom and banks saw some selling pressure.

Stocks that were in focus on Tuesday include names like , which rose over 4% to hit a fresh record high, which closed with gains of more than 2% to hit a fresh high, and a volume spike was seen in , which closed with gains of over 11%.

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

BEL

BEL was up by 5% on the back of news of a good turnover in FY 2023-2024, along with a strong order book for two years.

The stock has given a good breakout on the daily chart with good volumes. Traders can take fresh positions in 2 ways 1) Buy above 223 with a stop loss of 215.95 for T1 (Target) 229.9 and T2- 239 as it’s forming a Pole & Flag Pattern on the hourly chart.

2) Traders can buy at previous breakout levels of 216-217 with a stop loss placed below Rs 209.8 for T1 of Rs 229 and T2 - Rs 239.

(Disclaimer – The stock was shared as an intraday buy above 216 cash levels paid call for our FIS F&O traders.)

Bajaj Auto

The stock has almost doubled in the last 8 months. So, at current levels, we will avoid any fresh trades in this stock as the Relative Strength Index (RSI) on the monthly charts is also above 80. At current levels, the risk-to-reward ratio is unfavourable.

Aditya Birla Fashion

The stock made a high of 245 on Tuesday and closed at Rs 237 on the back of news of the demerger. Levels around Rs 240-250 are a stiff resistance zone on weekly charts.

We can take fresh positions if the stock closes above 250 on a weekly basis for swing targets of 275 and short-term targets of 300. A stop loss can be placed below Rs 199.9.

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

Source: Stocks-Markets-Economic Times