Technical Breakout Stocks: How to trade Metro Brands, Chalet Hotels and Eicher Motors on Thursday

Derivative data implies a muted build-up in Nifty futures, with a marginal rise in Open Interest. Option data revealed writing at the 22,000 and 22,200 strike prices, steering signs of weakness.

on Wednesday ended marginally higher as caution prevailed ahead of the US Fed meet outcome later in the night. The headline index has dipped below the critical short-term moving average, signalling weakening momentum.

Derivative data implies a muted build-up in Nifty futures, with a marginal rise in Open Interest. Option data revealed writing at the 22,000 and 22,200 strike prices, steering signs of weakness.

“On the daily charts, we can observe that Nifty has taken support around the 78.6% Fibonacci retracement level of the previous rise from 21,530 – 22,526. The momentum set up on the hourly time frame suggests exhaustion of selling pressure as there are signs of a positive divergence and is currently having a positive crossover,” said Jatin Gedia of Sharekhan.

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

Metro Brands

This stock has given a correction from its life high of Rs 1,441 and now taken support above its earlier swing high of Rs 980. It has bounced back with good volumes, breaking out from the downward-sloping trendline. In the short term, it is expected to retest its life high of Rs 1,441.

Chalet Hotels

This stock has tested its breakout candle high of Rs 686 and resumed its upward journey. It is expected to test Rs 1,000 in the short term.

Eicher Motors

The stock has successfully tested its triangle breakout and has resumed its upward journey. It is expected to touch Rs 4,600 in the short term.

(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