Breakout Stocks: How are South Indian Bank, Gabriel India and BF utilities looking on charts for Monday’s trade?
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The S&P BSE Sensex fell more than 200 points while the Nifty50 closed below 19400 levels.
Sectorally, buying was seen in power, utilities, FMCG and some infra stocks while selling was visible in IT, metals, public sector and telecom stocks.
Stocks that were in focus include names like South Indian Bank which was up more than 6% to hit a fresh 52-week high, Gabriel India rallied more than 10% and BF Utilities closed with gains of more than 3% on Friday.
We have collated a list of three stocks that either hit a fresh 52-week high or saw a volume or a price breakout.
We spoke to a trader on how one should look at these stocks the next trading day entirely from an educational point of view:
Analyst: Viraj Vyas CMT, CFTe |Technical & Derivatives Analyst| Institutional Equity, Ashika Stock Broking LimitedGabriel India:
Since its decline which began in September 2017, the stock has been engaged in a consolidation phase. During this period, a rounding bottom pattern has taken shape — a formation known for substantial accumulation and potential for significant price escalation.Notably, the stock has surpassed its previous highs in the previous month and has maintained its position above that level supported by robust trading volumes.
We see the stock moving in a defined range of Rs 305 to 350. Investors who already have a stake are advised to establish a stop-loss at the 205 level on a closing basis. This cautious approach safeguards against adverse movements.
BF Utilities:
Over the years, BF Utilities has encountered a notable downtrend in 2008, and from 2013 onward, it has navigated within a defined range, oscillating between a lower limit of 200 and an upper threshold of 750.
Notably, even during the COVID-19 crisis, the stock only descended to 150, respecting a previous swing low of 114 established in 2013, hinting at accumulation by more steadfast investors.
Since 2020, the stock has forged a series of ascending peaks and troughs, although volatility remains a characteristic feature.
June 2021 marked a significant turning point when the stock broke free from its descending trendline, setting the stage for a period of consolidation followed by a robust surge this month, culminating in a breakthrough above 530.
Projected movement for the stock points upwards, targeting the 900-level range in the subsequent months, while prudent risk management necessitates the placement of a stringent stop-loss at Rs 480. This strategic measure helps to mitigate potential downsides.
South Indian Bank:
The stock has potentially not rewarded investors since 2009 as it commenced its time and price consolidation. The stock traded in a brief range of 8 – 34.
The stock was up on Friday on the news of CEO appointment. Coming to technical view, although in the recent few months, the stock has formed a higher high low structure, it would be advisable to avoid trading or investing in such stocks owing weaker price strength and lack of larger trend visibility.
(Analyst Disclaimer: All of the above observations are shared for educational purposes only.)
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
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