Breakout Stocks: How Bajaj Auto, NBCC and Nestle India are looking on charts for Friday’s trade

Indian markets closed in the red on Thursday for the second in a row. The S&P BSE Sensex fell by over 200 points while the Nifty50 managed to hold on to 19600 levels.

Sectorally, buying was seen in auto, consumer durables, and FMCG stocks while metal, energy, oil & gas and power stocks saw some selling pressure.

Stocks that were in focus on Thursday include names like Bajaj Auto, which was up more than 6% to hit a fresh all-time high; NBCC India, which gained more than 9%, and Nestle India which rose more than 3%.

We have collated a list of three stocks that either hit a fresh 52-week high, or 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: Vivek Mashrani CFA, Director at Technofunda Ventures Private Limited

Bajaj AutoBajaj Auto hit a new all-time high and is trading in an uptrend. It is a good buy from a medium-term perspective as long as the trend is intact.

Fundamentally, the company has been in the limelight with its excellent quarterly result with its quarterly EBITDA surpassing Rs 2,000-crore milestone for the first time.

The September quarter profit increased by 20% on a YoY basis. Technically, one can ride the uptrend by trailing exit below Rs 5235 for the short term and Rs 4965 for the medium-term position.

NBCC
NBCC has been trading in a good uptrend and formed a new 52-week high on Thursday. Fundamentally, it has received an Rs 80 crore order from Visakhapatnam Port Authority.

Technically, it gave an excellent price-volume base breakout at Rs 55.70 on the weekly charts and it has been seeing strong follow-up moves for the last few weeks. It can be accumulated for the medium-term with a trailing exit below Rs 55.70.

Nestle India
Nestle on Thursday reported quarterly results for the September quarter, which were in line with estimates with positive commentary.

It crossed Rs 5,000 crore in quarterly revenue for the first time ever. It also approved a 1:10 stock split, which will further add liquidity to the stock.

Technically, it has given a good breakout on weekly charts and can be accumulated with a trailing exit below Rs 23,285 for the short term and below Rs 21,000 for the medium term.

Analyst Disclosure:
SEBI RA: INH000012272
TECHNOFUNDA VENTURES PRIVATE LIMITED

Financial Interest
Analyst: No
Analyst’s Relative: No
Analyst’s Associate/Firm: No

Financial Interest above 1% or more
Analyst: No
Analyst’s Relative: No
Analyst’s Associate/Firm: No

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