Sectorally, buying was seen in IT, auto, capital goods, and the public sector.
Stocks that were in focus include names like Nippon Life AMC which rose nearly 15%, HDFC Asset Management Company rose over 12% and M&M closed with gains of over 4% to hit a fresh 52-week high 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 about how one should look at these stocks the next trading day entirely from an educational point of view:
Analyst: Ashish Kyal, CMT, Founder – Waves Strategy Advisors
Nippon Life
Nippon Life jumped nearly 15% after media reports suggested that the proposal to reduce the expense ratio has been postponed. The stock is currently riding on the news and is currently trading in an overbought zone.
Technically the price is forming a higher high higher low fashion. The baseline of the ichimoku has also acted as a support for the price and prices have bounced back preciously from it.
We need a dip in the price and the RSI to cool down for further bullish momentum to continue. One can use dips towards 280 as a buying opportunity with the targets of 320 and by keeping stop loss near 270 levels.
ETMarkets.comHDFC AMC
HDFC AMC rose around 15%. Asset Management Companies (AMC) is up because of the recent outcome by the SEBI. Along with this, KST has already shown a crossover and is currently trading near the 0-line suggesting that further good momentum is likely to continue.
On the weekly chart, the stock has formed a double bottom pattern. A weekly close above 2310 can confirm the breakout of the said pattern which can take prices further higher.
ETMarkets.comMahindra & Mahindra
Mahindra & Mahindra rose around 4% and is currently trading at lifetime high. As we can see on the charts, it has given a breakout from a double bottom pattern. Although it is a reversal pattern, this time it has made an exception.
The price has given a breakout of the upper band and the trendline which is a positive sign. Also, we have used MACD, and it is also showing crossover, but confirmation is still pending.
One can continue to ride this uptrend by keeping the stop loss of 1370 levels (which is also the support of the double bottom pattern).
ETMarkets.comAnalyst Disclaimer:
ETMarkets.com(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
