Breakout Stocks: What should investors do with Cyient, HEG and Graphite India on Monday?

The Indian market snapped a two-day fall on Friday and closed in the green. The S&P BSE Sensex rose more than 100 points while the Nifty50 closed above 18,500 levels.

Sectorally, buying was seen in metals, realty, telecom, and auto while selling was seen in oil & gas, energy, and IT stocks.

Stocks that were in focus include names like, Cyient that rose more than 6%, HEG that rose more than 9%, and Graphite India closed with gains of more than 12% 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:

Expert: Shubham Shitole-Deshmukh, NISM Certified Research Analyst

Graphite India: Super bullish price action in Graphite India chart
The stock shows huge volume accumulation with 11X more volume. Recently the Resistance of Rs 350 was breached and now the same may act as support.Looks like the next resistance will be at Rs 418 and the stock is expected to reach those levels. Interestingly the stock has shown the highest volume in the last one year and should be kept on one’s radar.

Cyient: Rounding Bottom breakout in Cyient
The stock shows huge volume accumulation in the last one Month while achieving an all-time high breakout at the same time. There is support at Rs 1290.

Generally, in case of a rounding bottom breakout, the price can go up the size of the bottom (Bottom Size: Rs 609). So, the stock can be expected to head towards Rs 1900.

HEG: Cup & Handle breakout in HEG
The stock has shown the highest volume in the last one-year. The Cup & Handle Breakout with Big Volume Accumulation.

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Generally, in the case of a cup and handle breakout price can go up the size of cup bottom (Cup Size: Rs 363). So, the stock can be expected to head towards Rs 1600.

Disclaimer: I’m not a SEBI registered advisor, please consult your financial advisor before investing any money. All of the above observations are shared for educational purposes only.

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

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