Sectorally, buying was seen in consumer durables, healthcare, and capital goods, while selling pressure emerged in utilities, power, FMCG, and IT stocks.
Stocks that hit fresh 52-week highs included BSE, which surged over 5%, Redington, which rose more than 4%, and APL Apollo Tubes, which pared intraday gains to close 0.6% higher on Tuesday.
We spoke to an analyst for an educational perspective on how to approach these breakout stocks in the next trading session:
Analyst: Rajat Kulshrestha, My Mudra Fincorp Pvt Ltd
BSE
The stock broke out of a strong resistance zone between Rs 6,652 and Rs 6,859, where it had been consolidating for the last 20 days. It rallied over 6.12%, or Rs 421, on the breakout day.Now that the breakout has occurred, the potential targets are Rs 8,357 (T1) and Rs 9,626 (T2) in the coming weeks. Strong support and a suggested stop loss lie at Rs 6,448.The stock has delivered stellar returns—over 200% in the past year and 62.65% in the last 6 months. On Tuesday, it also registered a new all-time high, breaching the Rs 7,305 level.
It is witnessing strong buying interest, and volumes have crossed the 50-day moving average on the daily chart.
ETMarkets.comAPL Apollo Tubes
The stock gave a trendline breakout with a strong bullish candle, rising 4.20% or Rs 69.40.
Based on price action, the potential targets are Rs 2,240 (T1) and Rs 2,624 (T2), with a stop loss at Rs 1,567.
The stock has returned 10.35% over the past year and 15.28% in the last 6 months.
It is also experiencing strong buying interest, with volumes surpassing the 50-day moving average on the daily time frame.
ETMarkets.comRedington
Redington gave a breakout and subsequent retest of the strong resistance zone between Rs 251 and Rs 260.
If it manages to break and sustain above Rs 260, the potential target is Rs 328.95, with a stop loss at Rs 238.
The stock has delivered a return of 28.90% in the past year and 46% in the last 6 months.
Like the others, Redington is also seeing strong volume-backed buying, with volumes crossing the 50-day moving average on the daily chart.
ETMarkets.com(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of The Economic Times)
