Breakout Stocks: How to trade HDFC Bank, Praj Industries & Kaynes Technology on Wednesday?

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Nov 26, 2024, 05:40:29 PM IST

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Market Summary

Indian markets pared early morning gains to close marginally in the red on Tuesday. The S&P BSE Sensex fell more than 100 points while the Nifty50 closed below 24200 levels.

“Nifty has given a good relief rally in the last 3 trading days due to Maharashtra election results. We will have a cautious and sell on rise view on markets for the next 6 months,” Ankit Choudhary Co-Founder, Financial Independence Services, said.

“We can pre-empt a head & shoulder formation on daily charts, and we might see levels of 22,000 in the Nifty. Levels closer to 24500-24700 levels are strong resistance levels for the index,” he said.

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Sectoral Summary

Sectorally, buying was seen in metal, telecom and IT stocks while some selling was visible in healthcare, energy, oil & gas, auto and utilities.

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Breakout Stocks

Stocks that hit fresh highs include names like HDFC Bank which pared gains but still closed with a positive bias after hitting record highs, Praj Industries rose 0.6% and Kaynes Technology closed with gains of more than 1% on Tuesday.

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Analyst Call

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: Ankit Choudhary Co-Founder, Financial Independence Services, SEBI Registered Investment Advisors, Registration Number – INA100008939, BASL Number – 1628

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HDFC Bank:

The stock faces stiff resistance around the 1800-1850 levels. It was up by 3% on Monday due to MSCI rebalancing and has a tendency to give fake breakouts, as shown in the charts below. The stock has good support at the 1700 and 1600 levels.

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Praj Industries:

The stock is facing stiff resistance at the 800-825 levels and has good support at the 650 level. We will follow a buy-on-dip approach for this stock at levels of 650 with a stop-loss (SL) at 494.

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Kaynes Technology:

The stock made a high of 6145 today, achieving a new lifetime high. We advise investors to book profits at this level and look to re-enter near the 200 EMA.

Avoid getting trapped at higher levels, as the stock is likely to retrace to meet its 200 EMA, which would be a good entry point.

The current level of the 200 EMA is 4255, but this line will keep moving up. Whenever the stock aligns with this level, consider entering again.

Technically, the daily chart is also in a range, as drawn. Therefore, book longs and wait for a re-entry.Analyst Disclaimer: Do consult your financial advisor before taking any action as levels shared are for learning purposes only.

Analyst Disclaimer: Do consult your financial advisor before taking any action as levels shared are for learning 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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This article was originally published by Indiatimes.com. Read the original article here.