Stocks that were in focus on Tuesday include names like NESCO which was up nearly 5% to hit a fresh record high, Cochin Shipyard which rose more than 5% and Bharat Electronics which closed with gains of over 4%.
We have collated a list of three stocks that either hit a fresh 52-week high, or an 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:
Here’s what Deven Mehata, equity research analyst at Choice Broking had to say:
NESCO
NESCO is presently priced at Rs 905 level, having established a robust support zone within the range of Rs 820-860 levels.
This consolidation phase not only signifies a solid base for the stock but also aligns closely with its 20-day Exponential Moving Average (EMA), further reinforcing the support level.
The stock’s resilience is evident as it trades above crucial moving averages, underlining its inherent strength.
Analysing the weekly chart reveals a positive momentum, with the Relative Strength Index (RSI) climbing to 80 levels, signifying strong bullish momentum.
Investors who entered at lower levels are advised to secure profits by partially selling their holdings at the current market price. Additionally, implementing a trailing stop-loss strategy at Rs 820 level can help protect accumulated gains.
For those considering fresh investments, a prudent approach involves waiting for potential pullbacks and aiming for entries around the Rs 860 level.
This strategy accounts for optimal risk management and capitalizes on the anticipated strength of the established support range.
As NESCO exhibits promising technical and strategic entry points, investors can position themselves strategically to navigate potential market fluctuations while capitalizing on the stock’s upward potential.
ETMarkets.comCochin Shipyard
Cochin Shipyard, presently trading at Rs 1377 level, exhibits a robust technical outlook, supported by both weekly and daily chart analyses.
Over the last 8 weeks, the stock has consistently formed a higher high and higher low pattern on the weekly charts, reflecting strong and sustained upward momentum.
The daily chart further reveals a consolidation phase within the Rs 1,230-1,330 range, with the lower boundary aligning closely with the 20-day Exponential Moving Average (EMA). This convergence underscores the stock’s resilience and underlying strength.
Trading above key moving averages, Cochin Shipyard affirms its positive trajectory, signifying a favourable technical setup. The momentum indicator, as indicated by the Relative Strength Index (RSI) at 67 levels, emphasizes the stock’s strength and potential for further upward movement.
The recent breakout above the upper band of the consolidation range, supported by robust volumes, signals a potential continuation of the bullish trend.
Investors are advised to view any pullbacks in Cochin Shipyard as buying opportunities, leveraging the stock’s positive technical posture.
With a compelling combination of higher highs, consolidation support, and strong volumes, Cochin Shipyard demonstrates the potential for sustained upward momentum, making it an attractive prospect for investors seeking favorable risk-reward opportunities.
ETMarkets.comBEL
Bharat Electronics Limited (BEL), currently trading at Rs 182 level, has displayed a compelling technical picture with notable breakout patterns on both daily and weekly charts.
The stock’s robust move above the Rs 175 level, accompanied by strong volumes, underscores a surge in buying interest and suggests an upward momentum.
Furthermore, BEL is trading above its short-term (20-day), medium-term (50-day), and long-term (200-day) Exponential Moving Average (EMA) levels, reinforcing its positive stance across various time frames.
The weekly charts depict a consistent higher high and higher low formation over the last five weeks, indicating sustained bullish momentum.
While the Relative Strength Index (RSI) on the daily chart has approached overbought levels around 80, implying potential overextension, investors are advised to exercise caution.
Waiting for dips in the stock to capitalize on more favourable entry points could enhance the risk-reward profile for those seeking exposure to BEL.
For existing short- to medium-term investors who entered BEL at lower levels, trailing stop-loss orders at Rs 160 levels—just below the strong support zone and 20-day EMA—can help safeguard gains and manage risk effectively.
Overall, BEL’s technical indicators suggest a positive outlook, and strategic entry and risk management approaches can help investors navigate potential volatility while maximizing potential returns.
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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)