Breakout Stocks: How Suzlon Energy, Aster DM and Tata Motors are looking on charts for Thursday

The Indian market closed in the green for the fourth consecutive day on Wednesday. The S&P BSE Sensex gained over 350 points while the Nifty50 closed above 18700 levels.

The Nifty50 has scaled 18,700 levels for the first time since December 5, 2022. Sector-wise, buying was seen in telecom, utilities, metals, and capital goods.

Stocks that were in focus include names like Suzlon Energy, up over 18% to hit a fresh 52-week high; Aster DM Healthcare up nearly 6%, and Tata Motors that rallied over 2% to hit a fresh 52-week high on Wednesday.

We have collated a list of three stocks that either hit a fresh 52-week high or saw a volume or price breakout. We spoke to Utkarsh Jaiswal of TradingMonks on how one should look at these stocks the next trading day entirely from an educational point of view.

Expert : Utkarsh Jaiswal, Co-Founder TradingMonks, Trader

Tata Motors: Breakout from a weekly Triangle pattern
The post-Covid auto darling stock has reached all-time high after the breakout of a weekly Triangle pattern. Unprecedented bullishness is seen as after the breakout of weekly Triangle, it had never tested 50-EMA Band for pullback.

For traders, we need some pullback around the 50-EMA Bands on a daily timeframe for the purpose of a good risk reward trade.


Suzlon Energy: Wait for some pullback around the 50-EMA

It has broken the long-term resistance zone Rs 11-12 with strong green candles and volumes. We can sense contraction and accumulation by seeing the price and volume. We are expecting this bullishness to continue further.

Currently, one shouldn't jump the gun and should wait for some pullback around the 50-EMA Bands on a daily timeframe. For investors, the stock will become unfavourable below Rs 10, and for traders, a break of the current week's candle will signal weakness.


Aster DM Healthcare: Trading near ascending channel trendline

The stock is showing exactly the same pattern just like previous multibaggers i.e, a breakout of IPO base and then showing strength. No doubt this is currently trading at all-time highs but it is advisable to be cautious as it's nearing the ascending channel trendline, plus the big round number of Rs 300.

It had already given a daily run from Rs 210 to Rs 280. If we consider this daily run as the pole of the flag, then we must wait for corrective structure as flag formation will complete around Rs 250-260 levels, for a good risk-to-reward trade.


Analyst 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. Views mentioned are of the Analyst.

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