​Technical Breakout Stocks: How to trade Glenmark Pharma, Oil India and MCX on Monday

Sectorally, buying was seen in utilities, healthcare, and realty stocks.

Stocks that hit fresh record highs include Glenmark Pharma, which was up nearly 3%, Oil India, which pared gains after reaching record highs, and MCX, which closed 3% higher, achieving new record highs on Friday.

We spoke to an analyst about how to approach these stocks for the next trading day, purely from an educational perspective:

Analyst: Virat Jagad, Technical Analyst at Bonanza Portfolio Ltd.

Glenmark Pharmaceuticals Ltd has established a strong resistance zone between 1,700 and 1,710 on its daily chart, where significant buying activity has been driving the stock upwards. Recent price movements indicate buyers are in control, as the stock has broken out of an ascending triangle formation. Additionally, the stock is trading above key moving averages, further supporting the bullish trend.

The Directional Movement Index (DMI+) surpassing the DMI- confirms positive momentum, and the Average Directional Index (ADX) above 55 highlights the strong underlying strength of the uptrend.

These indicators suggest a positive outlook for Glenmark Pharmaceuticals Ltd, with potential for continued gains up to the 1880 level, while a key support level is identified at 1,675.

Oil India Ltd. is currently displaying a higher high, higher low pattern, a classic bullish chart setup. However, the stock has now entered a rising wedge formation at elevated levels. The latest candlestick shows a long upper shadow, suggesting potential momentum exhaustion.

Today's candlestick has formed a spinning top pattern, often indicating a potential reversal and possible profit-taking. Additionally, a negative divergence between the price and the RSI has developed, signaling a potential pause or weakening in the current trend.

Multi Commodity Exchange of India Ltd. has achieved a significant milestone by reaching its 52-week high, marking one of its highest closings ever.

The bulls have maintained their dominance, with buying pressure pushing the stock to close with a green-bodied candlestick and a lower wick.

The ongoing positive movement is supported by increased trading volume, reflecting strong and consistent demand for the stock.

On the momentum front, the Relative Strength Index (RSI) is trading above its moving average and moving upward, indicating continued upward momentum in the near term.

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