Technical Breakout Stocks: How to trade Caplin Point Laboratories, AkzoNobel India and Ipca Laboratories on Friday?

Sectorally, buying was seen in IT, telecom and consumer durable while selling was seen in power, infra, capital goods and realty stocks.

Stocks that hit fresh record highs on Thursday include names like Caplin Point Laboratories which rose over 7%, AkzoNobel India which rose nearly 3% and Ipca Laboratories which closed with gains of over 2%.

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 analyst Kush Ghodasara (CMT SEBI registered RA : INH000002137) had to say:

The stock has been trading in the uptrend channel since the low 1,469 in August and it's still intact. Momentum indicator RSI is in the overbought zone but still looks good for an up move.



On the other hand, MACD is moving strong in the north above 0 line, which is supporting all other bullish factors. For the short term, the 10-15-day average in 1,917 is acting as strong support.



Therefore, we can still go along with the stop loss at 1,917 for the targets at 2,280, which is resistance of the trend line above which we can also get at 2400+.

The stock has been trending up since the low at 1,000 in July while it has formed an ascending triangle, which has just been confirmed on Thursday with breakout at the neckline 1417.


Indicators like RSI were moving south but with today's move they have taken a U-turn towards north and given an internal positive crossover to support the triangle breakout.


Short-term traders can still go long with the stop loss at 1,389, which is a 10-day average while targets are at 1,580.

The stock is a bit illiquid in volumes but recently it has attracted some fame. It has been travelling upside down since the low at 2,760 in July. Momentum indicator is in the overbought zone but still has some fizz for an upside momentum.


But the stock is far away from short-term support of 10–15-day averages, which are at 3,380. Therefore fresh positions are not recommended. Existing postings can be booked at 3,790.



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