Technical Breakout Stocks: Zomato, FDC and Indigo hit fresh record highs; what should traders do?

Sectorally, buying was seen in auto, power, telecom metal and IT stocks.

Stocks that hit fresh record highs include names like FDC which rose more than 6%, Zomato gained more than 4% and InterGlobe Aviation closed with gains of more than 1% on Thursday.

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: Rajat Kulshrestha, Equity Research Analyst at Livelong Wealth

On Thursday, the stock went up by almost 5% in a single day. The stock has given a trendline breakout in the daily time frame.

A breakout from the important Fibonacci resistance level will activate once the price closes above 280.90 and is heading toward its target of 312 (T1) and 351 (T2), provided today's CMP closes above the 280.90 price level.

The stock is experiencing good buying pressure and has crossed the 50 MA on the volume chart.

On Thursday, the stock gained good momentum, forming a strong bullish green candle after moving within a 6-day consolidation phase. Today, the stock went up by 8%.

The price is heading toward its target of 711 (T1) and 778 (T2). The stock is experiencing good buying pressure and has crossed the 50 MA on the volume chart.

The stock broke a resistance zone with a strong bullish green candle after moving within an 11-day consolidation phase.

The stock is experiencing good buying pressure and is heading toward its next target of 5524 (T1). There is a high chance the stock might retest from the ₹4858–4924 zone, with the next support at 4771.

The stock is experiencing good buying pressure and has crossed the 50 MA on the volume chart over the last two days.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)