Technical Breakout Stocks: Mahanagar Gas, Policy Bazaar and Britannia Industries hit fresh record highs on Tuesday

Sectorally, buying was seen in auto, utilities, consumer durables, telecom and realty while selling metal, infra and capital goods saw selling pressure.

Stocks that hit fresh record highs include names like Mahanagar Gas rose over 4%, PB Fintech jumped more than 3% and Britannia Industries closed with gains of more than 1% on Tuesday.

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

The stock had been resisting the 1,907 level for the last 2 months, but on the other hand, it was making higher lows, forming an Ascending Triangle. On Tuesday, we have breached the neckline with higher-than-usual volumes, which makes the breakout more meaningful.



The momentum indicator RSI has turned north and given an internal bullish crossover, supporting the pattern breakout, while MACD is also about to support the breakout.



On the downside, the 5-10-day average is placed at 1,828, which acts as a support and stop loss, while the target can be 2,100+.

The stock has been in an uptrend since the breakout on 14th August when it was recommended for the target of 1,890, which is almost achieved on Tuesday.


However, the stock is now ready for the next breakout with more upside potential to 2,100. On Tuesday, we saw a Rounding Formation breakout, while RSI has taken a U-turn to move north again, suggesting a strong rally in the short term.


Even the MACD is turning in favour of a fresh rally towards 2,100, while the stop loss can be kept at the 10-day average of 1,760.

The stock has been trading in an uptrend since the low on 14th August at 5,594, continuously taking support at the 5-10 day average, which is now situated at 5,945.



On Tuesday, the stock nudged out of the channel in the north direction but couldn't sustain. However, the RSI has given a bullish crossover, suggesting more upside.



Therefore, we can take the risk of buying on a premature breakout, with a stop loss at 5,945, while the targets can be at 6,400.



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