Breakout Stocks: How to trade Divi’s Laboratories, Ipca Laboratories and Glenmark Pharma on Monday?

Sectorally, buying was seen in energy, consumer durable, IT, oil & gas healthcare and metal stocks while selling was seen in auto, banks, utilities and realty stocks.

Stocks that hit fresh record highs include names like Divi’s Laboratories which was up more than 3%, Ipca Laboratories rose nearly 4% and Glenmark Pharma closed with gains of more than 2% to hit fresh highs on Friday.

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: Drumil Vithlani, Technical Analyst, Bonanza

On the weekly time frame, DIVISLAB has shown consistent strength by making higher highs, gaining nearly 13.21% over the past week.

Despite sluggish performance in the broader indices, the stock reached a fresh record high of 6,159.85, highlighting its strong momentum.

The price structure reveals a rounding formation breakout, followed by a healthy three-week correction, and now a sharp bullish candle, signaling a continuation of the uptrend.

In summary, the trend for DIVISLAB remains bullish. Investors can consider using dips towards 5,865 as a buying opportunity

On a Daily time frame, IPCALAB has given a breakout of its all-time high indicating a continuation of the uptrend. The security has closed near its high indicating buyers are keen to buy the security.

The volume increase supports the price action, indicating buyers are keen to buy the security at the current market price. On the average front the price is trading above its 50 and 200 EMA indicating an uptrend.

On the directional front DI+ is trading above DI- indicating an uptrend whereas ADX trading above DI- indicates strength in the move.

Glenmark Pharma Ltd. is currently demonstrating a bullish trend, characterized by a higher high, higher low pattern—a strong technical setup.

The stock has recently broken out from a rounding bottom formation on the weekly chart, with the latest candlestick displaying a long-bodied green candle, signaling potential upside momentum.

This week's formation of a bullish Marubozu pattern further supports the likelihood of continued upward movement.

Additionally, the Relative Strength Index (RSI) is positioned above its moving average and is trending upward, indicating sustained positive momentum in the near term

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