Stocks that were in focus on Monday include names like Poly Medicure, which rose more than 14%; Ircon International that closed with gains of over 6%, and IRFC that ended over 10% higher to hit a fresh 52-week high.
We have collated a list of three stocks that either hit a fresh 52-week high or saw a volume or a price breakout.
We spoke to analyst Ankit Choudhary on how one should look at these stocks the next trading day entirely from an educational point of view:
Here’s what the Co-Founder, Financial Independence Services (SEBI Registered Investment Advisors, Registration Number – INA100008939) has to say:
IRFC
IRFC, after giving a monthly breakout above 37.5, was suggested by us to buy above Rs 38.55 for a short-term target of Rs 42 on 31st July to our ET viewers.
On Monday, it has given another 10% move and now we suggest you to be cautious on the scrip majorly because of 2 reasons:1) RSI in the stock is now Rs 89.81, which suggests that the stock is overbought now and previously as well. Max RSI in this stock is Rs 93.83.
2) In markets, stocks take resistance from round levels and IRFC has on Monday achieved a round level of Rs 50.
So, short-term traders can book their profits and look for a cooldown in the stock. Long-term investors should enjoy the ride and not worry at all.
ETMarkets.comPoly Medicure
Poly Medicure was up by 12.6% as it posted a good set of numbers. If we look at the daily charts, it has given a range breakout above Rs 1,315 levels.
The stock faces stiff resistance around Rs 1,500 levels and the RSI is also in the overbought zone, so the risk-to-reward is not favourable at the current level.
We would like the stock to consolidate between Rs 1,400 and Rs 1,500 for a few days and then give a fresh breakout.
ETMarkets.comIrcon International
Ircon gave a Pole & Flag breakout on Monday. If it is able to cross and sustain above Rs 104 levels, we can see trading targets of Rs 107 and swing targets of Rs 109.9.
Do consult your financial advisor before taking any positions and keep 1-1.5% as the standard happy stop loss for all trading positions, and for swing trades maximum stop loss should be 4-5% as markets are supreme.
Happy stop loss means that the loss is manageable and recoverable in the next trade and does not cause any financial distress.
A sound mindset and discipline are integral parts of trading so if you wish to enhance your trading journey do work on your mindset along with technical analysis skills.
ETMarkets.com
(Analyst Disclaimer: All charts are shared for learning purposes only and we strongly recommend you to consult your financial advisor before taking any positions.)
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of the Economic Times)