Breakout Stocks: How to trade RattanIndia, KEI Industries and PCBL on Wednesday

Indian market bounced back on Tuesday after falling for two straight days. The S&P BSE Sensex rose over 270 points while the Nifty50 closed above 19750 levels.

Sectorally, buying was seen in consumer durables, realty, healthcare and auto stocks while energy, public sector and oil & gas stocks saw some selling pressure on Tuesday.

Stocks that were in focus include names like RattanIndia Enterprises which rose over 17% to hit an all-time high, KEI Industries which gained over 6% and PCBL which closed with gains of over 5%.

We have collated a list of three stocks that either hit a fresh 52-week high, or all-time high or saw a volume or a price breakout.

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: Kush Ghodasara, CMT, SEBI RA : INH000002137

RattanIndia Enterprises Ltd:
The stock has given a breakout with heavy volumes to hit a new high on Tuesday. Momentum indicators give an internal crossover, which suggests more upside.The support of 5–10-day average is far away so fresh positions are risky at this price. The existing position can be held with a trailing stop loss at 71.

KEI Industries:
The stock has been in a consolidation phase since July but gave a breakout at 2,760 a couple of days back.

Indicators are given internal positive crossover and also MACD has given crossover at 0 line suggesting a new buy.

Even the 5-day moving average is crossing the 10-day average from below suggesting a fresh for the next 3-4 weeks. A stop loss can be placed below Rs 2780 and a target of Rs 3300.

The stock has moved out from an upside trending channel 3 sessions back and is now taking support at the previous resistance line.

Indicators are positively placed, and the momentum is suggesting a new buy for the short term with a stop loss at the trend line at Rs 230. The short-term target is placed around Rs 261.

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