Sectorally, selling was seen in power, utilities, public sector, and telecom stocks.
Stocks that were in focus include names like KEC International which pared some gains after hitting a 52-week high, Escorts Kubota also closed flat with a positive bias after hitting a fresh 52-week high and BSE pared gains and closed with a loss of nearly 1% on Wednesday.
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 Ashish Kyal on how one should look at these stocks the next trading day entirely from an educational point of view:
Here’s how the CMT, Founder – Waves Strategy Advisors and SEBI registered research analyst has to say:
KEC International:
KEC International in the previous session witnessed a massive volume spike and formed a new 52-week high near the 699 level. After the breakout from the channel, prices retested the support and showed a huge spike.
On the daily chart, prices formed a bullish candle with a higher wick which suggests profit booking at higher levels.
We have applied the Ichimoku cloud. We can see that, in this entire up move, every time prices gave a dip towards the baseline (red) and bounced back on the upside.
In short, any breach above 650 will add to the bullish momentum. On the downside, 620 is likely to act as near-term support.
Escorts Kubota:
Escorts Kubota on the daily timeframe has been moving up in a higher high higher low fashion. The stock is trading in an upward-sloping channel.
Currently, prices are approaching resistance level but there is still some space left on the upside. We have applied Bollinger bands. On the daily chart, prices have given a close above the upper bands.
A follow-up buying above the upper bands can result in some more rise and then we can expect a move towards the channel resistance.
For now, one can buy at current levels with a target of 2,700. On the downside 2,470 is the nearest support level.
ETMarkets.comBSE:
BSE in the previous session closed with a loss of -0.56% by forming a neutral candle. For the last one-month RSI has been trading in an overbought zone.
The possibility of sudden reversal cannot be ruled out. Also, we can see since July 25 not a single candle has closed below the previous day’s low which shows the strength in the trend.
Currently, the stock is trading in a parallel channel, and we witnessed some profit booking exactly from the channel resistance.
We have shown Bollinger Bands. As in this entire rise, the mid-band has continued to act as a support.
As long as the price holds mid-bands one can continue to ride the target with the target of 900. As per this, medium-term support is near 760 levels.
ETMarkets.com(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)