trade setup: Breakout Stocks: Trade setup for The New India Assurance, General Insurance and SPARC which hit 52-week highs

Indian market closed flat with a negative bias for the second consecutive day in a row on Friday. The Nifty50 closed below 19800 levels.

Sectorally, buying was seen in capital goods, utilities, healthcare, and banks while selling was seen in IT, FMCG, oil & gas and consumer durables.

Stocks that were in focus include names like The New India Assurance Company rose 20%, General Insurance Corporation gained more than 16% and Sun Pharma Advanced Research Company (SPARC) closed with gains of nearly 6% to hit a fresh 52-week high on Friday.

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: Riyank Arora, Technical Analyst at Mehta Equities Ltd

The New India Assurance Company Ltd: LTP Rs 209The stock has given a strong breakout above Feb 2021 highs with a sharp rise in volumes. With the price rising over 20% in a single day, the overall momentum looks strong.

The stock has a minor resistance at 219 – above which the current up-move can accelerate towards 250 and 266.

If the stock re-tests 195 to 200 zone; it would offer a good buy opportunity with a stop loss below 187.50 for targets of 250 and 266.

General Insurance Corporation of India: LTP Rs 307
The stock showed a sharp move, rising over 16% in Friday’s trading session. There is an immediate resistance at 320 for the stock, above which we can see 335 and 385 coming in.

Overall, the structure looks very strong with the stock making higher highs and higher lows indicating a sharp up-trend.

Any breakout above the level of 320 should bring in a strong momentum rally towards 335 and 385 in a spree of up-move.

GICRE-breakout

SPARC: LTP Rs 273
The stock has given a good breakout on its daily and weekly charts, giving a strong closing above the 267.50 mark.

With a sharp rise in volumes, the momentum looks very strong for a poised up-move towards 290 and 300, with a firm stop loss set near the 256 mark.

The stock has also made a Cup & Handle Breakout Pattern on its daily charts showing signs of a good positive up-move in the coming few weeks.

Strong technical structure coupled with huge volumes is a big positive sign for the stock.

SPARC-breakout

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

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