A bull market is what everyone is expecting after months of turbulence. There are some underdogs which may not catch an eye of many investors. Here, are some stocks on the verge of a breakout which may help you bring some fortune!
Cadila Healthcare Ltd (Zydus Cadila)
Cadila Healthcare Ltd (Zydus Cadila) also known as Zydus Healthcare is an Indian pharmaceutical company headquartered in Ahmedabad, Gujarat, India. The company is one of the leading pharmaceutical companies in India, with total revenue of ₹7,104.30 crores (US$1.0 billion) in 2019. It is a manufacturer of generic drugs.
Daily Chart
The daily chart of Cadila Healthcare shows that on 9 April 2020 it made an all-time high of Rs 374 making it a major resistance level. In the days following that 11-12-15 June 2020, the stock tried but failed to break out and sustain the given resistance above Rs 374. Also, the Fibonacci ratios indicate that the stock retraced to Rs 358 (38.2%).
Trading Pattern
The stock can be bought at the current price by taking Rs 350-358 as the support zone. The safe investors can buy the stock after the major resistance of 374 is breached and sustained.
Expected targets are Rs 390 - 410 -430
M & M Finance
Mahindra & Mahindra Financial Services Limited(MMFSL) is a Rural NBFC headquartered in Mumbai, India. It is amongst the top tractor financer in India and offers a wide range of financial products to address varied customer requirements. The NBFC has 1000+ offices spread across 1 in every 3 villages across India with a total of more than 4.7 million customers to date.
Daily Chart
According to the Daily chart of M&M finance, Rs 183 can be seen as the resistance level. In technical terms, the bowl-like shape in the above chart is a called a Tripple Bottom Pattern (to be explained in the next blog), which is a very effective bullish pattern. The RSI of 63 also confirms an expected entry of bulls.
Trading Pattern
Buy the stock after it breaks a level of Rs 183. Better volumes confirming the breakout can take the stock to the levels of Rs 210 - 240.
L & T Finance
Larsen & Toubro Finance is a subsidiary of Larsen & Toubro Ltd having an overall book size of Rs. 98,384 Crores coming from around 110 Lakh customers. Their products range from Two-wheeler Finance, Housing Finance, Farm Equipment Finance, Real-Estate Finance, Mutual Funds and micro-finances as well.
Daily Chart
The daily chart of L&T Finance shows that the stock is moving in a steady channel with resistance at Rs 70. Once the prices cross Rs 70 with heavy volumes the targets of Rs 80-90 can be witnessed in the short-term period. The stop loss can be taken as Rs 65-66.
Fiem Industry
Fiem Industry is a 45-year-old manufacturing company catering to over 50 corporate clients with 9 manufacturing facilities. While on one hand, the company produces LEDs and street/tunnel lights, on the other hand, it acts as an ancillary to the automobile industry producing head and tail lamps. Recently, the company has organised a number of collaborations with various Japanese companies to synergise manufacturing and R & D.
Daily Chart
According to the FIEM IND Daily chart, Rs 320-325 was the resistance zone which now has become the support zone after the breakout. The breakout witnessed very good volumes with a full green body candlestick. The stock may retrace back to Rs 320 (also the stop-loss), but given a positional buy, we should not miss the opportunity of an upcoming upside. In case the stock retraces, more can be bought at lower levels.
The charts provide us with a one-year target of Rs 460.
Adani Gas Ltd.
Adani Gas is a wholly-owned subsidiary of the AdaniEnterpriseLtd(AEL) and was incorporated for setting up a distribution network in various cities to supply natural gas to industrial, Commercial, Domestic and CNG Customers.
Daily Chart
Rs 143-145 is the resistance zone in the Adani Gas Ltd Daily chart. 3 June to 19 June saw a consolidation phase (i.e. accumulation and distribution stage) for the stock. Once the resistance zone is breached, price levels of Rs 150-160 can be seen in the near future.
Century Textile & Industries Ltd.
Century Textile and Industries is a textile, paper manufacturing and export company based in Mumbai. The main business activity involves the manufacture of cotton textiles, yarn, denim, viscose filament rayon yarn, tire-cords, caustic soda, sulphuric acid, salt, pulp, and paper.
Daily Chart
Century Textile daily chart has a pattern defined as Symmetrical triangle pattern (will explain in our next blog). The upper line of the triangle pattern is the resistance at Rs 319-320. If this resistance is crossed with heavy volumes we might see target levels of 360-400 in near term future. The Relative Strength Index is also a strong one at 60.
The stock can be bought after the breakout with a stop-loss of Rs 318-320.
We hope that the market on Monday turns out to be a bumper one. For more such updates stay tuned to our blog.
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