Breakout Stocks: How FACT, Gujarat Pipavav and Aditya Birla Capital are looking on charts for Wednesday

The Indian equity indices closed higher on Tuesday, tracking a mixed trend in the global markets.The S&P BSE Sensex rose more than 400 points while the Nifty50 closed above 18800 levels.

Sector-wise buying was seen in realty, banks, metals and healthcare space while selling was visible in oil & gas and FMCG stocks.

Stocks that were in focus include names like FACT (rose nearly 11% to hit a fresh 52-week high), Gujarat Pipavav Port (rose more than 4%) and Aditya Birla Capital (closed with gains of over 6%) on Tuesday.


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 Sunil Gurjaron on how one should look at these stocks the next trading day entirely from an educational point of view:

Here’s what Sunil Gurjar, Founder of Chartmojo, says:

FACT
FACT has been looking great on the charts and it seems to have broken out from its 52-week high. The breakout occurred on Tuesday from a tight consolidation of the last 4 trading sessions, which is signifying a good potential upside from hereon.

Tuesday’s breakout candle low should be acting as an invalidation zone on the downside.

Gujarat Pipavav
Currently, we should be cautious to initiate any fresh positions in this stock and I would stay away from the same as the risk-to-reward ratio does not seem to be favourable.

If we look at the historical price action movements, it shows many volatile days which might lead to stop loss hunting after you buy any breakouts!

Aditya Birla Capital
The counter has given a breakout from the broadening Wedge continuation pattern on the daily time frame. The counter can perform strongly in the forthcoming trading sessions.

Tuesday’s breakout candle low is the price point where this pattern will become invalid to trade.

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