Breakout Stocks: How Finolex Industries, BEML and Gujarat Pipavav are looking on charts for Wednesday’s trade

Indian market closed in the green for the second straight day on Tuesday. The S&P BSE Sensex settled above 65,000 while the Nifty50 ended above 19,300 levels.

Sector-wise, buying was seen in realty, utilities, metal, power and capital goods while selling was seen in telecom, FMCG and healthcare.

Stocks that were in focus on Tuesday include names like Finolex Industries that gained over 7%; BEML that rose over 13% and Gujarat Pipavav Port that closed with gains of over 7%.


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

Here’s what the Director at Technofunda Ventures Private Limited had to say:

Finolex Industries
Finolex industries is in the business of PVC pipes and PVC resins. The stock recently crossed the latest resistance on weekly charts around Rs 195 and currently trades at Rs 235.

However, this was the top during the last uptrend cycle and hence stock may face a psychological resistance at these levels. One should either try to look for an entry above and close to Rs 243 with Rs 234 as stop loss or wait for correction. Further, post correction, if there is a base formation Rs 195, which was previous resistance, one can look for an entry post chart study.

BEML
BEML is one of the key companies in India’s listed defence space. Currently, the defence sector is in huge tailwinds and BEML is also getting benefit of that. However, Tuesday’s price move does not provide any favorable risk reward to take a trade as the move is quite extended and far from its last static resistance as well as the 20 and 50 day exponential moving average. It is suggested to keep the stock in watchlist as it is a tailwinds sector stock and wait for better risk reward points for entry.

Gujarat Pipavav
The company is in ports business and one of the leading ports. Growth has been stagnant in the last few years and stock is at a good dividend yield. Last few quarters, there has been a surge in other income leading YoY growth in PAT for the last two quarters. This could be one of the reasons for the price up move. Since July 2023, the stock is continuously facing resistance around Rs 124-126 levels. The last attempt with high volumes to cross Rs 126 had failed and on Tuesday again the stock attempted the same with high volume and managed to do so. This provides a good risk reward if price stays above this level. One can keep a stop loss of Rs 123-124 and may plan a trade. However, given there are no immediate growth signs in the business, the expectations for a price runup should be reasonable if the trade works.

Disclosures:
Kumar Saurabh, Director at Technofunda Ventures Private Limited
Analyst Disclaimer
SEBI Registration number: INH000012272

Financial Interest
Analyst: Yes ( Our director, Vivek Mashrani , holds BEML in his personal portfolio)
Analyst's Relative: No
Analyst's Associate/Firm: No

Financial Interest above 1% or more
Analyst: No
Analyst's Relative: No

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