Breakout Stocks: How Metro Brands, Chalet Hotels and Vedanta are looking on charts for Wednesday’s trade

The Indian market closed in the red on Tuesday, tracking muted global cues. The S&P BSE Sensex fell over 300 points while the Nifty50 closed below 19,600 levels.

Sectorally, buying was seen in capital goods, consumer durables, and realty stocks while oil & gas, auto, energy, and power stocks saw some selling.

Stocks that were in focus include names like Metro Brands that rose more than 12%, Chalet Hotels that gained over 2% and Vedanta that closed with gains of nearly 4% on Tuesday.


We have collated a list of these 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 Ankit Choudhary on how one should look at these stocks the next trading day entirely from an educational point of view.

Here’s what the Co-Founder of Financial Independence Services, (SEBI Registered Investment Advisors, Registration Number - INA100008939) has to say:

Metro Brands
Metro Brands made a high of Rs 1298.8 on Tuesday but closed at around Rs 1265. It has given a huge breakout with strong volumes on daily, weekly, and monthly charts.

It is forming a Pole & Flag Pattern on the hourly charts with RSI cooling off to Rs 70 levels. One can consider taking fresh positions above Rs 1300 with a stop loss of Rs 1234 for a target of Rs 1364 and target 2 of Rs 1450.

Chalet Hotels
Chalet Hotels gave a good breakout on daily and weekly charts on Tuesday but could not sustain the gains and faced some resistance around Rs 595-600 levels.

With the World Cup, festivals, and marriage season around the corner, all hotel stocks are expected to post good results in the coming quarters.

If the stock is able to sustain above the Rs 600 level, one can take fresh positions for the first target of Rs 660, and a target 2 of Rs 720. A stop loss can be placed below Rs 539.

It is forming a Pole and Flag pattern on the weekly timeframe. We could name it as a Techno-Funds pick where fundamentals and technicals align together.

Vedanta
Vedanta was up by 3.6% on the news of de-merging into 6 listed companies, which will help unlock value for the shareholders.

As per CEO Anil Aggarwal, promoter shareholding in Vedanta is around 65% in and demerger will help these companies have a focused approach and run in auto mode.

It has taken good support at the low of the previous weekly swing price level of Rs 206 and is now moving in an upward direction.

One can consider taking fresh positions above Rs 234 with targets of T1-245 and T2- 255 and a stop loss can be placed below Rs 224.9 on a closing basis.

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