Breakout Stocks: How to trade AU Small Finance Bank, Max Financial & Redington that hit fresh 52-week high?

Indian market closed in the red for the second consecutive day in a row on Wednesday. The BSE Sensex fell more than 100 points while the Nifty50 managed to hold on to 24,800 levels.

Sectorally, buying was seen in banks, auto and consumer durables while selling was seen in metal, power, IT and infra stocks.

Stocks that hit fresh 52-week high include names like AU Small Finance Bank which rose nearly 3%, Max Financial Services pared gains to close flat but with a negative bias and Redington was up 0.4% on Wednesday.

We spoke to an analyst on how one should look at these stocks on the next trading day, entirely from an educational point of view:
Analyst: Priyanka Limaye, CA, CMT

The stock has approached a strong technical resistance zone between Rs 795–₹815. If it sustains above Rs 815, it could witness a sharp up move of 12–15%.

The RSI is already in the super bullish zone, and other technical indicators are also positive.

For this stock, Rs 1,700 acts as a strong technical hurdle. If it manages to break and sustain above this level, an additional 8–10% up move is possible.

Strong support is currently placed around Rs 1,450. The RSI is already in the super bullish zone.

This stock faces a strong technical hurdle in the Rs 310–320 range. If it manages to clear this zone, a 12–15% up move is quite possible in the short to medium term. Currently, the RSI is lagging, and other technical indicators are mixed.


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