Breakout Stocks: How to trade HUDCO, Sonata and Swan Energy on Friday

Following Fed Chair Jerome Powell's comments indicating potential rate cuts in 2024, Sensex and Nifty on Thursday hit fresh lifetime highs with technical charts indicating more upside ahead.

All key sectors participated in the rally wherein IT, banking and realty were among the top gainers.

Nifty Midcap and Smallcap indices also registered fresh all-time highs. Advancing shares outnumbered the declining shares for the second day in a row as the advance decline ratio stood at 1.21 levels on BSE.


We have collated a list of three stocks that either hit a fresh 52-week high, or an all-time high or saw a volume or a price breakout. We spoke to analysts on how one should look at these stocks the next trading day entirely from an educational point of view:

Analyst: Riyank Arora, Technical Analyst, Mehta Equities
HUDCO : 111.35
The stock has experienced a strong breakout above its July 2017 highs, reaching a new all-time high of 119.55 and touching the 20% upper circuit limit in Thursday's trading session. With the trading volumes nearly eight times the average volume over the past 10 days, and the stock consistently making higher highs, it appears poised for an upward move towards 140 and 150, with a stop loss set around 95.

Sonata Software : 776.30
The stock has reached its overhead resistance zone of 775 to 800. With the stock trading at its all-time highs and the overall structure being positive, it is expected that we might see some consolidation between 760 and 800 before the start of a fresh upward move. A trigger above 800 would be a sign of strong momentum picking up again in the counter towards 850 and 875, with a firm stop-loss placed at the 700 mark.

Swan Energy : 501.35
The stock has experienced a strong breakout above its recent all-time highs of 487.00, breaking out of its range with a sharp pickup in volumes. The calculated price target is around 575 and 600 for Swan Energy, with a strict stop-loss placed at the 465 mark. With the stock continuously moving in an uptrend and volumes being almost 2 times the average traded volume over the past 10 days, it looks like a good setup on the charts.

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