Breakout Stocks: How to trade ITI and Jubilant FoodWorks on Tuesday?

The Indian market closed deep in the red on Monday, tracking weak global cues, weak quarterly updates from the banking sector, and concerns over new virus (HMPV) cases reported in India.

The BSE Sensex plunged more than 1200 points while the Nifty50 closed below 23700 levels.

Sectorally, selling was seen in oil & gas, metal, power and utilities.


Stocks that touched fresh highs include ITI Ltd which rose more than 19%, and Jubilant FoodWorks closed with gains of nearly 1% on Monday.

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

Analyst: Rajat Kulshrestha of My Mudra Fincorp Pvt Ltd

ITI

The stock has been in good momentum since the end of October, creating higher highs and lower lows. It has delivered returns of 155% since October end and 45% in the last 7 days alone.

Using the Fibo tool, from where the trend has started, we are getting a golden support zone at 0.618 to 0.5 level of 305-333 level. and Strong Resistance were, 640 Rs and 757.90 Rs price level.

If the stock manages to close above the 549.65 price level, then we can expect the price to go to the 640 and 757 price levels.

The stock is experiencing good buying pressure and has crossed even 50MA in the Volumes chart.

Jubilant FoodWorks:

In the weekly time frame, the stock has been moving in a Channel Pattern and Last week it gave a Channel pattern Breakout with the big bullish green candle with a 7% upside move of 51 Rs.

Rs 793 and Rs 889.50 price level is acting as a partial resistance for this stock. and the 544-578 price level is acting as a strong support as per the FIBO Levels.

This stock has delivered good returns of 43.55% in the last 1 year and 33.60% in the last 6 months.

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