Breakout Stocks: How to trade Jubilant FoodWorks and Finolex Industries on Monday

The Indian market closed in the green on Friday, tracking positive global cues. The BSE Sensex rose by more than 250 points, while the Nifty50 closed above the 23,800 levels.

Sector-wise, buying was seen in banks, FMCG, healthcare, and auto, while selling was seen in energy, power, oil & gas, and metals.

Stocks that were in focus included names like Jubilant FoodWorks, which hit a fresh 52-week high, while a volume spike was seen in Finolex Industries, which closed with gains of more than 6% on Friday.


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

Analyst: Virat Jagad, Technical Analyst at Bonanza

Jubilant Foodworks: Buy

Jubilant FoodWorks Ltd has established a strong resistance zone at 700 on the daily chart, where sustained buying activity has propelled the stock upward. The recent breakout from a Cup and Handle formation signifies renewed bullish momentum.

Furthermore, the stock trading above key moving averages confirms the prevailing uptrend. The positive crossover of the DMI+ over the DMI- signals strengthening bullish momentum, while the ADX trending above the 30 mark highlights the underlying strength of the current rally.

These technical indicators collectively suggest a favorable outlook, with the potential for further upside toward the 775 level, supported by the 680 zone.

Finolex Industries: Avoid

Finolex Industries Ltd remains in a falling wedge pattern, indicating flat to negative sentiment.

Selling pressure at higher levels has resulted in a candlestick with a long upper wick, reflecting bearish dominance. The stock trades below key EMAs, all trending downward, confirming bearish control.

However, the RSI pulling back from the oversold zone suggests a potential shift toward bullish momentum. This confluence of signals indicates that while the stock remains under bearish influence, a phase of consolidation may be on the horizon.

A decisive breakout above the wedge pattern would be critical for confirming any potential reversal.

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