Weekly Breakouts 08th July 2022
Technical charts give a sense of what is the likely future direction of any stock. The charts are assumed to capture the news and events and factor these in the price. One of the most common ways of identifying stocks with potential upside is reading charts and identifying the trends and price movements. Growing volumes with price breakout indicate greater investor interest and signs of further upward movement in the short to midterm.
This week saw the Nifty 50 end the week gain almost 3% over the previous week, indicating likely higher movement for the next week also. Some stocks have clearly demonstrated this week that they have an upside from here on.?These stocks gave a price volume breakout with a potential to head higher in the next few weeks. Based on a propriety analytics, we have identified stocks that have given favourable breakouts on the week ending 08th July 2022.
ABB India
ABB India undertakes manufactures heavy engineering & industrial equipment and undertakes engineering and construction projects. The company operates mainly through the Robotics & Motion, Electrification products and Industrial Automation segments.
ABB has set up a smart factory building in Nashik to supply power distribution products globally to over 120 countries and across sectors in India. On similar lines, it will add capacity and automate other manufacturing plants on the back of continued healthy cash position of Rs 2,710 crore and increasing global orders.
The stock is in an uptrend since almost two years and has given a breakout with a 14% gain last week breaking out of a six-month price consolidation. It has potential to reach a price of Rs 2980 per share in the near term.
Astec Lifesciences
Astec Lifesciences is a part of the Godrej Group. The company is primarily in production of active ingredients and intermediates for the agrochemicals segment. The company operates in the space of technical as well as bulk sales. It also has a contract manufacturing business. They are having manufacturing facilities located at two locations in Maharashtra India comprising of three units viz. one unit at Dombivli Maharashtra and two units at Mahad Maharashtra (Unit 1 and Unit 2).
The stock is in an uptrend since a year and has given a breakout with 3.5 X volumes indicating a possible higher movement in the near future. It has a potential to reach levels of 2280 in the short term.
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Siemens
Siemens Ltd. is a 75% subsidiary of Siemens AG, Germany, which has presence in more than 200 countries. Siemens is a technology company focused on industry, infrastructure, transport as well as transmission and generation of electrical power.
Siemens has 22 factories located across the country, 8 Centres of Competence, 11 R&D centres and a nationwide sales and service network. The factories in India are mainly in the business of manufacturing steam turbines, motors, switchgears, generators, transformers, relay and smart grid systems etc.
On the charts, the stock is continuing its uptrend and broken previous resistance level of 2,500 and is potentially headed towards levels of 3,000.
Tube Investments of India
Tube Investment of India (TII) is a flagship company of Murugappa group. It is one of the leading product manufactures for major industries such as Automotive, Railway, Construction, Mining, etc. Its entry into 3W electric manufacturing with an outlay of Rs 200 crore will also mark the group’s foray into complete automobile manufacturing. The technology and the prototype of EV three-wheeler has already been developed and will be a combination of in house as well as design support from a Korean company.
The stock is trading in a wide range for the last eight months and has broken the previous resistance of 1900 and is has the potential to head higher to 2300 in the short term.
Note – This channel is for educational and training purpose only & any stock mentioned here should not be taken as a tip/recommendation/advice
Research done by:?Ketan Sonalkar,?SEBI Rgn No INA000011255