Breakout Stocks: How ICICI Securities, Natco Pharma and SJVN are looking on charts for Tuesday

Stocks that were in focus include names like ICICI Securities, which was up 10%, Natco Pharma, which closed with gains of nearly 3%, and SJVN that closed 6.5% higher to hit a fresh 52-week high on Monday.

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

Analyst: Kush Ghodasara, CMT, SEBI RA : INH000002137

ICICI Securities: Avoid
The stock has breached the 200-day moving average on the upside after 3 months and it has sustained the same for the last 4 days, which is a positive sign.

Currently, the stock has a support at Rs 532 while the target is placed at 700+ on a positional basis. The risk-to-reward ratio is not favourable and one should avoid taking any new position but can hold any existing position.

ETMarkets.com

Natco Pharma: MACD ‘buy’ signal
The stock has been consolidating in the range of Rs 620-640 for the last 2 expiries. But it has managed to break out in the new contract and has sustained above the neckline of Rs 640 for the past 2 days, which is a sign of reversal.

Secondly, MACD has given a positive internal crossover to confirm the breakout. The stock can be bought for the short term with a stop loss at Rs 640 and a target of Rs 785.

ETMarkets.com

SJVN: Breakout from rounding bottom
The stock is generally traded with less volume, but the recent up move has been supported by rising volumes. It has breached a rounding bottom formation on the upside. The neckline of the pattern was placed at Rs 42. We need to wait for another closing above Rs 42, which will open gates for Rs 50+ targets and a stop loss can be placed at Rs 39 then.

ETMarkets.com

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