Breakout Stocks: How should investors trade Ujjivan Small Finance, Aurobindo Pharma and RIL on Wednesday

The Indian market closed in the green for the fourth consecutive day on Tuesday. The S&P BSE Sensex rose over 100 points, while the Nifty50 closed above 18600 levels.

Sectorally, buying was seen in banks, IT, and FMCG stocks, while selling was seen in metal, oil & gas, and telecom scrips.

Stocks that were in focus include names like Ujjivan Small Finance Bank, which was up more than 7%, Aurobindo Pharma closed with gains of over 6% to hit a fresh 52-week high, and RIL closed flat, but witnessed a bullish MACD crossover on daily charts.

We have collated a list of three stocks that either saw a volume or a price breakout. We spoke to various experts on how one should trade these stocks the next day:

Expert: Jaskirat Singh Gujral, Founder Financial Adda

Ujjivan Small Finance Bank: Breakout from a Flag pattern
This stock is trading at its 52-week high and has also formed a Flag Pattern on the daily time frame. On Tuesday, we also got a breakout from a Flag pattern on the daily time frame along with good volumes, which shows that this stock will go up in the coming months.


If we analyze this stock in a weekly time frame it shows the stock is ready to complete the rounding bottom pattern, again a positive sign!


Aurobindo Pharma: Resistance is seen at Rs 730
The stock is trading at around Rs 650 levels. It has a big resistance at around Rs 730, and once it crosses (Breakout) the resistance with good volumes then only we can consider this stock for a long-side trade.


Reliance Industries: Critical resistance at Rs 2750
Reliance Industries on a daily time frame is ready to complete the rounding bottom pattern, which shows the stock is going for 2600 and 2700 levels.

The MACD crossover also shows that the RIL stock is now bullish. Once it crosses the Rs 2,750 level, it will open gates for the stock to head to Rs 2800 and then Rs 3000.


Expert Disclaimer: Not a SEBI registered advisor, please consult your financial advisor before investing any money. All of the above observations are shared for educational purposes.

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