Breakout Stocks: How are BEL, GE Power and Tata Motors looking on charts? Ashish Kyal decodes

The Indian market closed in the green for the second consecutive day on Monday, tracking positive global cues. The S&P BSE Sensex rose over 200 points, while the Nifty50 closed just a shade below 18,600 levels.

Sectorally, buying was seen in auto, capital goods, and utilities. Some selloff was visible in FMCG and IT stocks.

Stocks that were in focus include names like Bharat Electronics, up over 2% to hit a fresh 52-week high, GE Power India gained more than 18%, and Tata Motors closed with gains of 2% to hit a fresh 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 a trader about how one should look at these stocks the next trading day entirely from an educational point of view:

Analyst: Ashish Kyal, CMT, Founder, Waves Strategy Advisors, SEBI registered Research Analyst

Tata Motors: MACD shows a positive crossover
Tata Motors recently gave a break above its previous swing high, near Rs 537 levels. Also, MACD shows a positive crossover.
So, overall, signs are giving us hints that further buying can continue to be seen. One can use the buy-on-dips approach to ride the trend with the targets of Rs 580 as long as Rs 515 holds on the downside.


Bharat Electronics: Rounding Bottom pattern
BEL is currently trading at a 52-week high. A rounding bottom pattern has been formed on the weekly chart. Any weekly close above 115 levels will confirm the breakout of the said pattern.

Along with this KST (Know Sure Thing) has turned above the signal line and also trading above the zero line suggesting that good momentum can continue to be seen with the targets of 130 and by keeping a stop loss of 110 levels on the downside.


GE Power: Breakout from a downward-sloping channel

GE Power has finally given a breakout of the downward-sloping channel. At the time of the breakout, huge volume was seen acting as a confirmation.

If it manages to trade above the 148 level, then we can expect the move toward 163 as long as 130 holds on the downside.

Analyst Disclaimer: All of the above observations are shared for educational purposes only. Views mentioned are of the Analyst.

ETMarkets.com

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