Stocks with Technical Breakouts: How to Trade Sona BLW, Intellect Design and PB Fintech on Friday

Indian markets bounced back on the expiration of the February monthly F&O series after falling over 1% in the previous session, tracking positive signals.

S&P BSE Sensex rose nearly 200 points and Nifty50 closed higher but failed to cross the 22,000 mark on Thursday.

“The near-term texture of the market remains directionless. In the current uptrend, the 20-day SMA (simple moving average) or 22,000/72,500 will act as the trend setter level,” said Shrikant Chouhan, head of equity research at Kotak Securities.

By sector, there was buying pressure in power, public sector, metals and capital goods stocks, while there was some selling pressure in healthcare stocks.

We’ve compiled a list of three stocks that recorded 52-week highs, all-time highs, volume or price breakouts.

We spoke with analysts about how we should view these stocks in the coming trading days, purely from an educational standpoint.Analyst Priyanka Limaye (CA, CMT) said:

Sona Blw Precision Forgings

The stock has formed a rounding bottom pattern on the weekly chart and is yet to break out of the pattern. Thursday’s high of 718.85 stands as a very important resistance level. Staying above this could lead to a retest of the all-time high of 839.90.

Intellect Design Arena

The stock price has been rising, supported by the trend line, for several months. Now, on a shorter time frame, the stock has broken a small rounding bottom pattern and is heading towards 1,280-1,300 with a stop loss at 1,050.

PB Fintech

The stock is consistently making higher highs and lower lows on the medium-term chart.

A rounding bottom pattern is forming on a weekly basis. As long as the stock remains above 1,075, it is expected to move towards 1,470.

(Disclaimer: Expert recommendations, suggestions, views and opinions are their own and do not represent the views of The Economic Times.)

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