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 close around 1% lower than the previous week. Some stocks have 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 15th July 2022.
| Sr No | Date | Company | CMP 15 July 2022 | Target | Time |
| 1 | 15-Jul-22 | Eicher Motors | 3034 | 3300 | 3-4 weeks |
| 2 | 15-Jul-22 | Ganesh Housing | 317.1 | 365 | 3-4 weeks |
| 3 | 15-Jul-22 | Gujarat Fluorochemicals | 3181 | 3500 | 3-4 weeks |
| 4 | 15-Jul-22 | PI Ind | 2953 | 3300 | 3-4 weeks |
Eicher Motors
Eicher Motors manufactures motorcycles and accessories. The company owns the iconic Royal Enfield brand also popularly known as the Bullet motorcycle. It also has a joint venture with AB Volvo – Volvo Eicher Commercial Vehicles (VECV), which manufactures trucks and buses.
Eicher Motors reported a 43%increase in total sales including exports at 61,407 units in June 2022. The company had sold a total of 43,048 units in the year-ago period, Royal Enfield said in a statement. Domestic sales in June 2022 were at 50,265 units as against 35,815 units in June 2021, a growth of 40 %.
The stock has been trading in a range for a year and a half. This week it closed above the resistance level of 3000. Though the move this week was not very large, it is anticipated that a much stronger up move would happen over the next two-three weeks.
Ganesh Housing
Ganesh Housing is a real estate company, engaged in developing residential and commercial projects in and around Ahmedabad. Till date, the company, along with its various special purpose vehicles (SPVs), has developed 22 million square feet of projects with 85 per cent of all the development in the residential sector.
Though a small cap company, its last two year historic stock performance is much better than larger listed peers in the real estate sector.
The stock is in an uptrend for the last two years and has given a breakout with 4 X volumes indicating a possible higher movement soon. It has a potential to reach levels of 365 in the short term.
Gujarat Fluorochemicals
Gujarat Fluorochemicals is a specialty chemicals company. It manufactures chemical compounds and Fluoropolymers for agrochemical and pharmaceutical industries. It is also the largest manufacturer of HCFC22, a refrigerant that its supplies to customers globally.
The company’s planned capex towards expanding its capacities for fluoropolymers, new age products and battery chemicals is progressing as per the schedule. It intends to commission 3 new plants by Q1FY23 which got delayed due to supply chain issue in Q4FY22.
On the charts, the stock is continuing its uptrend and broken previous resistance level of 3000 and is potentially headed towards levels of 3,500.
PI Industries
PI Industries manufactures plant protection & specialty plant nutrient products and solutions under its agrochemicals business. It is also one of India’s leading custom synthesis (CSM) companies engaged in providing contract research and contract manufacturing services to global research organizations.
Triggers for growing interest in the stock include the management guidance of 18-20% YoY for FY23 in both exports and domestic segment, launch of 5-6 new products in the domestic market and the likely acquisition of a pharmaceutical plant.
The stock was in a downtrend for the last ten months and has given an indication of reversing the trend with the breakout this week. The stock is likely to head to levels of 3300 in the next few weeks.
About the Author
Ketan Sonalkar (SEBI Rgn No INA000011255)
Ketan Sonalkar is a certified SEBI registered investment advisor and head of research at Univest. He is one of the finest financial trainers, with a track record of having trained more than 2000 people in offline and online models. He serves as a consultant advisor to leading fintech and financial data firms. He has over 15 years of working experience in the finance field. He runs Advisory Services for Direct Equities and Personal Finance Transformation.
Note – This channel is for educational and training purpose only & any stock mentioned here should not be taken as a tip/recommendation/advice
You may also like: Q1FY23 expectations from different sectors
