Weekly Breakouts 10th June 2022

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 closing 2.31% lower than last week, putting a halt to the uptrend for previous three weeks. Even while the index moved lower, some stocks have given a positive breakout higher. Based on a software programme, we have identified stocks that have given a ‘breakout’ on the week ending 10^th June 2022.

Gallantt Metal

Gallantt Metal is part of Gallantt Group of Companies and is engaged in the production of iron steel and power primarily in India. The company operates in two segments, Steel and Power. Their products include sponge iron M.S. billets re-rolled products (TMT bars) and M.S. bars.

On the charts, it has given a breakout of a one year range and is headed higher in the medium term.

OIL India

Oil India Limited is the second largest Indian-government owned hydrocarbon explorer and producer. It is under the ownership of Ministry of Petroleum and Natural Gas, Government of India. The rising crude prices are an advantage to the company and the charts seem to have factored it in.

The chart is in an uptrend since a year and a half and this breakout with surging volumes is likely push it to higher levels.

Time Technoplast

Time Technoplast is a leading manufacturer of polymer-based packaging and composite products with 34 production facilities in 11 countries. It has established products (industrial packaging, PE pipe, battery others) which contribute about 80% to its revenues while value added product category (IBC, composite cylinders, mox films) contributes the rest.

After a consolidation in a range for a year, the stock has begun an uptrend confirmed by the formation of higher highs and higher lows and the latest breakout.

Welspun Enterprises

Welspun Enterprises, part of the Welspun Group, is an operating Company as well as a holding company. It has developed and operates PPP projects in various sectors like roads, water, and urban infrastructure. In the highway sector alone, the Company has successfully completed six BOT (Toll) Road projects with a total length of over 500 km.

The rising focus by the government on infrastructure seems to be built into the charts with the stock showing signs of beginning an uptrend after a downtrend for the past year.