Weekly Breakouts 22nd July 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 interpreting charts and identifying the trends and price movements. Growing volumes with price breakouts indicate greater investor interest and signs of further upward movement in the short to midterm.

This week saw the Nifty 50 close 4.2% higher than the previous week. Many stocks have followed the trend of the Nifty and have risen by a few percent this week. Some of 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 22nd July 2022.

Balaji Amines

Sector: Specialty Chemicals

Balaji Amines is a specialty chemicals company, is a leading manufacturer of aliphatic amines & speciality chemicals in India, specialized in manufacturing of methyl amines, ethyl amines, derivatives of amines and other specialty chemicals.

The company will be commissioning a new DMC (Dimethyl Carbonate) & PG (Propylene Glycol) plant as part of a greenfield project (Unit IV) which makes them the sole manufacturer in India of these products. In addition to serving the domestic market, they expect to explore opportunities in these compounds.

The stock has broken out of a consolidation of nine months. This week it closed above the resistance level of 3000 and is likely to touch levels of 3820 in the short term.

BEL (Bharat Electronics Ltd)

Sector: Defence

Bharat Electronics (BEL) is a state owned, leading aerospace and defence electronics company that primarily manufactures advance electronics products. These include multi-product, diverse product range including radar, missile systems, electronic warfare & avionics, anti-submarine warfare, electro-optics, homeland security, civilian products, etc.

The stock is in an uptrend for the last two years and has given a breakout after crossing previous resistance level of 250 with 2.7 X volumes indicating a continuation of the uptrend.

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Caplin Point Laboratories

Sector: Pharmaceuticals

Caplin Point Laboratories is a pharmaceutical company that is export oriented and derives around 90% of its income from lesser regulated markets in Latin America and Africa. It has recently been increasing its exports to the US, with a focus on launching its own branded generic medicines.

The company is also expanding its production facilities with a new unit for oncology expected to be commissioned in early FY24. Another is an API unit, where the company is looking at a buyout of an existing unit and another unit specifically to cater to the US exports.

The chart of Caplin Points indicates that the trend is likely to change with the stock crossing the long term resistance line and it could begin a fresh uptrend from here on.

Kajaria Ceramics

Sector: Building Materials

Kajaria Ceramics is the largest manufacturer of ceramic and vitrified tiles in India. The company sells its products in India, and it also exports them to other countries.

It expanded its tiles capacity by about 20% in Q1FY23 (~12 MSM) and it is acquiring a 4.8 MSM plant in Telangana to expand its reach in the south. It also expects FY23 exports from India to grow by around 30%.

After being in an uptrend for more than a year, the stock took a breather consolidating in a narrow price band over the last six months. This week the price surged beyond the higher level of the consolidation with 3.3 x higher volumes and is likely to head to levels or 1290 in the near term.

 

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

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