Weekly stock breakouts 12th August 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 stock price breakouts indicate greater investor interest and signs of further upward movement in the short to midterm.

This week saw the Nifty 50 close 1.73% higher than the previous week.

The Nifty has risen continuously for the last four weeks and covered more than 1600 points upwards indicating strength. The charts indicate that Nifty 50 has possibly touched its lowest point in FY23 at 15200 levels in June and headed higher to close above levels of 18100 by the end of FY23.

Many stocks have resumed their upward journey along with the Nifty 50 and have risen by a more than 10% this week. Some of these stocks gave a price volume stock breakout with a potential to head higher in the next few weeks. Based on a propriety analytics, we have identified stocks that have given favorable stock breakouts on the week ending 12^th August 2022.

Sr No	Date	Company	CMP 12 Aug 2022	Target	Time
1	12-Aug-22	Bharat Forge	790.2	870	4-5 weeks
2	12-Aug-22	Home First Finance	932.1	1010	4-5 weeks
3	12-Aug-22	KSB Pumps	1712.3	1880	4-5 weeks
4	12-Aug-22	Tata Chemicals	1118.9	1300	4-5 weeks

Bharat Forge

Sector: General Industries

Bharat Forge is India’s leading auto component exporter with strong engineering, technological competencies in forging and metallurgy. Its products find application in PV (passenger vehicles), CV (commercial vehicles), oil & gas, construction & mining, power, defence, etc. in domestic as well as export markets.

During Q1FY23, the company recorded highest ever export revenue driven by PV segment. The CV orders remained strong with a year backlog in US Class 7 & Class 8 trucks having almost a year booking.

Bharat Forge stock breakout of resistance level of 740 with 2.2 X higher volumes and is likely to reach levels of 870 in the short term.

Home First Finance

Sector: Housing Finance

Home First Finance is a technology driven affordable housing finance company with pan India presence. It offers loans to first time home buyers with predominant focus on salaried individuals having income lesser Rs 50k per month. 90% of book comprise of housing loans with average ticket size of Rs 10.7 lakhs

The company’s network covers 93 branches in 102 districts across 13 states and Union territories. The company’s majority customers are from the states of Gujarat, Maharashtra and Tamil Nadu, accounting for 35.0%, 15.7% and 12.6% respectively, of the loans disbursed in Q1FY23.

Home First Finance has delivered investors more than 2X returns over the past two years. The stock confirms resuming its uptrend and the fresh stock breakouts above previous resistance level of 860 will drive to higher levels.

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KSB Pumps

Sector: Industrial Machinery

KSB Ltd (also known as KSB Pumps) is the Indian arm of the multinational KSB. It is a pump manufacturer which make pumps for applications in agriculture, oil and gas, petrochemicals and power plants including nuclear power plants.

Exports account for 16.6% of the company’s total sales for H1CY23. The company has also seen new orders from NPCIL (Nuclear Power Corporation of India) worth Rs 500 crore, IOC (Indian Oil Corporation) worth Rs 200 crore  and BHEL worth Rs 25 crore in H1CY23.

KSB Pumps continues its uptrend after breaking out of a four month upward trending consolidation with 3.2 X higher volumes. The stock has been in an uptrend for the past two years except for one dip and resumed its upward journey and given a new stock breakouts last Friday.

Tata Chemicals

Sector: Commodity Chemicals

Tata Chemicals is among the top five players in the global soda ash market. Under basic chemicals, it offers soda ash, sodium bicarbonate, cement, salt, marine chemicals and crushed refined soda. Speciality chemical consists of solution towards agro chemical through Rallis and other specialty solutions such as nutritional products.

The company reported a good set of numbers in Q1FY23 with robust soda ash demand across all geographies and applications. It delivered strong revenue, EBITDA growth amidst a favourable market environment and a challenging cost situation. Consolidated Revenue grew by 34% and EBITDA grew by 69% YoY in Q1FY23.

Tata Chemicals traded in a narrow range of 200 points between 800 -1050 levels, with these forming the support and resistance levels respectively. After ten months, the stock had a breakout above the resistance level of 1050 and is headed towards levels of 1300 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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