Weekly stock breakouts 19th August 2022

Technical charts give a sense of what is the likely future direction of any stock. One of the most common ways of identifying stocks with potential upside is interpreting charts and identifying the trends and price movements. The charts are assumed to capture the news and events and factor these in the price. 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 0.34% higher than the previous week. The Nifty has risen continuously for the last five weeks and covered more than 1600 points upwards indicating strength. However, it may correct during the next two or three weeks after the run up in last two months. This well eventually help as periodic corrections are considered healthy for the markets.

Many stocks have resumed their upward journey along with the Nifty 50 and have risen by a more than 10% this week. This week we list only 3 stocks with price volume breakout having potential to head higher in the next few weeks. Based on a propriety analytics, we have identified stocks that have given favourable stock breakouts on the week ending 19^th August 2022.

 

Sr No	Date	Company	CMP 12 Aug 2022	Target	Time
1	19-Aug-22	Adani Ports	871.8	960.0	4-5 weeks
2	19-Aug-22	Apollo Tyres	260.1	315.0	4-5 weeks
3	19-Aug-22	IRCTC	735.1	810.0	4-5 weeks

Adani Ports and SEZ

Sector: Marine port and services

Adani Ports and Special Economic Zone is the largest commercial port operator in India with 25% share of port cargo movement in India. The company began with a single port dealing in a single commodity is now a leading integrated logistics platform.

The company has begun construction of 4.5 million sq ft of warehousing capacity at Mundra, Moraiya, Ranoli and Palwal. Adani Ports acquired 100% stake in Ocean Sparkle Ltd, a leading third party marine services provider with 94 seaworthy vessels.

Adani ports breaks out of resistance level of 850 with 2.2 X higher volumes after a year of consolidation.

Apollo Tyres

Sector: Tyres and rubber products

Apollo Tyres is a leading tyre manufacturer, with operations in India & Europe with an installed capacity of 7.9 lakh MTPA. From the total revenues, 67% are from India and remaining 32% from Europe

The company remains optimistic about the demand outlook over the medium to long term specially in PV space in European region whereas, demand in Indian CV space remained sluggish due to muted OEM sales in Q1FY23. The management expects demand in Q2FY22 to be sluggish given the seasonality with monsoon effecting demand in the replacement segment.

However, pickup is expected from CV OEMs in H2FY23 amid greater infra spend by government. Apollo Tyres breaks out of the resistance level of 250 after one and a half years with 5.3X higher volumes.

IRCTC

Sector: Travel Support Services

IRCTC (Indian Railway Catering and Tourism Corporation) is an Indian public sector undertaking that provides ticketing, catering, and tourism services for the Indian Railway

The company is expected to benefit from increased license income in catering as it returns to pre covid levels. In addition, with increased acceptance of online ticket booking, internet ticketing remains a growing segment. Further, tourism is also expected to improve led by increase in travelling.

The company’s focus on e-catering initiatives and increasing revenues from advertisement & license fees bodes well for long term profitability. IRCTC breaks out of a ten month downtrend with 3.3 X higher volumes and is likely to begin a new uptrend.

 

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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