Breakout stocks to watch: KPIT Technologies and Strides Pharma Science

With price volume support, KPIT Technologies and Strides Pharma Science are strong bullish breakout potential stocks. The stock prices have displayed promising technical scenarios and volume support where both presently trading at Rs 1706.80 and Rs 754. The price structure aligns with positive signals from technical indicators such as RSI, ADX, and other key metrics, reinforcing the likelihood of continued upward momentum.

KPIT Technologies Ltd

Weekly chart of KPIT Technologies Ltd

KPIT Technologies is currently displaying sustained bullish momentum on the daily chart, characterised by a notable breakout of a 52-week high. This breakout is supported by the good volume observed on up days, highlighting active buyer participation with substantial daily volume.

Monday’s trading session began at Rs 1727 and reached a peak of Rs 1764. After crossing a lower high the stock has successfully broken the 52-week of the chart, indicating a potential continuation sign of the long-term uptrend.

The current stock price is trading above its prior high, driven by increased volume during a particular trading session, indicating that investors are interested in up moves. In the coming time, the stock price may retrace to the breakout level and bounce back with a strong green candle, it may set KPIT Technologies up for a stronger positive trend shift, and the accumulated volume suggests further growth shortly. The bounce from the near-lower support, emphasises the stock’s effort to establish new highs.

On the RSI chart, the relative strength index is about to cross the level of 70 with gaining strength, and ADX trading at 22 indicates good directional strength, favouring a few sideways movements. In the event of a retracement, it is essential to monitor key support levels at Rs 1643 and particularly at 50-day EMA. The minor upper resistance is uncertain, and the overall favourable structure is maintained as the stock consistently trades above crucial moving averages, affirming a sustained long-term upward trend.

KPIT Technologies Ltd engages in the provision of software for the automobile and mobility industry.

Strides Pharma Science Ltd

Daily chart of Strides Pharma Science Ltd

Strides Pharma Science’s current stock performance is characterised by a promising technical setup, trading at Rs 754 and has the potential to continue its strong uptrend, accompanied by a significant increase in trading volume a few days ago. Currently, the stock price is on the verge of breaking a 52-week high acting on the same trajectory to move higher.

Starting at Rs 714 on Friday, the stock reached an intraday high of Rs 758. The last upsurge is notable as they followed an uptrend, suggesting a likely start of the bullish trend if the price manages to close above new higher highs.

The breakout will occur with a closing of the day candle above the all-time high, indicating bullish momentum. After reaching its 52-week high, the stock may witness a rapid ascent in the day trading sessions, following sustained levels near Rs 750. The current market action is supported by a surge in price and dry volume as it is a down day for the stock.

The relative strength index (RSI) recently traded in a bullish range at 68.01, suggesting the potential for a significant upward movement in the stock price is still there, particularly as it continues to trade above this level. The ADX, currently at 38, indicates higher directional strength. The 20-day Exponential Moving Average (EMA) serves as a crucial indicator for larger corrective movements after the breakout, and the overall market structure favours traders if the stock consistently trades above major moving averages.

Strides Pharma Science Ltd. engages in the development, manufacture and distribution of Internet Protocol-led generics and bio-pharmaceutical products.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.