Breakout stocks of the day: State Bank of India and Indian Railway Finance Corporation

With price volume support, the State Bank of India and Indian Railway Finance Corp are strong bullish potential stocks. The stock prices have displayed promising technical scenarios and bounced back from support where both presently trading at Rs 746.85 and Rs 155.10, 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.

State Bank of India Ltd

Daily chart of State Bank of India Ltd

State Bank of India is currently displaying strong bullish momentum on the daily chart, characterised by a notable breakout of a narrow range. This breakout is supported by the good volume observed today and on up days, highlighting active buyer participation with substantial daily volume today.

Wednesday’s trading session began at Rs 705 and reached a peak of Rs 748. After opening the stock has successfully surged to the all-time high on the chart, indicating a potential continuation sign of the long-term uptrend.

The current stock price is trading at an all-time 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 show momentum with strong long candles, it may set the State Bank of India up for a stronger positive trend shift, and the accumulated volume suggests further growth shortly. The breakout from the earlier base, emphasises the stock’s effort to establish new highs.

On the RSI chart, the relative strength index is about to cross the level of 80 with gaining strength, and ADX trading at 30 indicates strong directional strength, favouring volatile movements on either side. In the event of a retracement, it is essential to monitor key support levels, particularly at Rs 695. 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.

State Bank of India engages in the provision of public sector banking, and financial services statutory body.

Indian Railway Finance Corporation

Daily chart of Time Indian Railway Finance Corp Ltd

Indian Railway Finance Corporation’s current stock performance is characterised by a promising technical setup, trading at Rs 155.10 and has the potential to continue its strong uptrend, accompanied by a significant increase in trading volume yesterday. Currently, the stock price is on the verge of breaking the bullish engulfing candlestick pattern and acting on the same trajectory to move higher.

Starting at Rs 153 on Wednesday, the stock reached an intraday high of Rs 157. The correction was notable as the profit booking was intact since the huge surge of popular railways stock, suggesting a likely break of the bullish trend if the price manages to bounce from moving averages.

The bounce back has occurred with the opening of yesterday’s candle above the high of the candle, indicating bullish momentum. After reaching its low, the stock may witness a bounce back again in the day trading sessions, following sustained levels near the 50-day EMA. The current market action is supported by a surge in volume on up days and dry volume on down days for the stock.

The relative strength index (RSI) recently traded in a bullish range at 54.83 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 42, indicates super strong directional strength. The level of Rs 120 serves as a crucial indicator for corrective movements after, and the overall market structure favours traders if the stock consistently trades above major moving averages.

Indian Railway Finance Corp. Ltd. engages in the business of borrowing funds from the finance markets to finance the acquisition of assets which are leased out to the Indian Railways as finance leases.

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.