Breakout stocks of the day: Infosys and Bajaj Finserv Ltd

Infosys and Bajaj FinServ are the strong positive breakout candidates with price volume support. The stock price is currently trading at Rs 1,588 and Rs 1,733, respectively, and has witnessed the formation of an ascending triangle chart pattern. The RSI, ADX, and other parameters of technical analysis are in sync with the breakout.

Infosys Ltd

Daily chart of Infosys Ltd 

Infosys’ stock is trading with a marubozu candlestick (at the time of writing) as the day progresses to continue the breakout of a chart pattern called an ascending triangle.

The stock witnessed a gap-up opening at Rs 1,523, jumped to its day high of Rs 1,588, and touched its day low of Rs 1,521. The stock had been in a downtrend for a long time before the formation of a pattern.

Infosys has formed an ascending chart pattern with its breakout to start a new bullish trend. The stock price is trading at its 52-week high and may continue a strong uptrend following this breakout, as the marubozu candlestick suggests the buyers are fully dominating the sellers. The stock continued to trade at its prior highs with high momentum as volumes increased. The stock price also witnessed a price volume breakout on Friday, making this breakout strong.

The relative strength index also entered the 65–80 range, suggesting the stock price may continue a strong uptrend ahead. The ADX indicator line is above 20, which shows weak directional strength, but still, it looks like it will rise in the coming time. The stock price is also respecting the moving average levels as it bounced from the same a few days ago.

During any corrective moves, the major support level to watch for is Rs 1,523. The overall structure remains favourable for traders, as the stock continues to trade above all its important moving averages, indicating a sustained upward trend.

The stock has yielded returns of 3.57% in one year. Investors or traders can consider this a great opportunity to enter this stock to take advantage of the early benefits of the coming uptrend.

Infosys Ltd is a digital services and consulting company, which engages in the provision of end-to-end business solutions.

Bajaj Finserv Ltd

Daily chart of Bajaj Finserv Ltd 

Bajaj Finserv’s stock is trading with a small red candle as the day progresses to continue the chart, suggesting the stock has sustained the breakout of a chart pattern called an ascending triangle.

The stock witnessed a gap-up opening at Rs 1,738, jumped to its day high of Rs 1,741, and touched its day low of Rs 1,718. The stock has been in a long-term consolidation range.

The Bajaj Finserv has formed an ascending triangle chart pattern, and the stock price sustained the breakout to continue the bullish trend. The stock price is trading at its 52-week high and may consolidate more and trade higher. The volumes are not promising till now, but looking at the volume patterns, they may soon spike to start a strong rally.

The relative strength index is trading in the 65–80 range, suggesting the stock price may continue to uptrend. The ADX indicator line is above the 20 mark, suggesting normal directional strength. The stock price is also respecting the moving average levels, as it bounced from them a few weeks ago.

During any corrective moves, the major support level to watch for is Rs 1,672. The overall structure remains favourable for traders, as the stock continues to trade above all its important moving averages, indicating a sustained upward trend.

The stock has given multibagger returns of 1,268.31% in a decade.

Bajaj Finserv Ltd. is a holding company, which engages in the generation of electric power.

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.