Breakout stocks of the day: Mahindra & Mahindra and Torrent Power

Mahindra & Mahindra and Torrent Power are identified as potential bullish stocks based on technical analysis. Both stocks have displayed promising technical patterns, including price volume support and a bounce back from support levels. Currently trading at Rs 1,768.85 and Rs 1,215.35, respectively, their price structures align with positive signals from technical indicators like RSI and ADX, suggesting continued upward momentum

Mahindra & Mahindra Ltd

Daily chart of Mahindra & Mahindra Ltd

Mahindra & Mahindra is currently displaying strong bullish momentum on the daily chart, the stock price has broken its all-time high but is still in the rising channel. If M&M stock manages to close above the upper trendline by support of the good volume, the stock price may start a strong momentum move for several trading sessions. Today’s volume highlights active buyer participation with substantial daily volume today.

Thursday’s trading session began at Rs 1,681 and reached a peak of Rs 1,784. 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 stock up for a stronger positive trend shift, and the accumulated volume suggests further growth soon. The bounce from the trendline, emphasises the stock’s effort to establish new highs.

On the RSI chart, the relative strength index is trading in the bullish zone with gaining strength, and ADX trading at 14 indicates low directional strength, favouring very small movements on either side. In the event of a retracement, it is essential to monitor key support levels, particularly at lower trendline. The minor upper resistance is at the upper trendline of the channel, and if the stock closes above the upper resistance line, then the stock may consistently trade above current levels, affirming a sustained long-term upward trend.

Mahindra & Mahindra Ltd is a holding company, which engages in the manufacturing of automotive vehicles.

Torrent Power Ltd

Daily chart of Torrent Power Ltd

Torrent Power’s current stock performance is characterised by a promising technical setup, trading at Rs 1,215.35 and has the potential to continue its strong uptrend, accompanied by a significant increase in trading volume today. Currently, the stock price is on the verge of breakout of all*time high by bouncing from the previous ascending triangle breakout level.

Starting at Rs 1,134 on Thursday, the Torrent Power stock reached an intraday high of Rs 1,236. The correction was notable as the stock price tested the previous breakout level to confirm the chart pattern breakout.

The bounce back has occurred with yesterday’s candle touching the 20-day EMA and the prior high level, indicating buying activity at the same level. After reaching its low, the stock witnessed a bounce back in the day trading sessions, following sustained levels near the 20-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 71.91 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 46, indicates super strong directional strength. The level of Rs 1,050 serves as a crucial indicator for corrective movements afterwards, and the overall market structure favours traders if the stock consistently trades above major moving averages.

Torrent Power Ltd engages in the business of power generation, transmission, and distribution of electricity.

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.