Breakout stocks of the day: Jubilant Pharmova and HDFC Bank

Jubilant Pharmova and HDFC Bank are the strong positive breakout candidates with price volume support. Both the scrips are trading at Rs 515 and Rs 1,733, respectively, and have witnessed the formation of a rectangle and rounding bottom chart pattern. The RSI, ADX, and other parameters of technical analysis are in sync with the breakout.

Jubilant Pharmova Ltd

Weekly chart of Jubilant Pharmova Ltd 

Jubilant Pharma’s stock is currently displaying an upward movement, represented by a green candle (at the time of writing). This positive trend is anticipated to persist, further affirming the breakout from a chart pattern known as a rectangle.

The stock witnessed a slight gap-down opening at Rs 507, jumped to its day high of Rs 530, and touched its day low of Rs 500. The stock had been in a downtrend for a long time before the pattern formation.

The stock price is trading at its 52-week high and may continue a strong uptrend following this breakout. Candle suggests the buyers are dominating the sellers. The stock continues to trade at its prior highs with high momentum as volumes increase. It also witnessed a price volume breakout on Friday.

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 39, which shows strong directional strength to trend higher. The price is also respecting the moving average levels as it bounced from the same a few weeks ago.

During any corrective moves, the major support level to watch for is Rs 500. The overall structure remains favourable for traders, as the stock continues to trade above all its important moving averages, indicating a sustained upward trend.

It has yielded returns of 27.27% in one year. Investors or traders can consider this a great opportunity to enter and take advantage of the early benefits of the coming uptrend.

Jubilant Pharmova Ltd is engaged in the provision of basic organic chemicals.

HDFC Bank Ltd

Daily chart of HDFC Bank Ltd.

Shares of HDFC Bank are depicting a breakout of a pattern called rounding bottom. The stock witnessed a gap-up opening at Rs 1,660, jumped to its day high of Rs 1,664, and touched its day low of Rs 1,650. It has been in a downtrend since pattern formation.

The stock price is trading above its 200-day EMA and may consolidate and break out soon. The volume spiked on Friday, but the price won’t be able to break the resistance and will try to attempt the breakout soon.

The relative strength index is trading in the 65–80 range, suggesting an uptrend. The ADX indicator line is above the 36 mark, suggesting strong directional strength.

During any corrective moves, the major support level to watch for is the 200-day EMA. The overall structure remains favourable for traders, as the stock continues to trade above all its important moving averages.

The scrip has given unbelievable multibagger returns of 29,928.99% in a decade.

HDFC Bank Ltd is in the provision of banking and financial services, including commercial banking and treasury operations.

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.