Breakout stocks of the day: Zydus Lifesciences and Texmaco Infrastructure & Holdings

Zydus Lifesciences and Bhansali Engineering Polymers are strong positive breakout candidates with price volume support. The stock price is currently trading at Rs 688 and Rs 116, respectively has witnessed a formation of rectangle and symmetric triangle chart patterns. The RSI, ADX and other parameters of technical analysis are in sync with the breakout.

Zydus Lifesciences Ltd

Weekly chart of Zydus Lifesciences Ltd 

Zydus Lifesciences’ stock is trading with a strong breakout candle, witnessing a multi-year high breakout. On the day of breakout, the daily volume spiked to its maximum in six months.

On Tuesday stock witnessed a gap-up opening at Rs 684, jumped to its day high of Rs 694, and touched its day low of Rs 671. The scrip has been in an uptrend for a long time, as it was in pattern creation.

Zydus Lifescience has formed a cup-and-handle chart pattern with its breakout to continue the bullish trend. The stock price is trading at its all-time high and may continue to trade higher in the coming time as the setup looks perfect. The stock price crossed its 20-day EMA, suggesting that the stock may continue to be in a bullish trade. The stock price also witnessed a price volume breakout on Monday, which is supporting this breakout to trade higher.

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 cooled down to 33 levels, but it is above 25, which shows strong directional strength. The stock price is breaking the 50-day EMA as a breakout rather than taking support and face resistance each time. This can be a great sign for traders to trade in Zydus Lifescience using this 50-day EMA.

During any corrective moves, the major support level to watch for is between Rs 670 and Rs 570. 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 returns of 67.82% in one year.

Zydus Lifesciences Ltd is engaged in the discovery, development, and manufacture of pharmaceutical products under the Zydus brand.

Texmaco Infrastructure & Holdings Ltd

Daily chart of Texmaco Infrastructure & Holdings Ltd 

Shares of Texmaco Infrastructure & Holdings are trading with a strong green candle and given a breakout of a range with a volume spike.

The stock witnessed a slight gap-up opening at Rs 106, jumped to its day high of Rs 118, and touched its day low of Rs 105. The stock has been in range for 1 month before breakout.

Texmaco Infrastructure & Holdings has shown a range breakout to start a new bullish trend. The stock price is trading at its all-time high and may consolidate for a while to cool down this breakout as the day candle faces little pressure from sellers. It continued to trade at its all-time high with high momentum and volume spiked. The price also witnessed a price volume breakout on Tuesday, making this breakout strong with a spurt in volume more than six times.

The relative strength index also entered the 65–80 range, suggesting the stock price may start a new strong uptrend ahead. The ADX indicator line is trading at a level of 33, but it is above 25, which shows strong directional strength. The stock price respects the moving average levels as it bounced from the 200-day EMA the same month.

During any corrective moves, the major support level to watch for is Rs 111. 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 impressive returns of 92% in a year.

Texmaco Infrastructure & Holdings Ltd engages in real estate, hydropower generation, and job work businesses in India.

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.