Potential breakout stocks to watch: Kalyan Jewellers India and Ipca Laboratories

Kalyan Jewellers India and Ipca Laboratories are identified as upside potential stocks based on technical analysis. Both stocks have displayed promising technical setups, including price volume action and the potential to bounce back and breakout. Currently trading at Rs 378.25 and Rs 1,174.15 respectively, their price structures align with positive signals from technical indicators like RSI and ADX, suggesting a breakout scenario likely in the coming time.

Kalyan Jewellers India Ltd

Daily chart of Kalyan Jewellers India Ltd

On the daily chart, Kalyan Jewellers India is presently showing a reversing sign from near support; the stock price is moving up after taking support of the trendline. The stock price may resume its strong momentum-up in the coming trading sessions if it manages to cross and close above the high of March 13, 2024, with the support of decent volume compared to the current volume. Volumes are dry right now and likely to rise soon.

Those considering a possible trade-in Kalyan Jewellers India might purchase the stock at the present price with a stop loss of Rs 350 on a closing basis and aim to capitalize above its 52-week high.

The stock price is currently trading above its support level, suggesting it is likely about to turn short-term bullish once more. The stock appears quite neutral when one looks at the Relative Strength Index, which is now trading at 49.10. The ADX of 24 indicates the present state of price momentum, which is moving with good momentum.

In the event of a retracement, it is essential to monitor key support levels, particularly at Rs 350. The minor upper resistance is the 52-week high, and if the stock closes above the 52-week high consecutively, then it may consistently trade above current levels.

Kalyan Jewellers India Ltd. owns and operates jewellery stores.

Ipca Laboratories Ltd

Daily chart of Ipca Laboratories Ltd

Ipca Laboratories’ current performance is indicated by a favorable technical setup. The shares of the company are now trading at Rs 1,174 and may bounce back from the support of 1,130. The stock price is currently trading slightly above the 50-day EMA.

Those interested in a possible trade-in Ipca Laboratories could purchase the stock at the present price, setting a stop loss below the 50-day EMA at trendline Rs 1,130, and aim for a target price higher than the stock’s 52-week high.

The stock is trading above its all-important moving averages, and it is expected to find support near the 50-day EMA. The Relative Strength Index is trading near neutral levels at 49.78. This implies that there may be potential for an increase in stock price strength. The ADX, which is now around 16, shows low momentum and directional strength.

The level at Rs 1,130 and Rs 1,040 serves as a crucial indicator for corrective movement, and the overall market structure favors traders if the stock crosses and trades above the 52-week high.

Ipca Laboratories Ltd. engages in the manufacturing, marketing, research, and development of pharmaceutical products.

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.