Breakout stocks of the day: TAJGVK Hotels & Resorts and Aditya Birla Fashion & Retail

With price volume support, TAJGVK Hotels & Resorts and Aditya Birla Fashion & Retail are strong bullish breakout potential stocks. The stock prices have displayed basing breakout and pullback, and both presently trading at Rs 257 and Rs 235. The breakout and pullback align with positive signals from technical indicators such as RSI, ADX, and other key metrics, reinforcing the likelihood of continued upward momentum.

TAJGVK Hotels & Resorts

Daily chart of TAJGVK Hotels & Resorts Ltd

TAJGVK Hotels & Resorts is currently displaying a sustained bullish momentum on the daily chart, characterised by a notable breakout from a compelling basing chart pattern. This breakout is supported by the strong volume observed in today’s trade highlighting active buyer participation with substantial daily volume.

Wednesday’s trading session initiated at Rs 243 and reached a peak of Rs 263. After twenty weeks of basing the structure, the stock has successfully breached the upper resistance of the pattern, indicating a potential long-term trend continuation.

The current stock price soon exceeds its 52-week high, driven by increased volume during the pre-breakout rally. This breakout sets TAJGVK Hotels & Resorts up for a positive trend shift, and the accumulated volume suggests further growth soon. The bounce from the 200-EMA acted as support emphasising the stock’s effort to establish new highs.

On the daily RSI chart, the relative strength index is trading in the 65-80 range with a similar pattern formation, and a robust ADX at 31 indicates strong directional strength, favouring a continued trend. In the event of a retracement, it is essential to monitor key support levels, particularly at Rs 240. The minor upper resistance is at its 52-week high for the stock, and the overall favourable structure is maintained as the stock consistently trades above crucial moving averages, affirming a sustained long-term upward trend.

TAJGVK Hotels & Resorts Ltd. engages in the business of owning, operating, and managing hotels, palaces, and resorts.

Aditya Birla Fashion & Retail Ltd 

Daily chart of Aditya Birla Fashion & Retail Ltd

Aditya Birla Fashion & Retail’s current stock performance is characterised by a green candle facing a little selling pressure and has bounced back from a lower trendline of the channel, accompanied by a significant increase in trading volume. Currently, the stock price is bouncing back from the trendline and prior low level as support. Starting at Rs 223 on Wednesday, the stock reached an intraday high of Rs 237. This pullback is notable as it follows a few months of an uptrend, suggesting a likely continuation of the bullish trend if the price manages to close above an all-time high.

The stock price is rising with the channel and crossing the long-term 200-day EMA today again as it may start an uptrend soon for a longer timeframe The current market action is supported by a surge in price volume, surpassing the typical trading day volume.

The relative strength index (RSI) recently entered the 65-80 range, suggesting the potential for a significant upward movement in the stock price, particularly as it continues to trade within this range. The ADX, currently at 15, indicates very low directional strength with sideways movement. The upper trendline of the channel crucial resistance and target level during larger upsurge movements, and the overall market structure favours traders, with the stock consistently trading above major moving averages.

Aditya Birla Fashion & Retail Ltd. engages in fashion retail business.

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.