Breakout stocks of the day: Tata Motors and Adani Total Gas

Tata Motors and Adani Total Gas are identified as potential bullish stocks based on technical analysis. Both stocks have displayed promising technical patterns, including price volume support and a potential to breakout. Currently trading at Rs 961.90 and Rs 1,064.80, respectively, their price structures align with positive signals from technical indicators like RSI and ADX, suggesting continued upward momentum

Tata Motors Ltd 

Daily chart of Tata Motors Ltd

Tata Motors Ltd is currently displaying strong bullish momentum on the daily chart at the time of the breakout; the stock price trading with momentum with a sustenance sign today. If the stock manages to close above the 52-week high with the support of the good volume, the stock price may start the strong momentum move in the next coming trading sessions again. Today’s volume highlights active buyer participation with above-average daily volume today.

Tuesday’s trading session began at Rs 936 and reached a peak of Rs 965. After opening the stock has successfully surged towards the day high on the chart, indicating a potential continuation sign of the long-term uptrend.

The current stock price is trading with a bullish green candle probably as a sign of strength, 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 as it is bouncing from the 20-day EMA as well, it may set the stock up for a stronger positive trend shift, and the accumulated volume suggests further growth soon.

On the RSI chart, the relative strength index is trading in the bullish zone with gaining strength, and ADX trading at 43 indicates super strong directional strength, favouring normal movements on either side. In the event of a retracement, it is essential to monitor key support levels, particularly at Rs 1,920. The minor upper resistance is uncertain, and if the stock witnesses back-to-back closing above the 52-week high, then it may consistently trade above current levels.

Tata Motors Ltd is an automobile manufacturer with a portfolio that includes a range of cars, utility vehicles, trucks, buses, and defence vehicles.

Adani Total Gas Ltd 

Daily chart Adani Total Gas Ltd

Adani Total Gas’ current stock performance is characterised by a promising technical setup, trading at Rs 1,046.80 and has the potential to continue its strong uptrend, accompanied by a significant increase in trading yesterday. Currently, the stock price declining after the breakout of consolidation of the base.

Starting at Rs 1,089 on Tuesday, the stock reached an intraday high of Rs 1,096. The current decline of the day was notable as the volume also picked up.

The stock has given the breakout and is trading above the 20-day EMA, indicating buying activity, at the same level volume is picking up this week with price movement. After reaching its all-time high the stock may witness a strong uptrend and the same is anticipated in coming trading sessions, following sustained levels above 1,100. The current market action is supported by a surge in volume on up days and dry volume on a down day for the stock.

The relative strength index (RSI) recently traded in a bullish range at 57.15 suggesting the potential for a significant upward movement in the stock price as the RSI trades into the neutral region. The ADX (Daily), currently at 26, indicates high directional strength. The level at Rs 975 serves as a crucial indicator for corrective movements after, and the overall market structure favours traders if the stock consistently trades above major moving averages.

Adani Total Gas Ltd engages in the provision of gas distribution.

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.