Breakout stocks of the day: Hind Rectifiers and Samvardhana Motherson International

Hind Rectifiers and Samvardhana Motherson International 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 680.05 and Rs 1,064.80 respectively, their price structures align with positive signals from technical indicators like RSI and ADX, suggesting continued upward momentum

Hind Rectifiers Ltd 

Weekly chart of Hind Rectifiers Ltd

Hind Rectifiers 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 cross 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.

Wednesday’s trading session began at Rs 628 and reached a peak of Rs 680 locked in the 10% upper circuit. After opening the stock has successfully surged towards the day high on the chart, indicating a potential starting 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 and the week, 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 16 indicates super low directional strength, favouring low momentum in either side. In the event of a retracement, it is essential to monitor key support levels, particularly at 20-day EMA. The minor upper resistance is uncertain, and if the stock closes back-to-back above the 52-week high, then it may consistently trade above current levels.

Hind Rectifiers Ltd is involved in the development, manufacture and design of power semiconductors, power electronic equipment and railway traction equipment.

Samvardhana Motherson International Ltd 

Daily chart Samvardhana Motherson International Ltd

Samvardhana Motherson International’s current stock performance is characterised by a promising technical setup, trading at Rs 118.80 and has the potential to continue its strong uptrend, accompanied by a significant increase in trading yesterday. Currently, the stock price picking up after breakout of consolidation.

Starting at Rs 116 on Wednesday, the stock reached an intraday high of Rs 119. The current upsurge 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. 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 120. The current market action is supported by a surge in volume on up days and dry volume on down days for the stock.

The relative strength index (RSI) recently traded in a bullish range at 63.31 suggesting the potential for a significant upward movement in the stock price as the RSI trades into the mild bullish region. The ADX (Daily), currently at 13, indicates very low directional strength. The level at Rs 112 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.

Samvardhana Motherson International Ltd is a holding company, which engages in the manufacture and sale of wire harnesses, components, and wires to automotive original equipment manufacturers.

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.