Breakout stocks of the day: Mahindra Lifespace Developers and Electrosteel Castings

With price volume support, Mahindra Lifespace Developers and Electrosteel Castings are strong bullish breakout potential. The stock price has displayed an ascending triangle and rectangle chart pattern breakout, respectively, and is presently trading at Rs 573 and Rs 119. The breakout corresponds to the RSI, ADX, and other technical analysis indicators.

Mahindra Lifespace Developers Ltd

Daily chart of Mahindra Lifespace Developers Ltd 

Shares of Mahindra Lifespace Developers are currently trading with a strong bullish candle and a robust ascending triangle breakout. Buyers were hunting this stock as the setup was clean, today’s daily volume was more than enough for this large-cap to sustain this breakout.

The stock opened at Rs 549 on Thursday, traded at an intraday low of Rs 548, then surged to a day high of Rs 575. It has been in pattern formation for the last 3 months and has broken over upper resistance, indicating a trend continuation.

The price of Mahindra Lifespace Developers is trading at its prior highs with impetus after a breakout with volume increase. With its breakout, it is poised to continue the positive trend. The bunch of stock volume accumulated from a few days back is more than enough to sustain the price momentum, and it is expected to grow further soon because the setup appears to be great. The stock price has bounced from its 50-day moving average, indicating that it is striving to set new highs. Today, the stock price had an ascending triangle breakout, allowing the stock price to trade higher.

The relative strength index has now entered the 65-80 range, indicating that the stock price may rise further. The ADX is tuning upward from the level of 19, which indicates the directional strength will be higher as the stock starts the uptrend.

In the case of a lower-side retracement, the major support level to watch for during any corrective swings is Rs 555. The stock price has the upper resistance at Rs 600 as the target. The overall structure remains favourable for traders, as the stock continues to move above all of its important moving averages, indicating a long-term upward trend.

Mahindra Lifespace Developers Ltd engages in the development of residential projects and infrastructure developments, such as business cities, parks and clusters.

Electrosteel Castings Ltd

Dailly chart of Electrosteel Castings Ltd  

Electrosteel Castings’ stock is trading with a green daily candle and has given a breakout of the rectangle chart pattern with a volume spike today.

On Thursday, the stock began at Rs 114, then made an intraday high of Rs 123. The stock has been in a consolidation for the last 5 weeks.

Electrosteel Castings is about to confirm the breakout after the closure of the day candle, which would continue the bullish trend. The stock is trading near its all-time high and may show a quick jump after today’s sustenance. The stock price saw a price volume breakout today, which was accompanied by a volume rise bigger than the ordinary trading day.

The relative strength index has also into the 65-80 range, indicating that the stock price may begin to rise sharply in the near future as it crosses the level of 70. The ADX indicator line is rising from the bottom and is now trading at 19, indicating that directional strength is on the lower side.

The 50-day EMA is the fundamental support level to watch for during any corrective movements. The overall structure remains favourable for traders, with the stock trading above all of its major moving averages.

Electrosteel Castings Ltd is involved in the manufacture and supply of ductile iron pipes, ductile iron fittings, and cast iron.

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.