Potential breakout stocks to watch: Oracle Financial Services Software and Indian Oil Corp

Oracle Financial Services Software and Indian Oil Corp are identified as upside potential stocks based on technical analysis. Both stocks have displayed promising technical setups, including price volume action before and a potential to breakout. Currently trading at Rs 7,903.10 and Rs 177.50 respectively, their price structures align with positive signals from technical indicators like RSI and ADX, breakout scenario in the coming time.

Oracle Financial Services Software Ltd

Daily chart of Oracle Financial Services Software. Ltd

Oracle Financial Services Software is currently displaying range trading on the daily chart. The stock price is trading with the bullish engulfing candle with a low formed on February 29. If the scrip manages to cross and close above the Rs 531 level with the support of good volume compared to down days volume, the stock price may start the strong momentum-up move in the coming trading sessions again. Currently, volume is dry, and probably the traders are looking for a confirmed direction for trade.

Those looking for a potential trade in the OFSS can buy the stock at the current level. Maintain a stop loss of Rs 7,455 and look for a target near or above the 52-week high of the stock.

Currently, the stock price is trading above the 20-day EMA probably turning short-term bullish again, the previous uptrend of the stock price has logged 78.48% of gains to the traders in a month, witnessing a breakout from the consolidation to the high of Rs 8,189.

Looking at the Relative Strength Index trading at 69, it suggests the bullish strength to gain maximum in the coming time as it has shifted its trading range. ADX is at 60, which is on the higher side, reflecting the current scenario of price momentum that is likely to pick up soon with the breakout of the 52-week high level.

In the event of a retracement, it is essential to monitor key support levels, particularly at Rs 7,181. The minor upper resistance is 52-week high, and if the stock starts back-to-back closes above 52-week high, then the stock may consistently trade above current levels.

Oracle Financial Services Software Ltd is a holding company, which engages in the development, sale, and marketing of computer software and computer systems.

Indian Oil Corp. Ltd

Daily chart Indian Oil Corp Ltd

Indian Oil Corp’s current stock performance is characterised by a promising technical setup, trading at Rs 177.50, and has the potential to breakout at level Rs 176 to start a new uptrend with the help of positive volume. Currently, the stock price is in a lower ATR, trading just above the 20-day EMA. Previously, we saw large volumes traded on February 29. Currently, the volumes are on the lower side, but traders are active compared to previous sessions.

Those who are looking for a potential trade in the IOC can buy the stock at the current level with a stop loss of Rs 164. Look for the target above the 52-week high.

The stock is trading above both 20-day, likely to take support in future at the same levels as it has shown in historical price data. The earlier stock price has given a breakout of a 52-week high gaining 30.09% of gains. The Relative Strength Index currently trading at 57.44, declining from an overbought zone and bounce back from 50. This suggests the potential for a significant upward movement in the stock price. The ADX, currently at 28, indicates lowering directional strength and momentum.

The level at Rs 152 and 50-day EMA serves as a crucial indicator for corrective movements and the overall market structure favours traders if the stock crosses and trades above the Rs 179 level.

Indian Oil Corp. Ltd is a holding company, which engages in refining, pipeline transportation, and marketing of petroleum 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.