Breakout stocks of the day: Aditya Birla Capital and BSE

With price volume support, Aditya Birla Capital and BSE are strong bullish breakout potential stocks. The stock prices have displayed promising technical scenarios and bounced back from support where both presently trading at Rs 187.85 and Rs 2490.55. The price structure aligns with positive signals from technical indicators such as RSI, ADX, and other key metrics, reinforcing the likelihood of continued upward momentum.

Aditya Birla Capital Ltd

Weekly chart of Aditya Birla Capital Ltd

Stock of Aditya Birla Capital is currently displaying sustained bullish momentum on the daily chart, characterised by a notable breakout of base. This breakout is supported by the good volume observed today and on up days, highlighting active buyer participation with substantial daily volume today.

Friday’s trading session began at Rs 188 and reached a peak of Rs 181. After crossing the 10-week EMA the stock has successfully broken the upper trendline of the chart, indicating a potential continuation sign of the long-term uptrend.

The current stock price is trading above its prior high, 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 break the 52-week high with a strong green candle, it may set Aditya Birla Capital up for a stronger positive trend shift, and the accumulated volume suggests further growth soon. The bounce from the near-lower support, emphasises the stock’s effort to establish new highs.

On the RSI chart, the relative strength index is about to cross the level of 60 with gaining strength, and ADX trading at 22 indicates good directional strength, favouring a few sideways movements. In the event of a retracement, it is essential to monitor key support levels at Rs 160, particularly at a 50-day EMA. The minor upper resistance is uncertain, and the overall favourable structure is maintained as the stock consistently trades above crucial moving averages, affirming a sustained long-term upward trend.

Aditya Birla Capital Ltd engages in the provision of financial services.

BSE Ltd

Daily chart of BSE Ltd

BSE’s current stock performance is characterised by a promising technical setup, trading at Rs 2,490 and has the potential to continue its strong uptrend, accompanied by a significant increase in trading volume a few days ago. Currently, the stock price is on the verge of breaking a consolidation and acting on the same trajectory to move higher.

Starting at Rs 2,522 on Friday, the BSE stock reached an intraday high of Rs 2,571. The last upsurge is notable as it followed three days of a strong uptrend, suggesting a likely start of the bullish trend if the price manages to close above new higher highs.

The breakout will occur with a closing of the day candle above the all-time high, indicating bullish momentum. After reaching its 52-week high, the stock may witness a rapid ascent in the day trading sessions, following sustained levels near Rs 2,600. The current market action is supported by a surge in price and dry volume as it is a down day for the stock.

The relative strength index (RSI) recently traded in a bullish range at 61.92, suggesting the potential for a significant upward movement in the stock price is still there, particularly as it continues to trade above this level. The ADX, currently at 17, indicates lower directional strength. The 10-day Exponential Moving Average (EMA) serves as a crucial indicator for larger corrective movements after a breakout, and the overall market structure favours traders if the stock consistently trades above major moving averages.

BSE Ltd operates a securities exchange, which engages in the provision of a platform for trading in equity, currencies, debt instruments, derivatives, and mutual funds.

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.