Breakout stocks of the day: Apar Industries and Rain Industries

With price volume support, Apar Industries and Rain Industries are strong bullish breakout potential stocks. The stock prices have displayed channel bounce back and supply-demand zone formation, and both presently trading at Rs 5,769 and Rs 185. The breakout and pullback align with positive signals from technical indicators such as RSI, ADX, and other key metrics, reinforcing the likelihood of continued upward momentum.

Apar Industries

Daily chart of Apar Industries

Apar Industries is currently displaying a sustained bullish momentum on the daily chart, characterised by a notable bounce back from a rising channel lower trendline. This pullback is supported by the good volume observed in today’s trade highlighting active buyer participation with substantial daily volume.

Monday’s trading session initiated at Rs 5,469 and reached a peak of Rs 5,788. After thirty days of the trough, the stock has successfully breached the 50-day EMA by crossing it, indicating a potential start of the short-term uptrend.

The current stock price is trading above its 50-day EMA, driven by increased volume during particular trading sessions indicating the change of hands and re-accumulation phase. In case of an upper trendline breakout, it may set Apar industries up for a positive trend shift, and the accumulated volume suggests further growth soon. The bounce from the near-lower resistance acted as support emphasising the stock’s effort to establish new highs.

On the daily RSI chart, the relative strength index is crossing the level of 50 range with similar pattern formation, and aADX at 13 indicates very low directional strength, favouring a continued sideways trend or slower trend. In the event of a retracement, it is essential to monitor key support levels, particularly at lower trendlines. The minor upper resistance is at the upper trendline for the stock, and the overall favourable structure is maintained as the stock consistently trades above crucial moving averages, affirming a sustained long-term upward trend.

Apar Industries Ltd engages in the business of electrical and metallurgical engineering.

Rain Industries Ltd

Weekly chart of Rain Industries

Rain Industries’ current stock performance is characterized by green trading at supply and has the potential to break out from 18 months of consolidation, accompanied by a significant increase in trading volume. Currently, the stock price is bouncing back from the demand zone and crossing the long-term moving average of 200 days.

Starting at Rs 179 on Monday, the stock reached an intraday high of Rs 188. This upsurge is notable as it follows a few days of an uptrend, suggesting a likely continuation of the bullish trend if the price manages to close above the supply zone.

Confirmation of the breakout will occur with a closing of the day candle, indicating a bullish momentum. After reaching its 52-week high, the stock may witness a rapid ascent in the next trading sessions following above sustained levels near Rs 200. The current market action is supported by a surge in price volume, surpassing the typical trading day volume.

The relative strength index (RSI) recently entered the 65-80 range, suggesting the potential for a significant upward movement in the stock price, particularly as it continues to trade within this range. The ADX, currently at 25 (daily), indicates a good directional strength with smaller sideways movement. The 200-day Exponential Moving Average (EMA) serves as a crucial support level during larger corrective movements after the breakout, and the overall market structure favours traders, with the stock consistently trading above major moving averages.

Rain Industries Ltd is in the production of calcined petroleum coke and coal tar pitch.

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.