Potential breakout stocks to watch: Oberoi Realty and Tata Steel

Oberoi Realty and Tata Steel are identified as upside potential stocks based on technical analysis. Both stocks have displayed promising technical setups, including price volume action and the potential to bounce back and break out. Currently trading at Rs 1,383.80 and Rs 145.65 respectively, their price structures align with positive signals from technical indicators like RSI and ADX, suggesting a breakout scenario likely in the coming time.

Oberoi Realty Limited

Daily chart of Oberoi Realty Ltd

On the daily chart, Oberoi Realty is presently showing a rapid ascent from near support; the stock price is moving after forming a double bottom. The stock price may resume its strong momentum-up in the coming trading sessions if it manages to cross and close above the neckline zone marked on the chart with the support of decent volume compared to the current volume. Volumes have been rising for the last 4 days.

Those considering a possible trade in Oberoi Realty might purchase the stock at the present price with a stop loss of Rs 1,330 on a closing basis and aim to capitalize above its 52-week high.

The stock price is currently trading above its support level, suggesting it is likely about to turn short-term bullish once more. The stock appears quite neutral when one looks at the Relative Strength Index, which is now trading at 56.16. The ADX of 14 indicates the present state of price momentum, which is moving with low momentum.

In the event of a retracement, it is essential to monitor key support levels, particularly at Rs 1,275. The minor upper resistance is the 52-week high, and if the stock closes above the 52-week high consecutively, then it may consistently trade above current levels.

Oberoi Realty Ltd. is a real estate development company.

Tata Steel Limited

Daily chart of Tata Steel Ltd

Tata Steel’s current performance is indicated by a favorable technical setup. The shares of the company are now trading at Rs 145.65 and may bounce back from the 50-day EMA. The stock price is currently trading slightly above the 50-day EMA.

Those interested in a possible trade in Tata Steel could purchase the stock at the present price, setting a stop loss below the 50-day EMA at a trendline of Rs 140, and aim for a target price higher than the stock’s 52-week high.

The stock is trading above its all-important moving averages, and it is expected to find support near the trendline. The Relative Strength Index is trading near neutral levels at 49.66. This implies that there may be potential for an increase in stock price strength. The ADX, which is now around 17, shows low momentum and directional strength.

The level at Rs 140 serves as a crucial indicator for corrective movement, and the overall market structure favors traders if the stock crosses and trades above the 52-week high.

Tata Steel is engaged in the manufacturing and sale of steel.

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.