Technical Analysis: Technical Breakout Stocks: How to trade IRFC, Macrotech Developers and Firstsource Solutions on Monday?

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The Indian market closed higher for the fourth consecutive day in a row on Friday. The S&P BSE Sensex rose more than 800 points while the Nifty50 closed just a shade below 21,900 levels.

Sectorally, buying was seen in IT, realty, oil & gas and public sector while selling was seen in healthcare, utilities and auto stocks.

Stocks that were in focus include names like IRFC which was up more than 6%, Macrotech Developers gained nearly 7% and Firstsource Solutions rallied more than 10% on Friday.

We have collated a list of three stocks that either hit a fresh 52-week high, or an all-time high or saw a volume or a price breakout.

We spoke to an analyst on how one should look at these stocks the next trading day entirely from an educational point of view:

Analyst: Mitesh Karwa, Research Analyst Bonanza Portfolio

IRFC is seen to be breaking out of a resistance zone on the daily timeframe with a bullish candlestick, above average volumes and making a new all-time high.Buying is recommended on dips of around 106-107 with a stop loss of 99 and targets of 118 as the stock is trading above all its important EMAs.

Macrotech Developers Ltd:
Macrotech Developers Ltd (Lodha) is seen to be breaking out of an upwards sloping parallel channel pattern on the weekly timeframe with a bullish candlestick and above average volumes.

Additionally, the stock is seen to be trading above all its important EMAs which is why buying is recommended on dips towards 1150 with a stop loss of 1040 and a target of Rs 1350.

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Firstsource Solutions Ltd:
Firstsource Solution Ltd is seen to be breaking out of a rounding bottom formation on the monthly timeframe with above average volumes.

The breakout will be confirmed after monthly closing of the stock above 203. Entry can be taken in the stock after the monthly closing of January with a stop loss below 189 and a target of 250.


(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times.)

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