The Indian benchmark indices surged to record highs yet again on December 14, riding on a global rally that after the US Federal Reserve signalled the conclusion of its rate tightening cycle and hinted a rate cut in 2024.
All sectoral indices were trading in the green in the afternoon, with the information technology and realty sectors leading the gains.
At 2.44 pm, the Sensex was up 958.16 points, or 1.38 percent, at 70,543 and the Nifty was up 268.2 points, or 1.28 percent at 21,195.
Here are four breakout stocks exhibiting strong technical momentum that can be considered for the short term:
1. Bank of Baroda: Buy | LTP: Rs 222 | Stop-Loss: Rs 214 | Target: Rs 232-240
Sudeep Shah, Head of Technicals and Derivative Research at SBI Securities, said, "Yesterday, the stock witnessed a horizontal trendline breakout on the daily scale, supported by robust volume. A significant bullish candle formation on the breakout day strengthened the breakout's momentum." The stock's Mansfield Relative Strength surged above the zero line for the first time since November 6, indicating outperformance compared to the Nifty 500 index. The confluence of various technical and derivative factors signals a robust bullish momentum in the stock, he said.
Shah suggests accumulating the state-owned lender in the Rs 222-220 range, with a stop loss of Rs 214 and upside targets at Rs 232 and Rs 240 in the short term.
2. Bajaj Finserve: Buy | LTP: Rs 1729 | Stop-Loss: Rs 1670 | Target: Rs 1820-1870
Bajaj Finserve broke out of consolidation on the daily chart, finding support at a critical moving average, Rupak De, a senior technical analyst at LKP Securities said. "Critical moving averages are in a bullish crossover, and in the short term, the stock is expected to sustain its upward momentum, possibly reaching levels around 1,820/1,870," De said.
The stock will decline if it slips below the support of Rs 1,670, he said .
3. IndusInd Bank: Buy | LTP: Rs 1547 | Stop-Loss: Rs 1500 | Target: Rs 1700
IndusInd Bank has broken out of consolidation on the daily chart, indicating a rise in optimism. "The RSI (relative strength index) is in bullish crossover, and in the short term, the stock is expected to sustain its upward momentum, possibly reaching levels around 1,700," De said.
Support is at Rs 1,500 and a drop below this level, can lead to decline in the stock.
4. ICICI Bank: Buy | LTP: Rs 1035 | Stop-Loss: Rs 980
"Among frontline stocks, ICICI Bank, after a decent spurt from the significant 200-period MA of 930 zone, has indicated a clear breakout above the 1,020 level following a short consolidation witnessed in the last six-seven sessions," Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher.
It is set for the next upside targets of Rs 1,110 and Rs 1,240 in the coming days. Recently, it indicated a falling trendline breakout above 980 zones to improve the bias, and further rise is expected, Koothupalakkal said.
Koothupalakkal anticipates further rise and recommends buying and accumulating the stock but said a decisive breach below 980 would weaken the bias and lead to further declines.
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