High Volume Breakouts: 4 Midcaps May Jump Up to 30%
The Indian stock market has been witnessing a Bull Run in recent times, with various stocks making significant gains. Among these, four midcaps – Strides Pharma, Zuari Industries, Gateway Distriparks, and Apcotex Industries – have recently broken out with high volume, suggesting a strong bullish momentum. According to SEBI-registered analyst Vinay Taparia, these stocks may rally by 25-30% in the coming months.
In this blog post, we will analyze the price action and technical indicators of these four stocks and discuss the reasons behind the bullish momentum.
Strides Pharma (STAR)
Strides Pharma, a leading pharmaceutical company, has been on a strong uptrend since March 2022. The stock broke out above the resistance level of Rs 2300 on Tuesday, with a strong volume of 2.3 million shares traded. The Relative Strength Index (RSI) is currently at 62, indicating that the stock is in an overbought zone, but the price action suggests that the stock is likely to continue its upward momentum.
The stock has been forming a bullish pennant pattern, which is a bullish continuation pattern. The pattern suggests that the stock is likely to break out above the resistance level of Rs 2500, which could lead to a rally of 25-30%.
Zuari Industries (ZUARIIND)
Zuari Industries, a leading fertilizer and pesticides company, has been on a strong uptrend since January 2022. The stock broke out above the resistance level of Rs 140 on Tuesday, with a strong volume of 1.1 million shares traded. The RSI is currently at 58, indicating that the stock is in an overbought zone, but the price action suggests that the stock is likely to continue its upward momentum.
The stock has been forming a bullish wedge pattern, which is a bullish reversal pattern. The pattern suggests that the stock is likely to break out above the resistance level of Rs 160, which could lead to a rally of 25-30%.
Gateway Distriparks (GATEWAY)
Gateway Distriparks, a leading logistics company, has been on a strong uptrend since October 2021. The stock broke out above the resistance level of Rs 230 on Tuesday, with a strong volume of 1.5 million shares traded. The RSI is currently at 64, indicating that the stock is in an overbought zone, but the price action suggests that the stock is likely to continue its upward momentum.
The stock has been forming a bullish triangle pattern, which is a bullish continuation pattern. The pattern suggests that the stock is likely to break out above the resistance level of Rs 250, which could lead to a rally of 25-30%.
Apcotex Industries (APCOTEXIND)
Apcotex Industries, a leading pigments and chemicals company, has been on a strong uptrend since March 2022. The stock broke out above the resistance level of Rs 140 on Tuesday, with a strong volume of 1.2 million shares traded. The RSI is currently at 60, indicating that the stock is in an overbought zone, but the price action suggests that the stock is likely to continue its upward momentum.
The stock has been forming a bullish flag pattern, which is a bullish continuation pattern. The pattern suggests that the stock is likely to break out above the resistance level of Rs 160, which could lead to a rally of 25-30%.
Conclusion
The four midcaps – Strides Pharma, Zuari Industries, Gateway Distriparks, and Apcotex Industries – have recently broken out with high volume, suggesting a strong bullish momentum. The price action and technical indicators suggest that these stocks may rally by 25-30% in the coming months. However, it is important to note that a close below the support levels could negate the view. Investors should wait for a pullback to the support levels before entering into long positions.
Disclaimer
The views expressed in this blog post are of the author and should not be taken as investment advice. It is always important to do your own research and consider your own risk tolerance before making any investment decisions.
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