3 Stocks to “Break Out of the Week” Friday! | News Bharat

It’s that time of the week when, ideally, you should be scanning for stocks with strong breakouts on weekly charts. So without delay, here are some stocks that should be on your watch list in the next few weeks.

Mahindra and Mahindra (NS:) Financial Services Ltd

Mahindra and Mahindra Financial Services Ltd (NS: ) is a mid-cap consumer finance company with a market capitalization of Rs 26,444 crore. The stock surged 3.95% to INR 229 on Friday, posting a nice breakout from a symmetrical triangle formation on the weekly chart.The week’s close was the highest since mid-February 2020, so the stock looks pretty strong right now

Caption: Weekly chart of M&M Financial Services

Image source: Investing.com

It may reach around INR 245 next week, however, based on the pattern, the stock is poised to bounce higher. A break below last week’s low of INR 199 would negate the impact of the pattern.

Unicom Financial Holdings Limited

L&T Finance Holdings Ltd (NS: ) is a diversified financial services company with a market capitalization of Rs 21,980 crore. The stock rose more than 3.34% to close at INR 91.35 in today’s trade, its highest weekly close since mid-October 2021. In the prior week, the stock broke above a downtrend line on the weekly chart, and this week broke above horizontal resistance.

Caption: Weekly chart of L&T Finance Holdings

Image source: Investing.com

There’s a good chance the stock will be quoting triple-digit prices soon. However, a level around INR 95 may be on the screen next week. Support was slightly lower on the weekly chart at around INR 80, which allowed the stock to dip several times before the trendline was broken.

Liquisa Infrastructure Ltd.

Likhitha Infrastructure Ltd (NS: ) is a little known construction and engineering company that doesn’t often get investors’ attention given its market capitalization of just INR 813 Cr. However, this is my favorite option out of all three mentioned on this list. The weekly chart is terrific, breaking clear all-time highs and supported by huge volume of 18.82 million shares, the highest weekly volume since the stock was listed on the exchange.

With the stock up more than 31% this week, waiting for a pullback to join the rally might be the right idea. Support around INR 240 is almost the perfect level to watch. It wouldn’t be surprising if the stock doubled from here, it’s not a fictional target, but looking at the depth of the correction before the breakout, it could easily rally to around INR 120.

Note: The weekly chart for Likhitha Infrastructure has not been released as there appears to be some pricing issues with the split adjustment (1:2) with an ex-dividend date of today.

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