T20 breakout stocks: Best swing trading stocks to keep an eye on!

On Friday, Nifty opened the session with a gap down and made a low of 15,632 in the first half an hour of trade. Thereafter, it managed to trim its morning losses and moved above the neutral line. However, it failed to hold onto positive territory for too long and finally, ended the day below the 15,700 mark. Meanwhile, the broader markets settled about half a per cent higher.

Going ahead, the stock selection would be crucial for traders and hence, we have pulled out a list of stocks, which should be on your watchlist for swing trading.   

An important point to note here is that these stocks are filtered using price action and volumes. Volume is greater in the last 20 days while the price closed at a 20-day high. We have named it as ‘Twenty-20 breakout system’.    

So, here is the list of stocks:  

Bajaj Finserv: Bajaj Finserv relatively outperformed Nifty 500 index as it logged gains of over 4 per cent. On a day of fierce volatility, this stock was standing tall and strong! July futures contract saw the addition of 13.78 per cent in open interest and theoretically, increase in price along with the addition of open interest, indicates long built-up.

Granules: This stock met the criteria of the Twenty-20 breakout system. The stock maintained its sequence of higher top & bottom throughout the day on the lower timeframe. Furthermore, the bulk of the volume in the stock was witnessed in the last leg of the trade.

Jindal Stainless: The stock gained nearly 10 per cent on a day when markets were reeling under selling pressure. What excites us more about this stock is that it not only meets the criteria of the Twenty-20 breakout system but also, witnessed nearly 40 per cent of its total volume in the last hour of the trade.

Oracle Financial Services Software: The stock has registered a fresh 52-week high on Friday and also, witnessed a breakout of the flat base pattern.

Sunteck Realty: Nifty Realty index gained more than 2 per cent on Friday. The stock of Sunteck Realty was in the limelight as the stock gained nearly 7 per cent and recorded the highest single-day volume seen in almost last one year.

Vardhman Textiles: Textile companies were in demand in an otherwise subdued market. Vardhman Textiles hit a fresh 52-week high on NSE in intraday trade on Friday amid expectations of earnings improvement.