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

It was a disappointing day for the Indian markets as Nifty and Sensex ended lower by more than half a per cent. Nifty closed below the 15,750 mark while Sensex dropped below the 52,600 mark. However, the broader markets continued to relatively outperform the frontline gauge wherein Nifty Smallcap 100 ended just below the neutral line.   

We believe that going forward, traders should shift their focus towards stock-specific opportunities rather than taking any directional bias bet on the index as the index has largely traded in a range in the recent past. Hence, we have chalked out a list of stocks that may see some good action in the near term.            

An important point to note here is that these stocks are filtered using price action and volumes. Volume was 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:     

APL Apollo Tubes: The stock skyrocketed in Tuesday’s session as it recorded a fresh high and interestingly, more than roughly 50 per cent of the volume was recorded in the last leg of the trade.   

CCL Products: The company is scheduled to report its earnings on July 29. Interestingly, the stock registering a fresh lifetime high just before its earnings indicates that market expectations are rife and the stock may come out with good results. Moreover, the stock witnessed an open=low scenario while nearly 50 per cent of the volume has been recorded in the last leg of the trade.   

Hindalco Industries: On Tuesday, Nifty Metal index outperformed the benchmark indices as it jumped nearly 1.5 per cent. The stock of Hindalco witnessed good price action accompanied by good volumes.   

Jindal Saw: The stock is scheduled to report its earnings on July 30. It has witnessed good buying interest in the first half of the trading session while in the second half, it was seen consolidating within a broad range. Hence, a move above this range could spark some good momentum in the coming days.   

Manappuram Finance: On an extremely volatile day, this NBFC stock displayed a spectacular performance by not only recording a fresh 52-week high but also, by closing near its day’s high.   

SBI Life Insurance Company: The stock witnessed a breakout after a prolong consolidation and moreover, since it sustained above the breakout level during such an adverse day in the market, it speaks a lot about the quality of the breakout in the stock.   

Tata Coffee: The stock is scheduled to report its earnings on July 28. It recorded the bulk of its volume in the second half of the trading session, which suggests that there is a lot of interest in the stock.