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

There were multiple concerns at the back of the mind such as valuations, which still remain elevated.

On Wednesday, the stocks tumbled along with Nifty index. The formation of a bearish engulfing pattern would have scared the life out of investors. Even the permabull investor (someone who consistently acts in the expectation that the value of stocks & shares will rise) could have got easily been jaded as there were multiple concerns at the back of the mind such as valuations, which still remain elevated. Besides, inflation in the developed economy is proving to be tougher than expected and the US Federal Reserve is likely to move forward with ‘tapering’ their balance-sheet purchases in November.  

Amidst this background, the bulls came back with a vengeance on Thursday as Nifty and Sensex surged 0.82 per cent each. The broader markets outperformed the frontline indices with Nifty Midcap 100 scaling to fresh records high and Smallcap 100 advancing 1.22 per cent.   

With a strong comeback from the bulls on D-Street, we have picked three stocks based on the T20 breakout system, which should be on your watchlist.   

So, here is the list: 

Lemon Tree Hotels: The stock jumped over 10 per cent and recorded its highest single-day volume since December 18, 2020. Moreover, buying interest was witnessed in the stock throughout the day. Keep a close watch on this stock. 

VIP Industries: The stock sky-rocketed over 9 per cent and witnessed a jump in the volume as well. Moreover, the bulk of the volume was witnessed in the second half of the trading session. Hence, watch out for this stock.  

Sobha Limited: The stock of Sobha made a fresh 52-week high and also, met the criteria of the T20 breakout system. Hence, keep a close watch on this stock.