T20 breakout stocks: Best swing trading stocks to keep an eye on!
Nifty extended its unbeaten streak for the fifth straight day on Thursday wherein, it opened with a positive bias and made a high of 18,272.25. On the account of the weekly option expiry, bouts of volatility were witnessed and consequently, the index slipped to register an intraday low of 18,163.80. However, in the last leg of the trade, upside recovery was seen from the lows of the day, and thus, the index recovered nearly 90 points from the day’s low. In the end, it closed with gains of 0.25 per cent.
On the daily chart, the index has formed a Dragonfly Doji-like candle pattern. Usually, the formation of such a candle pattern, after a stellar run-up, indicates indecision or uncertainty among the market participants. Meanwhile, the positive sequence of higher highs & higher lows continued on the daily chart, which indicates that the overall technical structure is solid and also, has a strong underlying current.
Talking about the sectoral performance, the majority of the sectors ended in the green, led by Nifty Metal and Nifty Pharma while on the other hand, Nifty Realty & Nifty Bank witnessed profit booking.
The momentum is expected to continue in the markets and hence, we have shortlisted some stocks based on the T20 breakout system.
So, here is the list of stocks:
Gujarat Narmada Valley Fertilizers & Chemicals (GNFC): The stock has recorded one of the best single-day gains in a long time. Moreover, it also witnessed good volume action in the second half of the trading session.
Jindal Steel & Power and Tata Steel: You must have heard of the proverb, ‘birds of a feather flock together’, similarly, all these companies from the metal sector have appeared in the T20 breakout system, which clearly indicates that this sector is likely to be in the limelight in the coming days.
United Spirits: The stock met the criteria of the T20 breakout system and witnessed a trending day. Furthermore, it managed to close in the top quartile of the range; hence, keep a close watch on this stock.
Tata Elxsi: The stock met the criteria of the T20 breakout system and witnessed a trending day. Furthermore, it managed to close in the top quartile of the range; hence, keep a close watch on this stock.
Tata Power: The stock has recorded one of the best single-day gains in a long time. Moreover, it has witnessed good volume action in the second half of the trading session.