3 Stocks Delivering ‘Weekly Breakout’ of Friday!

  • Stock Market Analysis
  • Editors Pick

It’s that time of the week when you should ideally be scanning for stocks that have delivered a robust breakout on the weekly charts. So, without a delay, here are some of the stocks that should be on your watchlist for the next few weeks.

Mahindra and Mahindra (NS: MAHM ) Financial Services Ltd

Mahindra and Mahindra Financial Services Ltd (NS: MMFS ) is a midcap consumer finance company with a market capitalization of INR 26,444 crores. On Friday, the stock surged 3.95% to INR 229, delivering a good breakout from the symmetrical triangle pattern on the weekly chart. This weekly closing is the highest since mid-February 2020, hence the momentum in the stock seems quite strong now

Image Description: Weekly chart of M&M Financial Services

Image Source: Investing.com

A level of around INR 245 could come in the next week, however, according to the pattern, the stock is poised to rally much higher. A break below the previous week’s low of INR 199 would negate the pattern’s implication.

L&T Finance Holdings Limited

L&T Finance Holdings Ltd (NS: LTFH ) is a diversified financial services company with a market capitalization of INR 21,980 crores. The stock rallied over 3.34% in today’s session, closing at INR 91.35 which is the highest weekly closing since mid-October 2021. In the previous week, the stock delivered a falling trendline breakout on the weekly chart, and this week, a horizontal resistance was breached.

Image Description: Weekly chart of L&T Finance Holdings

Image Source: Investing.com

There’s a pretty fair chance that the stock would soon be quoting in triple digits. However, a level of around INR 95 could be on the screen next week. The support on the weekly chart is a bit lower, at around INR 80, which kept the stock from falling quite a few times prior to the trendline breakout.

Likhitha Infrastructure Limited

Likhitha Infrastructure Ltd (NS: LIKI ) is a lesser-known construction and engineering company as it has a market capitalization of just INR 813, therefore it does not come on investors’ radar quite frequently. However, it is my favorite pick amongst all three mentioned in this list. The weekly chart is just awesome with a crystal-clear all-time high breakout, supported by a gigantic volume of 18.82 million shares which is the highest weekly volume since the stock listed on the exchanges. 

As the stock rallied over 31% this week, waiting for a correction to participate in the rally would probably be the right idea. The support around INR 240 is almost a perfect level to keep a tab on. It won’t be surprising if the stock even doubles from here, which is not a made-up target, but looking at the depth of the correction prior to the breakout, a rally of around INR 120 is easily possible.

Note: The weekly chart Likhitha Infrastructure has not been posted as there seems a bit of a pricing issue on account of the split adjustment (1:2), the ex-date of which was today.

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  • Renuka Kakade @Renuka Kakade
    M&m fin amazing breakout
    Like 0
  • Capt Siddharth Udawat @Capt Siddharth Udawat
    Like always.... fantastic analysis 👍👍
    Like 2
  • Dharma Nitheesh @Dharma Nitheesh
    thanks for the information
    Like 1
  • SUNIL GOYAL @SUNIL GOYAL
    My opinion is all three will sink atleast 12 % average
    Like 0
  • Muvva Varshitha @Muvva Varshitha
    Superb analysis sir 👍👍
    Like 1
    • Aayush Khanna/Investing.com @Aayush Khanna/Investing.com
      Thank you Muvva :)
      Like 0
    • Muvva Varshitha @Muvva Varshitha
      I have position in likitha but not expected your observation on such a small company , really great sir🙏🏻🙏🏻🙏🏻
      Like 1
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  • namami ghosh @namami ghosh
    excellent weekly charts but why are the volume bars missing?
    Like 1
    • namami ghosh @namami ghosh
      there are different points of reversal... which one and what time frame should be considered
      Like 0
    • Aayush Khanna/Investing.com @Aayush Khanna/Investing.com
      Woah! that's a whole lot to explain :) Was explaining but ran out of the word limit of the comment section. Drop me a mail with your queries.
      Like 1
    • namami ghosh @namami ghosh
      That's so kind of you, Guruji. Am definitely taking you up on your generous offer and will drop a mail soon. a heartfelt thanks once again :D
      Like 1
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  • Arch Insam @Arch Insam
    Exide is good. Sbi life looks soggy
    Like 0
  • KhiladiZon @KhiladiZon
    I think M&M ne fake breakout diya hai
    Like 0
  • Ria Singh @Ria Singh
    thanks 👍
    Like 0
    • Aayush Khanna/Investing.com @Aayush Khanna/Investing.com
      You're welcome Ria.
      Like 0
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  • Harshkumar Patel @Harshkumar Patel
    What about Exide industries?And SBI life insurance
    Like 0

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