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.