3 Stocks that Started the Week with ‘Resistance Breakout’!

If you are following this space for a while, you would probably be having a good idea about breakouts by now. If you are looking for stocks that breached a major resistance and could potentially make a splash this week, here are some of the good ones.

Sobha Limited

The first one on the list (in no particular order) is Sobha Limited (NS: SOBH ) which is a real estate developer with a market capitalization of INR 5,949 crores. The stock broke out of a consolidation range on Monday, delivering a good intraday gain of 5.16% to INR 670.05. This was more than a 2-month-long range that the stock broke today.

Image Description: Daily chart of Sobha Limited with volume bars at the bottom

Image Source: Investing.com

I mentioned a couple of days back, that the real estate sector is showing a higher relative strength and therefore should be on the radar. According to the height of the range, the stock could bolster to a high of around INR 700 to INR 715.

Finolex Industries Limited

Finolex Industries Ltd. (NS: FINX ) manufactures polyvinyl chloride (PVC) pipes and fittings, and PVC resins and has a market capitalization of INR 9,816 crores. Just like Sobha, Finolex Industries also gave a range breakout in today’s session, rising above the resistance of INR 170, closing the session 6.7% up at INR 174.35.

Image Description: Weekly chart of Finolex Industries with volume bars at the bottom

Image Source: Investing.com

But this one was a longer range as the stock was trading sideways since mid-February 2022 and was deadlocked between INR 170 and INR 130. As the bulls have finally won the tug-of-war, a rally to INR 210 could materialize now. 

Tata Steel Limited

The last name on the list is Tata Steel Ltd (NS: TISC ) which is a large-cap miner with a market capitalization of INR 1,28,067 crores. The entire metal space is buzzing for the last few sessions and today the Nifty Metal index surged to an all-time high of 6,835.35. Most of the stocks in this space are looking quite good and Tata Steel is no different.

Image Description: Daily chart of Tata Steel with volume bars at the bottom

Image Source: Investing.com

The stock has been rallying for 5 consecutive sessions (including today) gaining a total of 10.4%. Today, it broke above the resistance of INR 113 and is now looking to head to around INR125. Tata Steel is also the cheapest stock in the entire Nifty 50 list, with a P/E ratio of a mere 3.19.