Breakout Stocks: How to trade Swan Energy, Alkem Laboratories and Jyothy Labs on Thursday

Indian market bounced back on Wednesday after closing flat in the previous trading session. The S&P BSE Sensex closed marginally higher but failed to close above 65000.

Sectorally, buying was seen in realty, oil & gas, healthcare and industrials while banks, telecom, IT and utilities saw some profit booking.

Stocks that were in focus on Wednesday include names like Swan Energy which rose more than 4%, Alkem Laboratories which closed with gains of more than 5% and Jyothy Labs which gained nearly 4%.

We have collated a list of three stocks that either hit a fresh 52-week high, or all-time high or saw a volume or a price breakout.

We spoke to an analyst on how one should look at these stocks the next trading day entirely from an educational point of view:

Here’s what analyst Viraj Vyas CMT, CFTe, Technical & Derivatives Analyst (Institutional Equity), Ashika Stock Broking Limited has to say:

Swan Energy
After a long consolidation period from 2018 to 2022, the stock has started to move upwards. The chart post-2022 shows a significant unidirectional intensity in price movement, as the stock consistently formed higher highs and higher lows.

It has now reached its all-time high. Given the stock's volatile nature, it would be advisable to trail any positions with a stop-loss at around Rs 380.

The stock has exhibited a Flag and Pole-like pattern on the daily chart, and the target for this pattern is around Rs 450-460. This suggests the potential for further upside.


Alkem Laboratories
The stock belongs to the pharmaceutical sector, which has gained momentum since March 2023. After a consolidation phase starting in September 2021, the stock appears to be forming a Cup and Handle chart pattern on the weekly charts.

This pattern typically signifies accumulation and is often a continuation pattern, suggesting that the stock may be poised to begin the next phase of its upward movement.

The stock is expected to reach around Rs 4900 first and potentially advance to Rs 5300 in the coming months. Critical support is observed at the Rs 3800 level. This pattern and outlook indicate potential bullish momentum for the stock.


Jyothy Labs
The stock has experienced a robust uptrend since June this year, with a substantial price surge taking it from Rs 200 to Rs 400 Rs. It's currently trading near its all-time highs and exhibiting relative strength compared to the Nifty 50.

However, from a risk-reward perspective, it may not be an attractive option for trading at its current level.

Investors are advised to continue holding the stock, with a key support level seen around Rs 370. This strategy aims to capture potential further gains while managing risk.


Disclaimer: All of the above observations are shared for educational purposes only.

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)