StoxBox handpicks 7 techno-funda stocks that can rally up to 14%

The price action rallied 369% from the all-time lows of 37 levels. It underwent an 89-week long gestation period which indicates modest accumulation, fueling further upside. The prior trend has shown its ability to rise in price and indicates buying interest in the stock.It formed a Darvas box on improving relative performance compared to Nifty 50 after breaking out which is anticipated as another base of accumulation. It has potentially pierced above the Darvas ceiling and thus the brokerage reckons a buy on the stock.

The price action on the daily chart has been forming a potential rounding bottom pattern. The price action has been trading in a 26 points i.e. 2.7% trading range as it trades below the breakout point. This can be observed as price action attempting at garnering bullish strength ahead of the pattern breakout.

The area from 940-930 is a crucial support zone coupled with the previous gap area and key shorter-term exponential moving averages. The 50-period comparative volatility remains at low. Hence the probability of any unruly move is less likely.

The pattern analysis on the weekly timeframe shows that price action has entered stage two. An ideal time to initiate investments is the stage 2 breakout point.

The long consolidation phase after the price tanked 63% from the all-time highs showcased the ownership of stocks was potentially transferred from the weak to strong hands. This was also an indication that the downside momentum and strength had waned off.

The price action has been trending with higher highs and higher low swings after hitting rock bottom near the level of 43. This primarily indicates that the up-trend is gathering strength. The price action has recently witnessed a bullish breakout from a multi-year trendline and an ascending wedge pattern.


The RSI across daily, weekly and monthly timeframes are trading neutrally above the 60 mark without showing any divergence against the price. This further suggests that price momentum has a relatively higher thrust

Maruti’s price action witnessed its longest gestation period since its inception. It showed tepidness to resume its primary trend’s up move in June ‘22, however, it took a breather and started to base in November ‘22 at the crucial support of the polarity zone from 8100-8255 levels. The basing over an elongated sideway movement is seen as accumulation.

The accumulation period led to the formation of a double-bottom price pattern and staged a bullish breakout on a breakaway gap. The gapping up on the breakout point indicates strength in the price action.

The IT stock manifests the characteristics of being a potential market leader within the sector. The stock has staged a bullish breakout from the cup and handle pattern on a tepid volume note.

The bullish breakout comes near life highs while the IT index potentially attempts to unfold from its lows whilst in a multi-month consolidation phase. It also shows stronger and improving relative performance compared to the benchmark of the 50 index

The price action has been trading in a multi-year consolidation phase. However, within the sideway trend, the price action witnessed a series of higher swing lows. While the swing highs remained nearly constant, while the lows elevated, this indicated buyers taking advantage of the dips and accumulating the available supply in the market.

The price action showed resilience to further supply amidst a hostile market environment in recent times which suggests strength in the price action.

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