Breakout Stocks: Alembic Pharmaceuticals and Karur Vysya Bank

Alembic Pharmaceuticals and Karur Vysya Bank are identified as upside potential stocks based on technical analysis. Both stocks have displayed promising structures and technical setups, including price volume contraction and the potential to bounce back and breakout. Currently trading at Rs 984.20 and Rs 182.75 respectively, their price aligns with positive signals from technical indicators like RSI and ADX, suggesting a breakout scenario likely in the coming time.

Alembic Pharmaceuticals Ltd 

Daily chart of Alembic Pharmaceuticals Ltd

On the daily chart, the Alembic Pharmaceuticals is presently showing a promising picture; the stock price is moving up after taking support. The stock price may resume its strong momentum-up in the coming trading sessions if it manages to cross and close above the high of the mother candle as marked on the chart, with the support of decent volume compared to the current volume. Volumes are dry right now and likely to rise soon.

Those considering a possible trade-in Alembic Pharmaceuticals might purchase the stock at the present price with a stop loss of Rs 945 on a closing basis and aim to capitalize above its 52-week high.

The stock price is currently trading above its 50-day EMA, suggesting it is likely about to turn short-term bullish once more. The stock appears quite neutral when one looks at the Relative Strength Index, which is now trading at 51.93. The ADX of 20 indicates the present state of price momentum, which is moving with low momentum.

In the event of a retracement, it is essential to monitor key support levels, particularly at Rs 900. The minor upper resistance is the 52-week high, and if the stock closes above the 52-week high consecutively, then it may consistently trade above current levels.

Alembic Pharmaceuticals Ltd. is a research and development pharmaceutical company, which engages in the research, development, manufacture, and market of generic and branded pharmaceutical products.

Karur Vysya Bank Ltd 

The daily chart of Karur Vysya Bank Ltd

Karur Vysya Bank’s current performance is indicated by a favorable technical setup. The company’s shares are now trading at Rs 182.75 and may breakout the upper trendline of the channel. The stock price is currently trading slightly above the 50-day EMA.

Those interested in possible trade-in Karur Vysya Bank could purchase the stock at the present price, setting a stop loss below the 50-day EMA at Rs 175, and aim for a target price higher than the stock’s 52-week high.

The stock is trading above its all-important moving averages, and it is expected to find support near Rs 170. The Relative Strength Index is trading near neutral levels at 53.80. This implies there may be potential for an increase in stock price strength. The ADX, now around 15, shows low momentum and directional strength.

The level at Rs 170 serves as a crucial indicator for corrective movement, and the overall market structure favors traders if the stock crosses and trades above the 52-week high.

Karur Vysya Bank Ltd. engages in the provision of delivering banking solutions with leveraging its customer-centric approach.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.