Zomato, 4 others zoom up to 45% in August; charts suggest more strength

Zomato and Metro Brands may see an upside of up to 32 per cent, while JSW Energy, Kensai Nerolac, and Hikal could surge up to 11 per cent.

The Indian equity indices have staged a smart recovery from their 52-week lows in June 2022. So far, the BSE Sensex and NSE Nifty50 have surged 18 per cent each from their distressed lows.

In August, the two frontline indices have gained 4.5 per cent each with few stocks soaring up to 40 per cent. The two major winners from the Nifty 500 are Zomato and JSW Energy, which have jumped 45 per cent and 40 per cent, respectively. Metro Brands, Hikal and Kansai Nerolac Paints are other stocks that have rallied over 25 per cent each this month.

Are these stocks ready for a strong bull run ahead? Here's what technical charts suggest:

Zomato Ltd (ZOMATO)

Likely target: Rs 80 and Rs 90

Upside potential: 17% to 32%

Having seen a major drawdown in the stock price since November 2021, the shares of the food delivery company found support near Rs 40 level. Zomato shares had lost 75 per cent from the all-time high of Rs 169 after they touched a low of Rs 40.60 in June 2022. The stock is up 45 per cent in August and technically shows an intent to reach the next significant hurdles ata Rs 80 and Rs 90. The immediate chart structure denotes “Inverse Head and Shoulder” breakout, with the support at Rs 60 and Rs 53 marks. CLICK HERE FOR THE CHART

JSW Energy Ltd (JSWENERGY)

Likely target: Rs 360 

Upside potential: 10%

JSW Energy was holding the support of Rs 280 post hitting its historic peak in December last year. The moment it lost the grip, the stock hit a new 52-week low in June 2022. At present, the stock is back over Rs 280 level and hints at a rally to cross the next hurdle of Rs 360. As and when this happens, technically the stock shall move to a record all-time high. CLICK HERE FOR THE CHART

Metro Brands Ltd (METROBAND)

Likely target: Rs 1,000

Upside potential: 17% 

Metro Brands debuted in December last year and since then has not made any fresh lows. The stock is up 91 per cent from the debut price and 30 per cent so far this month. The footwear retail chain's stock broke out on the upside when it conquered Rs 680 level in late July 2022. Thereafter, the stock rose vertically exhibiting a robust momentum. Support for the stock is seen at Rs 775 and Rs 700 levels with technical chart reflecting a positive move towards Rs 1,000-mark. CLICK HERE FOR THE CHART

Hikal Limited (HIKAL)

Likely target: Rs 350 

Upside potential: 11%

When a stock perceives a breakout after a consolidation phase, along with support from Moving Average Convergence Divergence (MACD), which jumped over the zero line, the short-medium term outlook becomes bullish.  So is the case with Hikal. The stock seems headed towards Rs 350 with volumes firmly backing the move. Support for the stock exists at Rs 300 and Rs 285 levels. CLICK HERE FOR THE CHART

Kansai Nerolac Paints Ltd (KANSAINER)

Likely target: Rs 550

Upside potential: 9%

The paint company's scrip firmly holds over the 200-day moving average (DMA) positioned at Rs 487 mark. Technically, this scenario suggests a robust underlying sentiment. The trend is positive and may help the stock reach Rs 550 on an immediate scale, shows the daily chart. The Relative Strength Index (RSI), an oscillating indicator which observes price strength, has not had any negative impact in the overbought category, symbolizing resilient bullishness. CLICK HERE FOR THE CHART