Breakout stocks: Nykaa, DMart, Union Bank can rally up to 20%, hint charts

Union Bank of India, Avenue Supermarts (DMart), CCL Products, FSN E-Commerce Ventures and Tata Power among 9 NSE stocks with bullish MACD crossover on the daily charts.

Breakout stocks on the NSE: A total of 9 out of the Nifty 500 stocks have given a fresh breakout on the daily chart based on this particular key momentum indicator - the MACD (Moving Average Convergence-Divergence) indicator.

The MACD line for 9 stocks namely - Union Bank of India, Tata Power, EIH Hotel, Avenue Supermarts (DMart), CCL Products (India), Hindustan Petroleum (HPCL), PB Fintech (PolicyBazaar), FSN E-Commerce Ventures (Nykaa) and Indian Bank - crossed the respective signal line.

Technically, whenever the MACD line crosses from below to above the signal line, the indicator is considered bullish; which is the case for the above mentioned stocks.

Here's a quick technical analysis, on other key parameters for select five stocks, alongside potential support and resistance levels.

Nykaa

Current Price: Rs 179

Upside Potential: 17.3%

Support: Rs 180; Rs 176

Resistance: Rs 185; Rs 189

Not only has the MACD given a bullish breakout for Nykaa, but the stock is also seen trading above its higher-end of the Bollinger Bands on the daily scale. Thus, the near-term bias for Nykaa stock is likely to remain bullish as long as the stock trades above Rs 180 levels; below which the key support stands at Rs 176. CLICK HERE FOR THE CHART

On the upside, the stock has near resistance at Rs 185 and Rs 189, shows the long-term chart. Breakout and sustained trade above the same can trigger a rally towards Rs 210 levels.

Union Bank of India

Current Price: Rs 136

Upside Potential: 19.9%

Support: Rs 132; Rs 126; Rs 124

Resistance: Rs 147

Union Bank of India stock is seen testing support at its key moving averages across time-frames. On the daily scale, the stock is testing support at its long-term (200-DMA) daily moving average, which stands at Rs 132. CLICK HERE FOR THE CHART

Similarly, on the weekly scale the stock has near support around its 50-WMA (Weekly Moving Average) at Rs 124 and on the monthly scale at 200-MMA (Monthly Moving Average) at Rs 126.

Going ahead, the stock is likely to seek support around these key moving averages. On the upside, the stock may bounce back and test its 100-DMA resistance at Rs 147 levels; sustained trade above the same can trigger an up move towards Rs 163.

Avenue Supermarts (DMart)

Current Price: Rs 4,993

Upside Potential: 13.8%

Support: Rs 4,850

Resistance: Rs 5,010; Rs 5,170

The DMart stock at present is seen testing resistance around its higher-end of the Bollinger Bands on the daily scale at Rs 5,010 levels. On the upside, next hurdle for the stock is seen at Rs 5,170. Above which, the stock can potentially rally to Rs 5,680 levels. CLICK HERE FOR THE CHART

The long-term chart suggests that the overall bias for the stock is likely to remain positive as long as the stock holds above Rs 4,850 levels. 

CCL Products

Current Price: Rs 602

Upside Potential: 13%

Support: Rs 594

Resistance: Rs 615

CCL Products is seen testing resistance around its 200-DMA, which stands at Rs 615, for the last four trading sessions. Earlier in June, too, the stock attempted to break above its 200-DMA but failed. CLICK HERE FOR THE CHART

Given the support from key momentum oscillators, the stock may look to breakout in the near-term. As such, the stock can potentially rally to Rs 642 and Rs 680 on the upside.

The near-term bias for the stock is likely to remain positive as long as the stock holds above its 100-DMA, which stands at Rs 594.

Tata Power

Current Price: Rs 432

Upside Potential: 7.6%

Support: Rs 425; Rs 419

Resistance: Rs 445

Tata Power stock has been trading in a tight range of Rs 425 - Rs 450 for the last one month. The stock, at present, is seen trading closer to the lower-end of the existing trading range. Below, which the next significant support stands at Rs 419 - its 100-DMA. CLICK HERE FOR THE CHART

On the upside, the stock has near support at Rs 445; sustained trade above the same can trigger a rally towards Rs 465 levels.