Breakout stocks: SRF, Shoppers Stop can rally up to 10%, hint tech charts

Alok Industries and Chambal Fertilisers among others have recently bounced back above their 30-EMAs; charts suggest a possibility of an up move in the near-term.

Alok Industries, Chambal Fertilisers, Shoppers Stop and SRF are among the select Nifty 500 stocks that seemed to have turned favourable, and hold promise of a potential trend reversal, based on the recent price action.

These four stocks have managed to scale back above the 30-day EMA (Exponential moving 

Average) and further the Parabolic SAR (Stop and Reversal) indicator signaled a favourable trend going ahead.

The Parabolic SAR indicator helps in identifying suitable entry and exit points using a trailing stop and reverse method. 

Here's what the daily charts suggest for these four stocks.

Alok Industries

Current Price: Rs 27.35

Upside Potential: 10%

Support: Rs 26.20

Alok Industries has tumbled almost 34 per cent from its high of Rs 39.05 touched on January 09. In recent days, the stock has taken support around its 100-DMA (Daily Moving Average) which now stands at Rs 26.15. Further, the stock is seen trading above its 30-day EMA. 

Thus, one can expect a potential bounce back in the stock price as long as the support at Rs 26.15 is held. On the way up, the stock can test its 50-DMA at Rs 29.80 or move bit higher to test the higher-end of the anticipated trading band at Rs 30.30. CLICK HERE FOR THE CHART

Chambal Fertilisers & Chemicals 

Current Price: Rs 342

Upside Potential: 7.6%

Support: Rs 332

Chambal Fertilisers has declined 17.6 per cent from its high of Rs 403 hit on January 04. The stock has witnessed sharp swings in these three months, and is seen trading below all its key moving averages. However, other than the stock jumping back above its 20-EMA, select momentum oscillators too have turned favourable for the stock.

Going ahead, the recent low around Rs 332 can be expected to provide support for the stock. Whereas, on the upside, the stock needs to clear multiple hurdles in the Rs 349 - 351 range. Sustenance above the same can trigger an up move towards Rs 370. CLICK HERE FOR THE CHART

Shoppers Stop

Current Price: Rs 747

Upside Potential: 5.1%

Support: Rs 746; Rs 739; Rs 728

Shoppers Stop is broadly seen trading in a range of Rs 700 - 800 in the last two months. While, the stock is now seen quoting above its 30-EMA, the price-to-moving average action also remains favourable for the stock on the daily scale.

Going ahead the 20- and 50-DMA at Rs 746 and Rs 739 followed by the 200-DMA at Rs 728 are likely to act as near-term supports. On the upside, the stock can re-test the higher-end of the Bollinger Bands on the daily chart at Rs 785. CLICK HERE FOR THE CHART 

SRF

Current Price: Rs 2,585

Upside Potential: 8.3%

Support: Rs 2,560

SRF recently gave a fresh breakout on the daily scale, and has since gained more than 2 per cent. The stock trades with a bullish bias on multiple technical parameters, including the price-to-moving averages action. Key momentum oscillators too are fairly in favour of the bulls at the counter.

As per the daily charts, the bias for the stock is likely to remain bullish as long as it holds above Rs 2,560. The stock has some resistance around Rs 2,640, above which it can potentially rally to Rs 2,800. CLICK HERE FOR THE CHART