Strong bases and volume-supported breakouts in these three stocks suggest the uptrend could extend.
Three financial heavyweights, Bajaj Finance, Shriram Finance, and Kotak Mahindra Bank, are showing strong breakout patterns on the charts. SEBI-registered analyst Financial Sarthis flagged three stocks to watch for the week ahead, as they have formed a solid base supported by healthy volume trends.
Bajaj Finance
Financial Sarthis said Bajaj Finance has shown a pattern of breakout, retest, and consolidation near its highs. The stock also saw a massive surge in volumes during the breakout phase, followed by a healthy contraction during the retest. This is considered a sign of underlying strength.
A move above ₹1,040 could indicate a continuation of the breakout phase. Their verdict is that a strong base a formed, suggesting the stock is poised for the next leg of the rally.
Bajaj Finance shares have rallied 50% year-to-date (YTD).
Shriram Finance
According to the analyst, the stock showed signs of a range breakout with sideways consolidation occurring near the upper band. Shriram Finance saw good volumes on the breakout candle, while volumes tapered off during the consolidation phase, which is typically a sign of a bullish setup.
A sustained move above ₹675 is likely to trigger a meaningful move, as the stock appeared to be coiling up for a potential breakout burst.
Shriram Finance shares have rallied 15% year-to-date (YTD)
Kotak Mahindra Bank
Kotak Mahindra Bank has completed its gap-filling process and was consolidating around a key resistance zone. This rally was supported by increasing volumes, followed by a sideways movement with lower volumes, which is a sign of a healthy pause before a possible next leg.
According to Financial Sarthis, traders can look to enter above ₹2,160, with support at ₹2,085 and resistance at ₹2,220 and ₹2,280. Technicals show that the stock’s next move could prove decisive.
Kotak Mahindra Bank shares have rallied 20% year-to-date (YTD)
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