Analyst flagged Nuvama at a critical support, and PNB Housing is primed for gap-filling moves.
Analyst Financial Sarthis has flagged five breakout stocks to watch for trade on Wednesday. Tata Investments and AU Small Finance Bank are showing fresh breakout signals, while Nuvama Wealth hovers at a critical support. On the other hand, Kotak Mahindra Bank and PNB Housing Finance could trigger gap-fill rallies if they cross key levels.
Let’s take a look at the stock recommendations:
Tata Investments
Tata Investment has seen a strong breakout above multi-month resistance near ₹7,600. The buildup in volumes supports a fresh up-move. If the stock breaks Tuesday’s highs, it is likely to see a significant upside.
Nuvama Wealth Management
Nuvama stock has been testing key horizontal support around ₹6,155 after a steady downtrend. Additionally, rising sell volumes signal pressure at the floor. Financial Sarthis flagged that Nuvama is at a crucial make-or-break zone. If it breaks Tuesday’s low, it could see a sharp decline.
AU Small Finance Bank
AU Bank has seen a daily breakout above ₹724, marking a short-term resistance. The healthy uptick in buying volume confirms the move. If it sees a fresh upside trigger above Tuesday’s high, it could build on the bullish momentum.
Financial Sarthis also identified two gap-fill candidates for Wednesday. A gap-fill rally occurs when a stock’s price moves back up to close the gap created by a sudden drop or jump, returning to the price level before the gap occurred.
PNB Housing Finance
PNB Housing shares fell following the news of its CFO’s exit. However, the stock managed to close above the gap-down “mother candle.” A sustained follow-up move on Wednesday could potentially trigger a gap-filling rally towards ₹965 in the coming days.
Kotak Mahindra Bank
Kotak Mahindra Bank has been facing resistance at ₹2,055, a level established by a gap-down candle on July 28. The stock is now making its fourth attempt to close above this crucial barrier. Supported by strong volumes, a daily close above ₹2,055 may pave the way for a gap-fill rally, with a potential target of ₹2,118 in the near term.
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