Amid ongoing volatility in the equity market, a limited set of stocks is showing technical signals that suggest proximity to potential breakouts, according to technical indicators including charts, trading volumes and moving averages.
Market participants continue to track stocks that may be positioned for the next upward move. In the current trading session, several stocks are exhibiting technical patterns that indicate they are close to breakout levels. Akash Shah, Technical Research Analyst at Choice Equity Broking, said chart patterns, volume trends and the positioning of moving averages indicate that some stocks are positioned for a possible short-term upward move.
Schneider Electric Infrastructure has shown a recovery from recent lows, accompanied by a visible increase in trading volumes, Shah said. According to him, higher volumes during the price recovery indicate active buying interest at lower levels. From a technical perspective, the stock has broken its declining trend and is trading above all key moving averages, a setup that indicates a shift in market structure.
Shah stated that Schneider Electric Infrastructure may be considered around Rs 769, with a stop loss at Rs 725. He added that if the current momentum sustains, the stock could move towards Rs 850 in the coming sessions.
Senores Pharmaceuticals continues to remain in an established uptrend, Shah said, adding that the stock has been forming higher highs over an extended period. The recent pause in price movement has been described by him as consolidation rather than weakness. On the charts, the stock is near the boundary of a declining trend. Shah said a firm close above Rs 835 could trigger fresh buying interest.
According to the analyst, Senores Pharmaceuticals may be considered around Rs 825, with a stop loss placed at Rs 780. On the upside, he indicated a potential move towards Rs 900 if a breakout occurs.
Sundaram Finance is trading near a critical level after facing resistance around Rs 5,500 for an extended period, Shah said. Despite the repeated tests of this level, the internal price structure has not shown deterioration. Prices remain above key moving averages, which, according to Shah, indicates continued buying interest at lower levels.
He said a sustained move above the Rs 5,500–5,550 zone would be viewed as a breakout, potentially opening the way for a move towards the Rs 5,900–6,000 range. On the downside, Rs 5,250 has been identified as a key support level and corresponding stop loss.
Across all three stocks, volumes are supporting prices near key technical levels, Shah said. He added that technical analysis typically observes sharp price movement when stocks break out after prolonged consolidation. He described Schneider Electric Infrastructure as showing signs of a trend reversal, Senores Pharmaceuticals as consolidating within a broader uptrend, and Sundaram Finance as approaching a potential breakout from a long-standing resistance level.
