T20 breakout stocks: Best swing trading stocks to keep an eye on!
Nifty ended the final trading session of July series F&O expiry on a positive note as it logged gains of nearly half a per cent. The broader markets were also buoyant on Thursday as Nifty Midcap 100 and Smallcap 100 gained nearly 0.75 per cent and 0.90 per cent, respectively.
The stock-specific action was the key theme during July series as the frontline indices were seen capped in a range. Hence, going forward as well, picking up the right stock at the right time would help to outperform the markets and generate alpha returns. Hence, we have chalked out a list of stocks that may see some good action in the near term.
An important point to note here is that these stocks are filtered using price action and volumes. Volume was greater in the last 20 days while the price closed at a 20-day high. We have named it as ‘Twenty-20 breakout system’.
Interestingly, a lot of names have come up in the metal index.
Tata Steel, SAIL, Hindalco Industries, JSW Steel, Vedanta Ltd & National Aluminium: You must have heard of the proverb, ‘birds of a feather flock together. Similarly, all these companies from the metal sector have appeared in the T20 breakout system, which clearly indicates that this sector is likely to be in the limelight in the coming days.
Balrampur Chini Mills: The stock recorded its fresh high on Thursday and witnessed buying interest throughout the day as it maintained a sequence of higher high & higher low.
Coforge: The stock opened with a gap on Thursday while one-third of the total volume of the day was seen in the first hour of the trade, which was then followed by a healthy consolidation and once again, a sharp spurt was seen in the latter part of the session.
Mahindra Logistics: The stock has recorded one of the best single-day gains in a long time. Moreover, it has witnessed a breakout of stage-2 consolidation pattern along with above-average volumes.
State Bank of India (SBI): SBI was the second-best contributor to the index as it contributed as much as 14.8 points to Nifty’s kitty on Thursday. The stock has witnessed a breakout of the flat base pattern.
Schneider Electric Infrastructure: The stock recorded the highest single-day volume since May 25. Interestingly, nearly 90 per cent of the volume in the stock was recorded in the second half of the trading session.
Swan Energy: The stock meets the criteria of Mark Minervini’s volatility contraction pattern (VCP). Besides, it got locked at the upper circuit on Thursday.