The two sectors to monitor for breakout stocks in Nov-Dec 2022 are IT and metal.
On the basis of the price volume breakout, we can look at three breakout stocks for this November-December that can give potential returns to investors and traders. However, domestic and international market conditions could impact the movement of the stocks. In a typical market, we think these stocks will perform well as compared to other stocks.
Stocks that have broken out
- INFO EDGE INDIA LIMITED
- HINDALCO INDUSTRIES LIMITED
- COFORGE
Info Edge India Limited: Info Edge is India’s leading online classifieds company in recruitment, matrimony, real estate, education, and allied services. Info Edge is one of the nation’s very few profitable genuine online businesses.
| Total Market Cap (₹ Lakhs) | 55,97,910.81 |
Hindalco Industries Limited: Hindalco Industries Limited is a nonferrous flagship company of the Aditya Birla Group of India. Hindalco, a US$26 billion metals conglomerate, is a market industry leader in the production of aluminum and copper.
| Total Market Cap (₹ Lakhs) | 1,02,15,746.58 |
Coforge: In order to achieve real-world business effects, Coforge is a major global provider of digital services and solutions. It helps its clients transform at the interface of domain expertise and technological innovations. They have a unique point of view thanks to their specialization in a small number of specialized businesses, in-depth knowledge of their internal operations, and relationships with leading platforms.
To transform client organizations into intelligent, high-growth enterprises, Coforge sets a benchmark with its product engineering approach and makes use of Cloud, Data, Integration, and Automation technologies. Critical business processes across Coforge’s key verticals are powered by its proprietary platforms.
| Total Market Cap (₹ Lakhs) | 24,52,703.74 |
Breakout in Info Edge
On the daily chart for Info Edge, we can see that it has given investors significant returns in just two days. Last week, it hit a low of 3785.10, while today’s high was 4400. That suggests that the stock has given traders and investors a surprising 16% rise from the low price of last week. Its 52-week low is 3,313.00 on 26-May-2022 and its 52-week high is 6,696.00 on 18-Nov-2021.
Currently trading at 4360.85 on the NSE, Info Edge’s market price is still 34% behind the year’s high. Over the previous four to five months, its price has varied between 3500 and 4600. However, from October through November of this year, it has just created a modest range between 3700 and 3800.
Last week it dramatically broke out of the tight range from the lower range of around 3700 to the previous high of around 4100 with heavy volume. With the biggest volume in the previous six months, it eventually broke beyond the upper range of the previous month today.
It successfully broke both its 200-day (4174.67) and 50-day (3986.38) moving averages with the volume, which is encouraging for the bulls in the days ahead. The next area of congestion now appears to be between 4600 and 4700.
There won’t be much of a barrier below 5000 if the stock breaks through its upper range of the congestion zone with the volume. Up until December 2022, the projected price target range for Info Edge India Limited is 4700-5500.
Breakout in Hindalco Industries Limited
The chart structure of Hindalco Industries Limited on a daily time frame resembles Info Edge Limited, which is an interesting fact. If we look at Hindalco Industries Limited’s movement during the previous two days, we can see a 10% increase. Those who participated last week appear to have seen a good return this time.
Despite market volatility in the preceding week, particularly in the metal index globally, it formed a solid foundation near 405. Hindalco made a 52-week low of 308.95 on June 20, 2022, and a 52-week high of 636.00 on March 29, 2022, both on the NSE.
Hindalco’s market price, which is at 455.55 on the NSE, is still 28% behind its 52-week high. Its cost has fluctuated between 360 and 447 during the last four to five months. However, it only produced a tiny range between 380 and 427 from October through November of this year.
It suddenly and with considerable volume last week broke out of the consolidation range from the lower range of about 405 to the prior high of about 427. It eventually broke over the top range of the prior month today with the largest volume in the preceding six months.
With the volume, it was able to convincingly break both its 200-day (449.39) and 50-day (409.14) simple moving averages, which indicates well for the bulls going forward. Now, it seems like the next congested region is between 480 and 490.
If the stock breaks through its upper range of the congestion zone with the volume, there won’t be a substantial resistance below 550. The expected price target range for Hindalco Industries Limited is 490-550 until December 2022.
Breakout In Coforge
Despite Coforge’s movement being comparable to that of Info Edge and Hindalco during the past two days, it has a very different price history over the previous six months. The last four to five months had a range of 3200 to 3900. On the negative, it reached a low of 3210.05. But on a closing basis, its upside barrier was between 3950 and 4000. Its 52-week high was 6,135.00 on January 4, 2022, and its 52-week low was 3,210.05 on September 19, 2022.
The U.S. 10-year bond yields and the U.S. dollar index both experienced a dramatic decline, which helped information technology stocks rise strongly around the world. The high beta of Coforge’s stock allowed it to join the global tech surge earlier than its competitors. From the lows of 3640 last week, it reached a high of 4040 today. It has delivered a decent return of around 10% during the past two days.
The volume in the last two days is quite impressive for Coforge India. We have seen the highest volume in six months. If we look at its price history over the past six months, we can see that it made many attempts to break the 4000 mark upward. However, aside from one instance above 3950, it was unable to close above 3950-4000.
Coforge overcame the previous barrier of 3950 and decisively closed above the crucial resistance range of 3950–4000 as a result of a global surge in technology stocks. It is currently trading significantly above the 50-day and 200-day simple moving averages (3606.77 and 3915.90 respectively). The next immediate barrier for Coforge India will be the 4250 level.
Coforge is now expected to pass the next barrier of 4250 and can begin a journey towards 4600–4900 if the global market assists. Therefore, the first and second price targets we have predicted for Coforge India are 4600 and 4900, respectively, until December 2022.
