By Brijesh Bhatia
The January Futures and Options (F&O) expiry ended on a sour note, with the benchmark indices suffering a decline of nearly 500 points, or about 2%. This downturn marked a six-month low, with heightened fear on Dalal Street, particularly as mid-cap stocks faced severe selling pressure.
With the Union Budget set to be announced on 1st February 2025, there is a prevailing expectation that market volatility will spike in the coming days.
Also ReadTwo auto stocks to watch ahead of the RBI Policy
Note: The market is open on 1st February 2025
However, amid this backdrop of pessimism, there are always pockets of opportunity. Despite the broader market slump, three stocks are emerging as potential breakout candidates, poised to shine in the longer term.
1. SRF Ltd
SRF has captured the attention of many market participants, particularly because of a remarkable long-term chart pattern.
SRF weekly chart Source: TradePoint, Definedge Securities
On the weekly chart, the stock has broken out of a horizontal channel that lasted for an impressive 179 weeks, marking a multi-year consolidation phase. This breakout is particularly exciting due to the Fibonacci Time Cycle, as the stock broke out in the 179th week, which is closely related to the Fibonacci number of 178.60.
Interestingly, SRF achieved its highest-ever closing on 30th January 2025, and the stock is now poised to break its previous all-time high of ₹2,865. If the stock pushes through this resistance level, it could trigger a stellar rally, outperforming the benchmark indices and potentially rewarding investors with significant returns.
2. Zensar Technologies
Zensar Technologies is another stock showing strong bullish potential. On the weekly chart, Zensar has recently hit a new all-time high, continuing its impressive run.
Zensar Tech weekly chart Source: TradePoint, Definedge Securities
What stands out here is the volume action – the stock witnessed its highest weekly volumes since December 2023, indicating strong investor interest and confidence in the stock. Volume is often seen as a confirming indicator of price movements, and in this case, the surge in volume adds conviction to the bullish thesis.
Given the rally in the stock and increasing investor interest,
» Read More
