2 Breakout Shares of Thursday to Put on Watchlist!

Thursday’s session was more or less a sideways one with the markets moving in both the green and the red territory. The benchmark index ended the session with a 0.16% uptick to 20,103.1 accompanied by a bullish sectoral breadth.

Here are a couple of stocks that remained on investors’ radar today and can possibly continue their upmove in the next few sessions.

Elgi Rubber Co Limited

ELGI Rubber Co Ltd (NS:) is in the business of manufacturing a range of raw materials, equipment, tools and accessories used in the rubber industry, having a market capitalization of INR 245 crore. The stock trades at a reasonable valuation, with a TTM P/E ratio of 21.17, and today, it jumped 18.13% to INR 58, delivering a clean breakout on the daily chart.

Image Description: Daily chart of Elgi Rubber Co with volume bars at the bottom

Image Source: Investing.com

As the stock surged past its resistance of INR 55.5, the volume figure also jumped to 1.77 million shares, which is a mammoth rise of over 1,900% from the 10-day average volume of 87.1K shares. As this is a micro-cap stock, the volatility in this counter is extremely high, and therefore conservative traders should steer clear of it. On the upside, the stock now seems to be heading towards INR 62.

IG Petrochemicals Limited

I G Petrochemicals Ltd (NS:) is a manufacturer and seller of specialty chemicals and has a market capitalization of INR 1,507 crore. The stock trades at a single-digit TTM P/E ratio of 9.75 and a decent dividend yield of 2.04%. The share price of IG Petrochemicals jumped 7.48% to INR 526.15 and rallied past the resistance of INR 523, on a closing basis.

Image Description: Daily chart of IG Petrochemicals with volume bars at the bottom

Image Source: Investing.com

The stock took a dive when the entire small-cap space witnessed profit booking on Tuesday but also recovered handsomely from the lows. Today’s sharp rally was also backed by a heavy volume of 338.1K shares which is the highest one-day figure in around 1.5 months. Because of a sharp V-shaped recovery, the exit levels are deep, therefore position size can be adjusted accordingly to minimize the risk. On the upside, the stock seems geared up for INR 555.

Thank you to all who attended yesterday’s webinar by Aayush Khanna. Those of you who missed the session can access the full recording here: https://shorturl.at/rHQYZ.

Remember, the once-in-a-lifetime offer of a 65% discount on InvestingPro+ via the coupon code PROW629 is only valid till 30th September 2023 and for new subscriptions only.