Radico Khaitan, TCS, Happiest Minds: 23 stks set to rise in a sideways mkt

Whenever it is uncertain to recognise the actual trend; whether it will rise or fall further, traders and investors prefer to stay on sidelines and wait for a clear trend to emerge. However, there are some who embrace these volatility and uncertain times as an opportunity to enter and hold on to stocks that are likely to outperform once the appropriate trend begins to materialise.

These stocks are nothing but the ones that show sideways or consolidation phase, holding to their respective support and showing resilience to cross the upward hurdle, called resistance. A consolidation phase mainly exhibits the crucial lower support , wherein the market participants prefer to enter and hold for required gains. Similarly, there are sellers who intent to short at specified levels that become a hurdle to conquer. 

During this struggle, the stock trades in a broad range of support and resistance and any assistance from the overall market may help to breakout firmly. Especially, when the overall market translates form a negative sentiment to a positive outlook, the consolidating stocks are expected to robustly breakout on the upside and vice versa. Such opportunities could lead up to 25 per cent gains in a very short period of time.

At current levels, the benchmark indices reflect a positive bias after a sharp decline in the recent times. If the same outlook stays firm for the upcoming sessions, then here is the list of consolidating stocks that may breakout on the upside.

Source: Spider Software