Equity markets in India have witnessed a roller-coaster ride thus in February, with the
Nifty 50 index swinging in a near 1,800-point range. The Nifty thus far has touched a high of 26,341, and a low of 24,572 this month.
As of date, the Nifty holds a steady 1.3 per cent gain. In comparison, the
Nifty MidCap 150 and the
Nifty SmallCap 250 indices were up 2.5 per cent and 2.2 per cent, respectively.
The recent quarterly results and stock-specific news flow have triggered sharp moves in select counters. As such, Om Mehra, technical research analyst at SAMCO Securities highlights that Torrent Pharmaceutical and Graphite India have witnessed a breakout on the charts, while AU Small Finance Bank is attempting a breakout.
On the NSE thus far in February, Torrent Pharmaceuticals and Graphite India have rallied 7.9 per cent and 11.7 per cent, respectively; while AU Bank has gained 2.4 per cent.
Here's why Om Mehra is bullish on the above mentioned 3 stocks:
Torrent Pharmaceuticals
Current Market Price: ₹4,250
Torrent Pharmaceuticals has delivered a strong breakout above the ₹4,200 resistance zone and is now trading near its 52-Week high, marking a continuation of the broader uptrend, highlights Om Mehra of SAMCO Securities.
"The structure remains positive, with a clear sequence of higher-highs and higher-lows, while price continues to respect the rising trend line visible since October. The stock is comfortably placed above its 50-day average near ₹4,014, highlighting the strength of the on-going move," explains Mehra.
As long as the stock holds above ₹4,150, buy on dips remains favourable, with an expected move toward ₹4,400–₹4,550 in the near term, reckons the analyst. This implies a potential upside of 7 per cent from here.
Graphite India
Current Market Price: ₹689
Graphite stock has delivered a decisive breakout above the long-standing resistance zone near ₹640–₹650, which had capped the stock for several months. The recent surge marks a clear higher-high, confirming continuation of the broader upward trend that began from the December lows near ₹530, says Mehra.
"The breakout emerged after a prolonged rectangular consolidation between ₹520 and ₹610, with the expansion in price range suggesting fresh momentum. The MACD remains in positive territory at 2.76, with both lines holding above zero, supporting trend continuation," explains the analyst from SAMCO Securities.
As long as the stock sustains above ₹640, buy on dips remains favourable, with an expected move toward ₹710–₹730 in the near term, adds Mehra.
AU Small Finance Bank
Current Market Price: ₹999
Meanwhile, Mehra reckons that
AU Small Finance Bank (AU Bank) is another stock, which should be on investors' radar as it may witness a breakout in the near-term.
"The stock is consolidating within a symmetrical triangle formation on the daily chart, reflecting compression after a volatile phase. The pattern suggests that a decisive move is likely in the coming sessions. The ₹980–₹990 zone has held well as support, while ₹1,040–₹1,050 remains the immediate resistance to watch," explains Mehra.
A breakout above ₹1,050, accompanied by strong volumes, could open the path toward ₹1,060–₹1,090, believes Mehra. This translates into a potential gain of 9.1 per cent from current levels.
Disclaimer: The views expressed by the brokerage/ analyst in this article are their own and not those of the website or its management. Business Standard advises users to check with certified experts before taking any investment decisions. 
 "AU Bank, Torrent Pharma among 3 breakout stocks; strategy, key levels here")
