KEC Intl, Macrotech: 5 Nifty 500 stocks that are on the verge of a breakout

KEC International and Shriram Transport Finance can soar up to 22 per cent, while Macrotech Developers, Gujarat Fluorochemicals and Godrej Consumer can rally up to 15 per cent, show charts.

The Nifty 500 index has surged over 7 per cent beating the BSE Sensex and Nifty 50 benchmarks, which gained around 5 per cent each during the recent market pullback. 

The Nifty 500 had dipped a low of 12,855 in June 2022 and currently hovers 7.3 per cent higher from its lows. The index came within striking distance of the 14,000-mark last week, reaching a high of 13,905.

Select stocks like - Gujarat Fluorochemicals , one of the oldest chemical company clocked a new historic peak. KEC International, Macrotech Developers, Shriram Transport Finance Company and Godrej Consumer Products too recorded significant gains in the recent turnaround. 

The Nifty 500 index seems placed to trade with a positive bias going ahead, thus these five stocks too may perform well. Here’s a technical outlook of these stocks:-

KEC International Ltd (KEC)

Likely target: Rs 500 and Rs 550

Upside potential:  11% to 22%

KEC International broke out of the “Inverse Head and Shoulder” pattern, crossing the 200-day moving average (DMA), according to the daily chart. The positive surge points to a medium-term bullishness and may see a rally towards Rs 500 and Rs 550. The support for the stock can be expected at Rs 400; whereas the 200-DMA is presently placed at Rs 431. CLICK HERE FOR THE CHART

Macrotech Developers Ltd (LODHA)

Likely target: Rs 1,320 (Post breakout over 200-DMA)

Upside potential:  15%

Shares of Macrotech Developers firmly hold the support of 50-DMA, set at Rs 1,008 level. The stock trades above its 100-DMA and intends to conquer Rs 1,145, its 200-DMA hurdle. As and when this happens, the breakout rally could see Rs 1,300 to Rs 1,320 levels. The immediate support exists at Rs 1,053, its 100-DMA, shows the daily chart. CLICK HERE FOR THE CHART

Gujarat Fluorochemicals Ltd (FLUOROCHEM)

Likely target: Rs 3,500

Upside potential:  11%

Gujarat Fluorochemicals did violate the 200-DMA support, however soon regained ground and hit a new historic peak recently. This sentiment suggests a positive underneath tone and fresh upside rallies cannot be ruled out. Going ahead, as long as the stock holds ground above Rs 3,000 mark, the stock could see higher levels of Rs 3,500. The Moving Average Convergence Divergence (MACD) has convincingly crossed the zero line upward, igniting the positive momentum. ' CLICK HERE FOR THE CHART

Godrej Consumer Products Ltd (GODREJCP)

Likely target: Rs 1,000

Upside potential:  15%

Post making a base close to Rs 700 mark in June 2022, shares of Godrej Consumer Products are on the verge to concretely break obstacle of Rs 850, shows the daily chart. This momentum suggests a rally towards the Rs 1,000 mark, which seems to be the following resistance. Only a move beneath Rs 800 could negate the positive bias, shows the daily set-up. The volume scenario indicates a positive bias on the up move.  CLICK HERE FOR THE CHART

Shriram Transport Finance Co. Ltd (SRTRANSFIN)

Likely target: Rs 1,550

Upside potential:  22%

A short-term breakout of the “Double Bottom”, followed by “Inverse head and shoulder” up move, on the daily chart, shows a clean upward breakout. Going forward, until the support of Rs 1,125 is not broken aggressively, the bullish bias points to Rs 1,550 level. The MACD is successfully holding over the zero line, signalling a positive momentum.  CLICK HERE FOR THE CHART