Breakout Watch: SEBI Analyst Recommends Bajaj Finance, Shriram Finance, And Kotak Bank

Three financial heavyweights, Bajaj Finance, Shriram Finance, and Kotak Mahindra Bank, are showing strong breakout patterns on the charts. SEBI-registered analyst Financial Sarthis flagged three stocks to watch for the week ahead, as they have formed a solid base supported by healthy volume trends.

Bajaj Finance

Financial Sarthis said Bajaj Finance has shown a pattern of breakout, retest, and consolidation near its highs. The stock also saw a massive surge in volumes during the breakout phase, followed by a healthy contraction during the retest. This is considered a sign of underlying strength. 

A move above ₹1,040 could indicate a continuation of the breakout phase. Their verdict is that a strong base a formed, suggesting the stock is poised for the next leg of the rally. 

Bajaj Finance shares have rallied 50% year-to-date (YTD).

Shriram Finance 

According to the analyst, the stock showed signs of a range breakout with sideways consolidation occurring near the upper band. Shriram Finance saw good volumes on the breakout candle, while volumes tapered off during the consolidation phase, which is typically a sign of a bullish setup. 

A sustained move above ₹675 is likely to trigger a meaningful move, as the stock appeared to be coiling up for a potential breakout burst.

Shriram Finance shares have rallied 15% year-to-date (YTD)

Kotak Mahindra Bank 

Kotak Mahindra Bank has completed its gap-filling process and was consolidating around a key resistance zone. This rally was supported by increasing volumes, followed by a sideways movement with lower volumes, which is a sign of a healthy pause before a possible next leg. 

According to Financial Sarthis, traders can look to enter above ₹2,160, with support at ₹2,085 and resistance at ₹2,220 and ₹2,280. Technicals show that the stock’s next move could prove decisive.

Kotak Mahindra Bank shares have rallied 20% year-to-date (YTD)

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