The analyst highlights key levels and technical indicators signaling potential upside moves in both stocks.
SEBI-registered analyst Kavita Agrawal has flagged two stocks for a potential breakout. Dixon Technologies and Tata Elxsi appear poised for further upside, as indicated by their technical charts.
1. Tata Elxsi
On June 28, Tata Elxsi shares showed signs of a possible trend reversal on the 75-minute chart.
She highlighted that the recent downtrend appears to have paused, as no new lows were recorded, and showed the first signs of a relief rally. Agrawal pegged the 250-day exponential moving average (EMA) at ₹6,396 as the key level to watch for a breakout on Tata Elxsi.
Additionally, there is a positive divergence in the Relative Strength Index (RSI), which shows that momentum is building.
For traders considering a breakout setup, she recommended entering above ₹6,396 with a target at ₹7,600. The stop loss is set at ₹6,000, offering a solid risk-reward ratio of 3:4.
Data on Stocktwits shows that retail sentiment turned from ‘neutral’ to ‘bearish’ a day ago.
Tata Elxsi shares have fallen 7% year-to-date (YTD).
2. Dixon Technologies
Agrawal highlighted that Dixon Technologies shares witnessed a false breakout alert on June 28, as the stock failed to sustain its upmove and is now back at a strong support zone.
She recommends watching ₹15,000 for a breakout. A clean move above this level with strong volumes could trigger a fresh rally to ₹19,000 (a potential 36% upside based on historical trends), according to Agrawal.
Key factors to watch include a sustained breakout and a rise in volumes. Dixon remains on her swing watchlist, with a trading opportunity if the stock breaks out.
Data on Stocktwits shows that retail sentiment has remained ‘bullish’ for a week.
Dixon Technologies has gained 21% year-to-date (YTD).
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