Breakout Stocks: How to trade Shree Cement & JK Cement after fresh 52-week highs

The Indian market failed to sustain momentum and closed in the red on Friday, tracking muted global cues.

The BSE Sensex declined nearly 200 points, while the Nifty50 managed to close above the 23,500 level.

Stocks that hit fresh 52-week highs included Shree Cement, which rose more than 1%, and JK Cement, which closed higher by 1.5%. BSE Ltd witnessed a price-volume breakout, surging over 16% on Friday.

The Indian market will remain closed on Monday due to a public holiday.

We spoke to an analyst about how investors should approach these stocks in the next trading session, purely from an educational standpoint:

Analyst: Harshita Darak, Technical Research Analyst at Bonanza.

BSE Ltd surged to a 52-week high, closing at Rs 5,479.80, with a massive gain of Rs 795.45 (+16.98%). A strong bullish Marubozu candle and a runaway gap-up opening indicate robust buying momentum.

The stock has decisively broken above key Fibonacci retracement levels, surpassing the 0.618 level at Rs 6,082.60, signaling potential for further upside. RSI at 64.13 shows increasing strength, while MACD confirms bullish momentum.

The breakout is backed by high volume, reinforcing the rally. Given the strong price action and momentum, a buy recommendation is placed at current levels with a target of Rs 5,750. Sustaining above Rs 5,400 will be crucial for continued bullish momentum.

Shree Cement has broken out of a rounding bottom pattern on the weekly timeframe, indicating accumulation at higher levels. The stock is expected to maintain its bullish trend as long as the Rs 29,000 level remains intact.

A notable surge in volume over the past few sessions further validates the strength of the current uptrend. From a moving average perspective, both the 20-day and 50-day EMAs have started trending upward, reinforcing the bullish sentiment.

Considering the alignment of price action with increased volume, the stock appears poised for further upside.

JK Cement Ltd reached a 52-week high, closing at Rs 4,932.65, with a gain of Rs 110.15 (+2.28%). The stock is trading within a rising wedge pattern, indicating either a trend continuation or a potential reversal.

A high-wave candle formation at resistance suggests indecision among traders. RSI at 59.66 is in neutral territory, reflecting moderate bullish momentum with the potential for a pullback.

Key resistance is at Rs 4,980—a breakout and sustained move above this level could trigger further upside toward Rs 5,200.

Given the current chart structure, an avoid recommendation is suggested at these levels, with a potential entry only above Rs 4,980, confirming bullish strength.

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)