Analysts have highlighted two breakout stocks — Jayaswal Neco Industries and Alkyl Amines — in the latest edition of the Economic Times' Market Trading Guide, citing bullish breakouts, strong trading volumes and improving momentum on the Relative Strength Index (RSI).

According to the recommendations, Jayaswal Neco Industries carries a target price of Rs 110, while Alkyl Amines has been assigned a target of Rs 2,250. Both stocks are trading above key moving averages, and the guide frames the pair as breakout candidates with upside targets of up to 10%. The feature's headline referenced Monday's session, while the accompanying analyst note was framed for Friday.

What the technical signals mean

A breakout describes a stock price moving above an established resistance level or trading range, typically accompanied by higher volume, which technical analysts read as confirmation of upward momentum. Under standard technical-analysis practice, a move back below the breakout level is generally treated as a failed breakout, which is why traders monitor subsequent sessions for volume follow-through. The RSI is a momentum oscillator that measures the speed and magnitude of recent price changes on a scale from 0 to 100, with readings above 70 traditionally interpreted as overbought and below 30 as oversold. Moving averages smooth price data over defined periods and are widely used to identify the direction of a trend, with the 50-day and 200-day lines among the most commonly tracked benchmarks. Picks grounded in chart setups of this kind are generally framed around shorter trading horizons than fundamental research, which typically evaluates companies over multi-year periods.

The companies

Jayaswal Neco Industries is a Nagpur-based manufacturer of steel and iron castings, supplying sectors such as automobiles, railways and engineering. Alkyl Amines Chemicals is an Indian specialty chemicals company that produces aliphatic amines and amine derivatives, with applications across industries including agrochemicals, pharmaceuticals and water treatment. Both companies are listed on India's National Stock Exchange and BSE.

The stock picks appeared in ETMarkets' regular Market Trading Guide feature, which publishes analyst recommendations based on technical setups. The recommendations and their target prices are those of the cited analysts and do not constitute investment advice from this publication.

Source: Economic Times Markets