The US market index, Dow Jones, is trading at an all-time high. But back home, the Indian benchmarks have been moving with far less enthusiasm. The broad indices have not mirrored the sharp uptrend like US markets. However, certain individual stocks are showing remarkable strength and breaking past multi-year resistance zones.
Nykaa – Entering a Fresh Phase of Growth
FSN E-Commerce Ventures, popularly known as Nykaa, has emerged as one of India’s leading online beauty and fashion retailers. The stock listed at around Rs. 336 and quickly scaled to Rs. 428.95 in 2021. But what followed was a painful correction that saw the stock erode nearly 70 per cent of its value, bottoming out at Rs. 114.25.
Nykaa Weekly Chart
The low in April 2023 marked a classic “shakeout” phase as per the Wyckoff theory, signalling that the weaker hands exited in fear and smart traders can accumulate the stock. Since then, the price has been gradually climbing back, trading in a tight band of Rs. 155-229. This period of sideways movement has now given way to a decisive breakout.
The stock has convincingly crossed above the Rs. 230 mark, which was acting as a multi-year resistance since November 2022. As per Wyckoff’s framework, this signals the transition into Phase E, the phase of a potential fresh rally, making Nykaa a stock to keep on the radar.
Lemon Tree Hotels – A New High After Patience
Lemon Tree Hotels is one of the largest mid-priced hotel chains in India, catering to both business and leisure travellers.
Lemon Tree Weekly Chart
On the technical front, the stock had been stuck in a long consolidation phase, oscillating between Rs. 115 and Rs. 160 for nearly 68 weeks.
Finally, the stock has delivered a fresh all-time high by moving past the upper boundary of the consolidation and hitting Rs. 174.90. For positional traders, the breakout indicates potential bullish momentum and trend resumption in the stock.
L&T Finance Holdings – Resumption of an Uptrend
LTF Weekly Chart
From a low of Rs. 58.50 in March 2022, L&T Finance Holdings staged a massive rally to Rs. 194.25 by July 2024. However, the stock faced a hurdle at Rs. 200 mark, leading to a year-long consolidation, during which the price slipped to Rs. 129. As traders lost interest, the stock meandered between Rs. 130 and Rs. 190, frustrating many.
But the story took a sharp turn when the stock finally pierced the Rs. 200 hurdle, surging to Rs. 214 and even retesting the breakout zone successfully. The move towards Rs. 225 signals the potential bullish trend resumption, suggesting that LTF may have more steam left in the tank.
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While the Nifty50 hovers around 25,000, individual stocks are quietly breaking out from multi-year resistances, often marking the beginning of structural uptrends.
- Nykaa has signalled the start of a new phase as per Wyckoff theory.
- Lemon Tree Hotels has broken free from more than a year of consolidation to register a new high.
- L&T Finance Holdings has crossed a crucial psychological level of Rs. 200, resuming its uptrend with conviction.
Disclaimer
Note: The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Kiran Jani has over 15 years of experience as a trader and technical analyst in India’s financial markets. He is a well-known face on the business channels as Market Experts and has worked with Asit C Mehta, Kotak Commodities, and Axis Securities. Presently, he is Head of the Technical and Derivative Research Desk at Jainam Broking Limited.
Disclosure: The writer and his dependents do not hold the stocks discussed here. However, clients of Jainam Broking Limited may or may not own these securities.
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