As Nifty touches 22,000, here are 3 breakout stocks worth looking at

The Sensex and the Nifty were hovering close to their record highs on February 16 afternoon, powered by gains in auto and healthcare names.

At 12.34 pm, the Sensex was up 345.42 points or 0.48 percent at 72,395.80, and the Nifty was trading 124.70 points or 0.57 percent higher at 22,035.50.

Auto and healthcare indices were up a percent each, while the power index was down 0.3 percent. The broader market mirrored the benchmarks. The BSE midcap and smallcap indices advanced up to 1 percent.

Here are three breakout stocks exhibiting strong technical momentum that can be considered for the short term:

1. Syngene: Buy | LTP: Rs 765 | Stop-Loss: Rs 730 | Target: Rs 835

The Syngene scrip is showing a bullish continuation pattern. “Stock has retested 30 month breakout level which coincides with 100 period weekly moving average. Stock has formed the  base at support level indicating accumulation activity.  Based on bullish continuation technical set up, stock can be accumulated in the range of 765 to 755 with stop loss of 730. Upside potential can be upto 835, ” said Kapil Shah, Senior technical analyst at Emkay Global.

2. Federal Bank: Buy | LTP: Rs 164| Stop-Loss: Rs 155 | Target: Rs 190

According to Akshay Bhagwat, senior vice president of derivatives research,  JM Financial, Federal Bank has undergone a significant consolidation breakout at 150, with strong momentum. The stock is moving within an upside channel formation. Bhagwat suggests a target range of 175 to 190, with support at 155. He recommends setting a stop-loss at 149, with a timeframe of 8 to 10 trading sessions.

3. Tata Motors: Buy | LTP: Rs 940| Stop-Loss: Rs 918 | Target: Rs 975

Bhagwat said Tata Motors is exhibiting a robust uptrend. The surge in momentum has been substantiated by notable volume and active participation in the futures and options market. He favours riding the momentum with a target range extending up to 975, while emphasising a support level at 918. He suggests considering this strategy over a timeframe of one week.

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