Last Updated on Dec 4, 2024 by Anjali Chourasiya
When you are navigating the world of stock trading, you may often come across terms like “breakout stocks” and “high volume.” These concepts are integral to understanding how the market operates and identifying potential opportunities. Breakout stocks, also known as stocks near breakout, are a specific category of stocks that experience a significant price movement after breaking through a certain price level or trading range. Due to their potential to yield significant profits within a short timeframe, these stocks capture the interest of traders and investors. In this article, let’s look at the top breakout stocks with high volume near their 52-week high and low, along with deeply exploring the concept of breakout stocks, key indicators, strategies, and common pitfalls.
Table of Contents
Breakout Stocks With High Volume
| Name | Sub-Category | Market Cap (Rs. in cr.) | Close Price (Rs.) | PE Ratio | % Away From 52W High | % Away From 52W Low | Daily Volume |
| EFC (I) Ltd | Distributors | 3,091.38 | 621.05 | 53.31 | 2.73 | 104.90 | 168,418.00 |
| Ami Organics Ltd | Pharmaceuticals | 9,247.91 | 2,259.20 | 216.33 | 2.71 | 124.92 | 177,302.00 |
| Artemis Medicare Services Ltd | Business Support Services | 4,661.28 | 338.75 | 94.88 | 2.64 | 139.74 | 337,194.00 |
| Transformers and Rectifiers (India) Ltd | Heavy Electrical Equipments | 15,309.96 | 1,020.10 | 344.04 | 2.44 | 470.84 | 300,927.00 |
| Kfin Technologies Ltd | Business Support Services | 20,843.87 | 1,213.70 | 84.71 | 2.43 | 166.02 | 749,249.00 |
| Lloyds Metals And Energy Ltd | Iron & Steel | 55,263.56 | 1,069.35 | 44.46 | 2.38 | 103.34 | 552,527.00 |
| Va Tech Wabag Ltd | Water Management | 11,572.08 | 1,862.05 | 47.12 | 2.34 | 223.75 | 436,488.00 |
| Choice International Ltd | Investment Banking & Brokerage | 10,814.32 | 542.40 | 82.64 | 2.32 | 152.40 | 351,631.00 |
| Black Box Ltd | Software Services | 11,643.40 | 692.75 | 84.57 | 2.28 | 230.20 | 892,419.00 |
| R & B Denims Ltd | Textiles | 910.17 | 101.16 | 48.72 | 1.69 | 204.15 | 189,997.00 |
Note: The 52 week high breakout stocks are filtered using Tickertape Stock Screener on 4th December 2024. Below-mentioned filters are used to get the list of breakout stocks with high volume.
- Close Price: Above 10 – Set the lower limit to 10
- % Away from 52-Week High: Set to Near 52WH – Sort from highest to lowest
- % Away from 52-Week Low: Set the lower limit to 100
- Daily Volume: Set to High
Note that these stocks are in no order of preference. Please note that these stock selection criteria and the stocks are provided for informational purposes only; it is essential to conduct your own research.
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Details of the High Volume Breakout Stocks
EFC (I) Ltd
EFC (I) Ltd operates in the distributors’ sub-category, providing robust distribution and supply chain solutions across diverse sectors. Its consistent performance and growing volumes make it a candidate for breakout strategy considerations.
As of 4th December 2024, EFC (I) Ltd has a market capitalisation of Rs. 3,091.38 cr. and a close price of Rs. 621.05. The stock trades at a PE ratio of 53.31 and is 2.73% away from its 52-week high. It is 104.90% above its 52-week low, with a daily volume of 168,418 shares.
Ami Organics Ltd
Ami Organics Ltd, a pharmaceutical company focusing on specialty chemicals, advanced intermediates, and APIs, is often observed in the context of a breakout strategy due to its market activity.
As of 4th December 2024, Ami Organics Ltd has a market capitalisation of Rs. 9,247.91 cr. and a close price of Rs. 2,259.20. The stock trades at a PE ratio of 216.33, 2.71% below its 52-week high and 124.92% above its 52-week low. It has a daily volume of 177,302 shares.
Artemis Medicare Services Ltd
Artemis Medicare Services Ltd operates in business support services, delivering healthcare services through its hospitals and related operations. Its stock is being monitored for breakout strategy opportunities.
As of 4th December 2024, Artemis Medicare Services Ltd has a market capitalisation of Rs. 4,661.28 cr. and a close price of Rs. 338.75. The stock trades at a PE ratio of 94.88, 2.64% below its 52-week high, and 139.74% above its 52-week low. It has a daily volume of 337,194 shares.
Transformers and Rectifiers (India) Ltd
Transformers and Rectifiers (India) Ltd specialises in heavy electrical equipment manufacturing, catering to various industrial needs. It is being analysed under breakout trading strategies due to its high trading volumes.
As of 4th December 2024, Transformers and Rectifiers (India) Ltd has a market capitalisation of Rs. 15,309.96 cr. and a close price of Rs. 1,020.10. The stock’s PE ratio is 344.04, and it is 2.44% away from its 52-week high. It is 470.84% above its 52-week low, with a daily volume of 300,927 shares.
Kfin Technologies Ltd
Kfin Technologies Ltd, a business support services company, provides financial services including registry and transfer agency solutions. It has been identified among stocks near breakout with high volume.
As of 4th December 2024, Kfin Technologies Ltd has a market capitalisation of Rs. 20,843.87 cr. and a close price of Rs. 1,213.70. The stock trades at a PE ratio of 84.71, 2.43% below its 52-week high, and 166.02% above its 52-week low. It has a daily volume of 749,249 shares.
Lloyds Metals and Energy Ltd
Lloyds Metals and Energy Ltd operates in the iron and steel industry, producing steel products and utilising energy-efficient processes. The stock is under observation for high volume breakout strategies.
As of 4th December 2024, Lloyds Metals and Energy Ltd has a market capitalisation of Rs. 55,263.56 cr. and a close price of Rs. 1,069.35. It trades at a PE ratio of 44.46, 2.38% below its 52-week high, and 103.34% above its 52-week low. The daily volume stands at 552,527 shares.
Va Tech Wabag Ltd
Va Tech Wabag Ltd is a water management company offering wastewater treatment and water resource solutions. It is considered a technical breakout stock based on its trading volumes and price action.
As of 4th December 2024, Va Tech Wabag Ltd has a market capitalisation of Rs. 11,572.08 cr. and a close price of Rs. 1,862.05. The stock trades at a PE ratio of 47.12, 2.34% below its 52-week high, and 223.75% above its 52-week low. The daily volume is 436,488 shares.
Choice International Ltd
Choice International Ltd operates in investment banking and brokerage, providing financial advisory and investment management services. The stock is seen among stocks near breakout levels.
As of 4th December 2024, Choice International Ltd has a market capitalisation of Rs. 10,814.32 cr. and a close price of Rs. 542.40. It trades at a PE ratio of 82.64, 2.32% below its 52-week high, and 152.40% above its 52-week low. The daily volume is 351,631 shares.
Black Box Ltd
Black Box Ltd is a software services company delivering IT solutions and systems integration for businesses. It is tracked as a potential high volume breakout stock.
As of 4th December 2024, Black Box Ltd has a market capitalisation of Rs. 11,643.40 cr. and a close price of Rs. 692.75. The stock trades at a PE ratio of 84.57, 2.28% below its 52-week high, and 230.20% above its 52-week low. Its daily volume is 892,419 shares.
R & B Denims Ltd
R & B Denims Ltd operates in the textiles industry, focusing on denim fabric manufacturing and distribution. It is part of range breakout stock analyses due to recent trading patterns.
As of 4th December 2024, R & B Denims Ltd has a market capitalisation of Rs. 910.17 cr. and a close price of Rs. 101.16. The PE ratio is 48.72, with the stock 1.69% below its 52-week high, and 204.15% above its 52-week low. The daily volume is 189,997 shares.
What Are Breakout Stocks?
Before we jump to understanding the meaning of breakout stocks, let us grasp the meaning of breakout.
What Is a Breakout in the Stock Market?
A breakout in the stock market occurs when the price of a stock moves above a resistance level or below a support level. Resistance levels are price points where a stock has historically faced selling pressure, preventing it from moving higher. It’s like a ceiling that the stock has repeatedly hit but hasn’t been able to break through. On the other hand, support levels act like a floor, where buying pressure has been strong enough to keep the stock from falling further.
When a stock’s price breaks above the resistance level, it might signal that the stock is gaining momentum, and traders might anticipate further upward movement. Similarly, when a stock breaks below a support level, it could indicate the potential for further decline. Breakouts can be identified using various technical indicators and tools, which helps traders spot these critical levels across multiple stocks.
Understanding Breakout Stocks
Now that you have an understanding of what a breakout is, let’s delve into breakout stocks. Breakout stocks are those that have recently moved beyond a critical price level, such as a resistance or support level, which might indicate the start of a new trend. For example, breakout stocks for tomorrow might include those that have just surpassed a key resistance level, suggesting the possibility of continued upward movement.
It’s important to remember that breakout stocks can involve both upward and downward movements. In some cases, a stock might break below a support level, which is referred to as a negative breakout. This kind of breakout might signal a potential downtrend. Traders often seek positive breakout stocks or bullish stocks for tomorrow, focusing on those that are expected to rise following a breakout. However, negative breakouts are also significant and may be of interest depending on a trader’s strategy.
Breakout stocks can offer potential opportunities, but they also come with risks. A breakout might not always lead to a sustained trend, and false breakouts can occur, where the price quickly reverses after briefly moving beyond a resistance or support level. This is why traders carefully analyse breakout stocks and use various tools, like a breakout stock screener, to identify potential candidates.
The Importance of High Volume in Breakouts
Volume plays a critical role in assessing the strength of a breakout. Volume measures the number of shares traded. When you observe a breakout occurring on low volume, it may be a sign that the move is not supported by significant buying or selling interest, which could result in a false breakout. Conversely, a breakout stock with high volume is often seen as more reliable, as it indicates strong participation from market participants.
Visual examples of high-volume breakouts can help clarify this concept. Imagine a stock trading within a tight range for several weeks, then suddenly breaking out with a sharp increase in volume. This scenario suggests the market has noticed the stock, and the price may continue to rise, supported by the strong volume. This confirmation is vital for traders looking to capitalise on breakouts while minimising the risk of false signals.
How to Find Out Breakout Stocks? – Key Indicators
To spot breakout stocks effectively, traders use several key technical indicators that signal when a breakout might occur:
Moving Averages
Moving averages, such as the 50-day and 200-day averages, smooth out price data to reveal trends. A breakout occurs when a stock’s price crosses above or below these averages. For example, a stock breaking above its 50-day moving average with high volume can indicate the start of a bullish trend. Conversely, a break below the 200-day moving average might signal a bearish breakout.
Relative Strength Index (RSI)
RSI measures the speed and change of price movements, indicating whether a stock is overbought or oversold. An RSI above 70 signals overbought conditions, which can precede a bullish breakout, while an RSI below 30 indicates oversold conditions, possibly leading to a bearish breakout. Divergences between RSI and price action can help anticipate breakouts.
Bollinger Bands
Bollinger Bands measure a stock’s volatility and potential breakout points. These bands, plotted above and below a moving average, tighten during low volatility, signalling a potential breakout. A breakout is often confirmed when the stock price moves outside the bands on high volume, indicating a new trend.
Volume Oscillators
Volume oscillators like the On-Balance Volume (OBV) and Chaikin Money Flow (CMF) help confirm breakout strength. A rising OBV during a breakout suggests strong accumulation, while a positive CMF indicates money flowing into the stock, both of which support the breakout’s credibility.
By combining these indicators with volume analysis, you can more effectively identify and confirm breakout stocks.
Strategies for Trading Breakout Stocks With High Volume
Trading breakout stocks with high volume can be a highly effective breakout trading strategy if executed properly. To help you navigate this approach, let’s break down the process into three essential areas: pre-breakout setup, entry and exit points, and risk management.
Pre-Breakout Setup
Identifying stocks near breakout is the first step in this strategy. You can use tools like a technical breakout stock screener to find stocks at breakout level approaching key resistance or support levels. Technical indicators such as moving averages, RSI, and Bollinger Bands can also help identify potential breakout patterns. Additionally, tracking 2-week high breakout stocks and low price high volume stocks may alert you to ready to breakout stocks with high volume that are gaining momentum before they break out.
Setting up alerts is another crucial component of the pre-breakout setup. Most trading platforms allow you to set price alerts for near breakout stocks. Volume alerts are equally important as they notify you of a spurt in volume, which often precedes a breakout. By being prepared, you can act quickly when near to breakout stocks show signs of making a move.
Entry and Exit Points
Once a breakout is confirmed by positive breakout with high volume stocks, determining the optimal entry point becomes essential. The entry point is typically when a stock moves beyond a key price level, such as a resistance or support level.
To manage your risk, it can be helpful to set a point where you’re willing to sell if things don’t go as planned. This is where the concept of stop-loss comes into play. A stop-loss is a predetermined price at which you decide to sell a stock to prevent further losses. This can be helpful in managing risk, especially if the stock’s movement doesn’t go as expected.
As for when to sell, you might watch how the stock is behaving. You can monitor the stock’s price and volume closely. This is where you must understand the concept of exit point. Exit points come into play when you’re considering selling a stock after it has moved in your favour. Keeping an eye on the stock’s behaviour, including any changes in price or trading activity, can provide clues about when it might be time to sell.
Risk Management
Risk management is crucial when trading 52-week high breakout stocks with high volume, given the inherent volatility in these trades. One key aspect is proper position sizing. You may want to risk only a small percentage (e.g., 1-2%) of your total capital on any single trade to ensure that no single loss can significantly impact your overall portfolio.
Portfolio diversification is another essential element of risk management. Instead of concentrating all your capital on one or two range breakout stocks, consider spreading your investments across multiple stocks or sectors. This diversification can help mitigate risk by reducing the impact of any one trade that goes against you.
Successful risk management often involves disciplined adherence to stop-loss levels and position sizing. Traders who focus on managing their risks are more likely to achieve long-term success, even if some trades do not turn out as expected.
Additional Considerations
When executing an intraday breakout trading strategy, you can observe 15-minute breakout stocks with high volume for quick opportunities. Studying types of breakout patterns, such as flag or triangle formations, can improve your ability to identify promising trades. Understanding what is breakout trading and recognizing a breakout trade setup may also help you gain confidence in applying a robust trading strategy.
Using tools and methods for how to find breakout stocks and how to identify breakout stocks can significantly streamline the process of discovering stocks that fit your strategy. Focusing on best breakout stocks or stocks breaking a 52-week high breakout can be especially helpful for traders seeking high momentum opportunities.
Common Pitfalls in Trading Breakout Stocks
Trading breakout stocks with high volume can be profitable, but it’s important to avoid common pitfalls. One of the most frequent mistakes is chasing a breakout too late. Entering a trade after the stock has already moved significantly can reduce your profit potential and increase the risk of a pullback. To avoid this, one might aim to enter at an early stage of the breakout with strong volume confirmation, such as in high volume and price breakout stocks or 15-minute breakout stocks with high volume.
False breakouts are another significant risk. These occur when a stock briefly moves beyond a resistance or support level but quickly reverses. To minimise the chances of getting caught in a false breakout, wait for confirmation through high volume, and consider starting with a smaller position to test the breakout’s validity. Watching 2-week high breakout stocks or using a near breakout stocks screener can help identify stronger opportunities.
Emotional trading is another common challenge. The excitement of a potential big win can lead to impulsive decisions, such as entering trades without proper analysis or holding onto losing positions too long. For example, while trading 52-week high breakout stocks or analyzing a break out stock, you might make errors if you don’t follow your plan. It is important to stick to a trading plan with predefined rules for entry, exit, and stop-loss levels to manage these emotions effectively. Tools like technical breakout stocks or tracking 15 min breakout with high volume setups can support disciplined trading.
To Conclude
Trading breakout stocks with high volume offers the potential for significant profits, but it requires careful planning and disciplined execution. By focusing on pre-breakout setups, timing your entry and exit points carefully, and employing solid risk management strategies, you can increase your chances of success. However, it’s equally important to avoid common pitfalls, such as chasing late breakouts, falling for false breakouts, and letting emotions dictate your trading decisions. With the right strategies and mindset, you can navigate the complexities of breakout trading and work towards achieving your financial goals.
FAQs About Breakout Stocks With High Volume
What is the importance of 52-week high and low in breakout stocks?
The 52-week high and low indicate the highest and lowest prices a stock has reached in the past year. Approaching the 52-week high suggests potential for a breakout, while being well above the 52-week low shows recovery and strength. These levels help investors gauge momentum and risk.
What is the best time frame for trading breakout stocks?
The ideal time frame depends on your trading style. Intraday traders may use 5- or 15-minute charts, while swing traders often prefer daily or 4-hour charts. Shorter time frames offer quicker trades, while longer ones can capture more significant moves.
How do I avoid false breakouts?
To avoid false breakouts, look for breakouts confirmed by high volume and use additional indicators like moving averages. Patience is key—wait for a clear signal before entering a trade. Alternatively, consulting a professional before proceeding can also be worthwhile.
Can breakout trading be automated?
Yes, breakout trading can be automated using trading bots or algorithms. These tools can monitor specific criteria, like price levels and volume, to execute trades automatically.
Are breakout stocks suitable for beginners?
Breakout stocks can be suitable for beginners, but they require understanding of technical analysis and risk management. Novice traders should start with small positions and practice on a demo account to gain experience. Remember, it is always worthwhile to consult a professional before putting any money in.
What are 15 minute breakout stocks?
15 minute breakout stocks are stocks that experience significant price movements within a 15-minute trading window, often breaking through key resistance or support levels. With stock near breakout, traders focus on this short timeframe to capitalise on rapid price changes and volatility.
How can I find 15 minute breakout stocks with high volume?
To find 15-minute breakout stocks with high volume, you can use the Tickertape Stock Screener. It allows you to filter stocks based on over 200 specific criteria, such as being near their 52-week high or low and having high daily trading volumes. Try it now!
As an insatiable reader and learner, I’ve spent the last two years exploring the world of finance. With my creative mind and curious spirit, I love making complex finance topics easy and fun for everyone to understand. Join me on my journey as we navigate the world of finance together!
