3 Breakout Stocks for Swing Trading This Week: 17 August 2026

Three stocks are showing strong technical setups after moving above key resistance levels or testing major breakouts. Vardhman Special Steels, Manorama Industries and Ajanta Pharma have seen buying interest along with higher volumes. 

Here’s a look at the technical setup of these breakout stocks for tomorrow, along with their business performance and key levels to watch.

Breakout Stocks for Tomorrow

Here are some breakout stocks for today that traders can study. 

1. Vardhman Special Steels (CMP: ₹353) 

Note: The chart is as of 17th August 2026 and is shared only for educational purposes. It should not be considered an investment recommendation.

Technical View 

Vardhman Special Steels has given a strong breakout on the weekly timeframe by crossing the ₹344 resistance zone, which had remained intact since June 2024. The stock broke above this level this week with a long-tail green candle, indicating strong buying support at lower levels and strong momentum. 

Rising volumes further support the breakout. Its Relative Strength (RS) against the BSE 500 has turned positive, reflecting improving momentum and the potential for continued outperformance.

Business Overview 

Vardhman Special Steels is a producer of special and alloy steels, manufacturing billets, steel bars, rods, and bright bars primarily for automotive applications. The company operates an integrated plant in Ludhiana with a 3,00,000 TPA steel melting capacity and caters to over 200 marquee clients, including Toyota, Maruti Suzuki, and Hyundai. 

Backed by Japan’s Aichi Steel Corporation (holding a 24.90% stake), VSSL is setting up a ₹2,000 crore greenfield plant in Punjab (5,00,000 MTPA billet capacity) slated for FY30 to diversify into wire rods and non-automotive segments.

Financial Performance 

Vardhman Special Steels has delivered steady financial compounding, with sales and profit growing at 10% and 37% CAGR, respectively, over the last 10 years. The company maintains a 5-year average ROE of 14%. The stock has generated a 21% CAGR over five years and a 38% return over the past year. FIIs and DIIs held 0.55% and 3.27%, respectively, as of June 2026.

2. Manorama Industries (CMP: ₹1,737) 

Note: The chart is as of 17th Aug 2026 and is shared only for educational purposes. It should not be considered an investment recommendation.

Technical View 

Manorama Industries is on the verge of a major weekly breakout as it approaches the critical ₹1,740 resistance zone, which has remained intact since July 2025. The stock formed a strong, long green candle this week supported by expanding volumes, signaling robust accumulation and buying pressure.

Its Relative Strength (RS) against the BSE 500 has turned positive, indicating improving momentum and setting the stage for strong follow-through upside once the key hurdle is decisively crossed.

Business Overview 

Manorama Industries is a manufacturer of Sal fat and India’s top exporter of Sal and Mango-based specialty fats and butters. Operating on a "Waste to Wealth" model, it produces Cocoa Butter Equivalents (CBE) and specialty butters for marquee global giants including Ferrero Rocher, Mondelez, and L'Oréal. 

The company operates an integrated plant in Birkoni, Chhattisgarh, with international markets contributing 73% of 9MFY25 revenue. Its 2026–2031 roadmap includes expanding into industrial chocolate compounds and setting up a solvent extraction facility in Burkina Faso, Africa.

Financial Performance 

Manorama Industries has delivered strong growth, with sales compounding at 26% and 46% CAGR over 10 and 5 years, respectively. Profit has compounded at 70% over 10 years and 74% over five years. 

The company maintains superior profitability with a 5-year average ROE of 25% and 40% in the latest year. The stock has generated a 41% CAGR over five years and a 26% return over the past year. FII and DII holdings stood at 3.22% and 2.63%, respectively.

READ THIS ALSO: 3 Breakout Stocks for Swing Trading This Week (10th August 2026)

3. Ajanta Pharma (CMP: ₹3,673)  

Note: The chart is as of 17th Aug 2026 and is shared only for educational purposes. It should not be considered an investment recommendation.

Technical View 

Ajanta Pharma has given a decisive breakout on the weekly timeframe after crossing the major ₹3,500 resistance level, which had capped upside since September 2024. Following six weeks of tight consolidation below the hurdle, the stock surged this week with a long green candle backed by rising volumes. 

Business Overview 

Ajanta Pharma is a specialty pharmaceutical company focused on branded generics and quality finished dosages across India, the US, Asia, and Africa. India (30% of sales) is heavily driven by chronic therapies like cardiology and ophthalmology, supported by a 3,750-strong medical representative field force. 

US generics segment grew 49% in FY26. The company operates seven manufacturing facilities in India (including two US FDA-approved sites) and commits ~5% of annual revenues to R&D.

Financial Performance 

Ajanta Pharma has shown consistent financial performance, with sales compounding at 12% and 14% over 10 and 5 years, respectively (20% TTM). Profit compounded at 10% over 10 years, 12% over 5 years, and 24% over three years (22% TTM). 

The company maintains strong return ratios with a 5-year average ROE of 23% and 27% last year. The stock has delivered a 19% CAGR over five years and a 37% return over the past year. DII and FII holdings stood at 21.80% and 7.68%, respectively.

Conclusion 

These three breakout stocks have shown strong technical setups with breakouts or consolidation resolutions near multi-month resistance zones, backed by rising volume and positive Relative Strength against the BSE 500. 

Vardhman Special Steels benefits from auto-alloys expansion and global OEM backing, Manorama Industries is driven by global confectionery CBE demand, and Ajanta Pharma shows strong US and domestic formulation momentum.