Breakout stocks to buy or sell: Following weak global cues ahead of the US Fed meeting outcome, the Indian stock market ended lower for the third straight session on Wednesday. The Nifty 50 index went off 122 points and closed at the 24,213 mark, the BSE Sensex shed 446 points and finished at 80,237, while the Nifty Bank index crashed 639 points and ended at 52,195. NSE cash market volumes were lower by 3% as compared to Tuesday. The Nifty Mid-cap 100 and the Small-cap 100 index continued their southward journey for the second day, falling by 0.64% and 0.87%, respectively.
Sumeet Bagadia’s breakout stock recommendations
Sumeet Bagadia, Executive Director at Choice Broking, believes that overall Indian stock market bias is cautious as the Nifty 50 index has decisively broken below the 50-DEMA zone. However, the 50-stock index is above its crucial support at 24,100. So, one can expect a trend reversal until this support is breached. The Choice Broking expert said that Nifty is facing an immediate hurdle at 24,450 to 24,500, but a fresh bull trend can be expected on Dalal Street only when the frontline index breaks above 24,800 on a closing basis. He advised a stock-specific approach and suggested looking at breakout stocks for intraday trading.
Speaking on the outlook for the Indian stock market today, Sumeet Bagadia said, “Overall, the Indian stock market bias is cautious as the Nifty 50 index has failed to close above its 50-DEMA mark, which it had lost on Tuesday. However, the frontline index is sustaining above its crucial support of 24,100, which augurs well for an expected trend reversal. However, the 50-stock index faces an immediate hurdle at 24,450 to 24,500. The Indian stock market is expected to remain sideways until it breaks above 24,800 on a closing basis. So, it is better to maintain a stock-specific approach focusing on breakout stocks for intraday trading.”
Regarding breakout stocks to buy today, Sumeet Bagadia recommended buying these five shares: ACE, KPR Mill, Westlife Foodworld, Radico Khaitan, and Clean Science and Technology.
Stocks to buy today
1] ACE: Buy at ₹1502.80, target ₹1608, stop loss ₹1450;
2] KPR Mill: Buy at ₹1128.50, target ₹1208, stop loss ₹1089;
3] Westlife Foodworld: Buy at ₹836.20, target ₹895, stop loss ₹806;
4] Radico Khaitan: Buy at ₹2553.20, target ₹2730, stop loss ₹2464; and
5] Clean Science and Technology: Buy at ₹1471.15, target ₹1574, stop loss ₹1420.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
