Breakout stocks to buy or sell: Following the hawkish US Fed outlook on the interest rate cut and FIIs’ selling, the Indian stock market snapped its four-week winning streak. The key benchmark indices erased their four-week gains in the week gone by. The Nifty 50 index slipped from 23,768 to 23,587, logging a weekly loss of 1,181 points. The BSE Sensex crashed from 82,133 to 78,041 levels, recording over 4,000 points loss last week. Likewise, the Nifty Bank index crashed from 53,583 to 50,759, logging a weekly loss of 2,824 points last week.
In this stock market crash, the Nifty 50 index broke below its 200-DEMA support, placing at 23,800, which may have boosted the morale of Indian stock market bears. In this bear-hit market, the Nifty 50 index is close to its recent swing low of 23,250, and bets are high on whether this support will remain sacrosanct or the 50-stock Index will touch a new low.
Sumeet Bagadia’s breakout stock recommendations
Sumeet Bagadia, Executive Director at Choice Broking, believes that overall Indian stock market bias has weakened as the Nifty 50 index has slipped below 200-DEMA support of 23,800 on a closing basis. The Choice Broking expert said that investors must remain extra cautious as the 50-stock Index may try to come close to its recent swing lower range of 23,250. Bagadia noted that the market may sell extensively if the frontline index breaks below 23,250. However, in the case of a trend reversal, Nifty may face a substantial hurdle at the 23,800 mark. A bullish or bearish trend can be assumed on the breakage of either side of the current range. He advised day traders to maintain a stock-specific approach and look at breakout stocks for intraday trading.
Sumeet Bagadia recommended buying the following five breakout stocks today: UCAL, Times Guaranty, Techno Electric & Engineering Company, Cartrade Tech, and Emmbi Industries.
Stocks to buy today
1] UCAL: Buy at ₹215, target ₹227, stop loss ₹207;
2] Times Guaranty: Buy at ₹186.88, target ₹200, stop loss ₹180;
3] Techno Electric & Engineering Company: Buy at ₹1625.15, target ₹1725, stop loss ₹1560;
4] Cartrade Tech: Buy at ₹1616, target ₹1717, stop loss ₹1555; and
5] Emmbi Industries: Buy at ₹156.43, target ₹170, stop loss ₹150.
Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.
