Breakout stocks to buy or sell: After trading in a narrow range for four straight sessions, the Indian stock market finally witnessed intense selling pressure on Monday deals. The Nifty 50 index lost 152 points and closed at the 23,661 mark, the BSE Sensex shed 499 points and closed at 78,199, while the Nifty Bank index corrected 411 points and finished at 50,899. The NSE cash market volumes were higher by 77% compared to Friday last week based on a quarterly rejig of the Nifty 50 index. Amongst the sectoral Indices, Nifty Healthcare, Pharma, and IT gained the most, while Nifty Media, Reality and Metals were significant losers.
Sumeet Bagadia’s breakout stock recommendations
Sumeet Bagadia, Executive Director at Choice Broking, believes that Indian stock market bias has turned cautious after strong selling on Monday as the Nifty 50 index failed to break above 200-DEMA of 23,850. The Choice Broking expert said the 50-stock index has immediate support at 23,500, whereas it has made crucial support at 23,250. So, Nifty today is in a broader 23,250 to 23,850 range, and a bullish or bearish trend can be assumed on the breakage of either side of the range. He advised investors to maintain a stock-specific approach and avoid taking any bulk position until the Nifty 50 index breaks the hurdle placed at 23,850 on a decisive basis. Bagadia advised traders to look at breakout stocks for intraday trading.
Speaking on the outlook for the Indian stock market today, Sumeet Bagadia said, “The Indian stock market trend has turned cautious as the Nifty 50 index has once again failed to break the hurdle placed at 200-DEMA levels of 23,850. The index witnessed strong selling on Monday, but the immediate support for the 50-stock index is still at 23,500, while its crucial support is at 23,250. So, traders are advised to maintain stock-specific trade and look at those stocks that look strong on the technical chart. Buying breakout stocks for intraday trading can be a good option for day traders.”
Regarding breakout stocks to buy today, Sumeet Bagadia recommended buying these five shares: KNR Constructions, Universal Cables, Ashoka Buildcon, Bajaj Healthcare, and Piramal Pharma.
Breakout stocks to buy today
1] KNR Constructions: Buy at ₹340.40, target ₹365, stop loss ₹330;
2] Universal Cables: Buy at ₹838, target ₹900, stop loss ₹810;
3] Ashoka Buildcon: Buy at ₹313.20, target ₹333, stop loss ₹303;
4] Bajaj Healthcare: Buy at ₹587.80, target ₹630, stop loss ₹565; and
5] Piramal Pharma: Buy at ₹265.30, target ₹285, stop loss ₹255.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
