Breakout stocks to buy today: The upside momentum with range-bound action continued in the Indian stock market on Wednesday. The Nifty 50 index surged 71 points and closed at the 24,770 mark; the BSE Sensex finished 102 points higher at 80,905, whereas the Bank Nifty index lost 117 points and ended at 50,685. However, the broad market outperformed the frontline indices, as the Small-cap index finished 0.87 per cent higher while the Mid-cap index closed 0.43 per cent upside.
Sumeet Bagadia, Executive Director at Choice Broking, believes that overall Indian stock market bias is positive till the Nifty 50 index is above the crucial support placed at 24,450. The Choice Broking expert said that the 50-stock index is set to touch the 25,000 mark in the near term but expected the range-bound action to continue further. He said that most US Fed members have batted in favour of a rate cut in the September US Fed meeting provided the progress in the US inflation continues. This augurs well for all assets other than the US bond and the US currency. He suggested looking at breakout stocks, maintaining a stock-specific approach, and sideways to positive bias that may continue during the intraday trading session.
Sumeet Bagadia recommended five breakout stocks to buy today: Nectar Lifesciences, Lovable Lingerie, Hariom Pipe Industries, Deepak Fertilisers, and VETO.
On the outlook for the Indian stock market today, Sumeet Bagadia said, "The Indian stock market may continue to trade sideways to positive till the Nifty 50 index is above its crucial support placed at 24,450. The 50-stock is expected to touch the 25,000 mark after the release of US Fed minutes as most US Fed members favour a rate cut in the September meeting." However, Bagadia said Nifty today may face a minor hurdle in the 24,800 to 24,850 range.
1] Nectar Lifesciences: Buy at ₹37.48, target ₹39.40, stop loss ₹36;
2] Lovable Lingerie: Buy at ₹184.25, target ₹193, stop loss ₹177.50;
3] Hariom Pipe Industries: Buy at ₹774.50, target ₹826, stop loss ₹755;
4] Deepak Fertilisers: Buy at ₹1052, target ₹1100, stop loss ₹1010; and
5] VETO: Buy at ₹180.94, target ₹190, stop loss ₹174.
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 taking any investment decisions.
