Breakout stocks to buy or sell: Following weak global market cues, the Indian stock market saw a subdued performance on Monday. The Nifty 50 index dropped 21 points, closing at 24,347, while BSE Sensex shed 56 points to settle at 79,648. In contrast, the Bank Nifty index gained 94 points, ending the session at 50,578. Notably, cash market volumes on the National Stock Exchange (NSE) were about 9% higher than in the previous session.
Despite the overall cautious sentiment, the small-cap index managed to close in positive territory, even as the advance-decline ratio moderated to 0.90:1.
Sumeet Bagadia, executive director, Choice Broking, observed that the Indian stock market has been trading within a range over the past few sessions. According to Bagadia, the Nifty 50 index has successfully held above the 24,000 mark but has yet to overcome the resistance in the 24,350-24,400 level. He emphasized that a clear bullish or bearish trend on Dalal Street would only emerge after the Nifty 50 breaks out of this range. Bagadia suggested that investors maintain a buy-on-dips strategy with a focus on specific stocks. He also recommended certain breakout stocks for intraday trading, highlighting that some shares still show positive technical indicators.
For today's breakout stocks picks, Bagadia has recommended five shares: Rail Vikas Nigam Ltd (RVNL), Stove Kraft, INOX Green, EIH Associated Hotels, and Dilip Buildcon Ltd (DBL).
Commenting on the broader stock market, Bagadia noted, "The crucial support of the Nifty 50 index placed at 23,900 has remained sacrosanct, and the 50-stock index has been sustaining above 24,000 mark with ease. However, the frontline index cannot decisively breach 24,400, which means the trend on the Indian stock market is sideways to positive. So, a stock-specific approach with a buy-on-dips strategy seems favourable in the current market scenario. One can look at breakout stocks as some of the stocks that have given fresh breakout on Monday still look strong on chart pattern."
1] RVNL: Buy at ₹576, target ₹620, stop loss ₹554;
2] INOX Green: Buy at ₹188.75, target ₹203, stop loss ₹179;
3] Stove Kraft: Buy at ₹673.20, target ₹727, stop loss ₹648;
4] EIH Associated Hotels: Buy at ₹988.70, target ₹1,070, stop loss ₹952; and
5] Dilip Buildcon: Buy at ₹556.80, target ₹602, stop loss ₹534.
Disclaimer: The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
