Breakout stocks to buy or sell: Global markets retreated on Tuesday as worries spread over President-elect Donald Trump's comment that he plans to impose sweeping new tariffs on Mexico, Canada and China as soon as he takes office, in a setback to hopes of a more moderate approach to trade policy. Following the weak global cues, the Indian stock market snapped the two-day rally and finished marginally lower. The Nifty 50 index went off 27.40 points and closed at the 24,194.50 mark; the BSE Sensex shed 103 points and ended at 80,005, whereas the Nifty Bank index ended 35 points lower at 52,172. Cash market volumes on the NSE fell to ₹0.87 lakh crore. The broad market indices ended positively even as the advance-decline ratio remained firm at 1.4:1. Defence, banks, and telecom shares saw large volumes with some buying interest.
Sumeet Bagadia, Executive Director at Choice Broking, believes the Indian stock market bias is cautious as the Nifty 50 index is facing a hurdle at 24,350. In contrast, the 50-stock index has made an immediate base at 24,200. The Choice Broking expert said Dalal Street bias would improve once the frontline index decisively breaks above 24,350. Bagadia advised investors to maintain a stock-specific approach and look at stocks that look strong on the technical chart. He said that looking at breakout stocks can be a good bet 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 been facing hurdles at the 24,350 mark and oscillating around a new base of 24,200. A decisive break above the 24,350 hurdle is required to improve Dalal Street's mood from cautious to positive. So, my suggestion to investors would be a stock-specific approach with a special focus on breakout stocks for intraday trading."
Regarding breakout stocks to buy today, Sumeet Bagadia recommended buying these five shares: Marksans Pharma, Caplin Point Lab, Kabra Extrusion Technik, Jindal Poly Films, and Genesys International.
1] Marksans Pharma: Buy at ₹339, target ₹360, stop loss ₹325;
2] Caplin Point Lab: Buy at ₹2,115, target ₹2,288, stop loss ₹2,035;
3] Kabra Extrusion Technik: Buy at ₹512, target ₹545, stop loss ₹495;
4] Jindal Poly Films: Buy at ₹886, target ₹945, stop loss ₹855; and
5] Genesys International: Buy at ₹878.15, target ₹940, stop loss ₹845.
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.
