Breakout stocks to buy or sell: Indian stock market benchmarks closed lower on Tuesday, October 15, weighed down by losses in key heavyweights like Reliance Industries. In contrast, the midcap and small-cap segments recorded gains, reflecting the ongoing trend of profit-booking in one segment and dip-buying in another. Out of 4,064 stocks that traded on the BSE, 1,986 advanced, while 1,983 declined. Some 95 stocks remained unchanged.
Unimpressive Q2 earnings, weak global cues and concerns over sticky inflation persist as key headwinds for the market.
The Nifty 50 is expected to start negative on Wednesday, tracking weak global cues. US stock market indices ended lower on Tuesday, with the technology-heavy Nasdaq falling 1 per cent as chip stocks tumbled and the energy sector falling 3 per cent.
Sumeet Bagadia, Executive Director at Choice Broking, believes the underlying sentiment of the market is sideways to positive, and one should maintain a buy-on-dips strategy.
Bagadia observed that the Nifty 50 has made a significant base at 24,900, but the index has key resistance at 25,300. As long as the index remains above 24,900, one should continue buying on dips.
"The Nifty 50 index is finding resistance at 25,300, whereas it has made a strong base at 24,900. However, the 50-stock index is sustained above 25,000, which means the overall sentiment is sideways to positive. So, one can maintain buy-on-dips until 24,900 support remains sacrosanct," said Bagadia.
Bagadia suggests that day traders should maintain a stock-specific approach, focusing on breakout stocks for intraday trading.
Regarding breakout stocks to buy today, Sumeet Bagadia recommended buying these five shares: SIL Investments, Sundaram Finance Holdings, Igarashi Motors India, Vijaya Diagnostic Centre and SMC Global Securities.
1. SIL Investments | Buy at ₹655 | Target price: ₹700 | Stop loss: ₹635
2. Sundaram Finance Holdings | Buy at ₹374 | Target price: ₹400 | Stop loss: ₹360
3. Igarashi Motors India | Buy at ₹697.7 | Target price: ₹750 | Stop loss: ₹675
4. Vijaya Diagnostic Centre | Buy at ₹1,107.65 | Target price: ₹1,188 | Stop loss: ₹1,070
5. SMC Global Securities | Buy at ₹163 | Target price: ₹175 | Stop loss: ₹158
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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.
