Breakout stocks to buy or sell: Following underwhelming Q2 results 2024 season and sharp selling by FIIs and local investors, the Indian stock market ended lower for the third straight session on Tuesday. The Nifty 50 index lost 309 points and ended over two months at a lower level of 24,472. The BSE Sensex crashed 930 points and closed at 80,220, whereas the Nifty Bank index nosedived 705 points and ended at 51,257.
The Mid-cap and Small-cap indices came under severe selling pressure, falling between 2.5% to 3.8%. Global cues were also negative as investors evaluated third-quarter corporate earnings amid uncertainty regarding global economic growth and interest rate trajectories; however, the extent of weakness in the Indian markets was exceptional.
Sumeet Bagadia, Executive Director at Choice Broking, believes the Indian stock market bias weakened after the Nifty 50 index broke below the 24,700 mark. The Choice Broking expert said the 50-stock index has crucial support at the 24,000 mark, and breaking below this mark would mean more selling. He said the Bank Nifty index also showcases a bearish trend and can touch the 49,350 to 49.300 mark once it breaks below the psychological 51,000 mark. He advised investors to maintain a stock-specific approach and look at technically strong stocks.
Speaking on the outlook of the Indian stock market today, Sumeet Bagadia said, "The Indian stock market trend has turned bearish as the Nifty 50 index crashed below its 24,700 support and ended at over two months' low. Now, the 50-stock index has crucial support placed at 24,000 and 23,300. In this bear-hit market, investors are advised to trade cautiously and maintain a stock-specific approach. Looking at breakout stocks for intraday trading can be a good option on Wednesday."
Sumeet Bagadia recommended five breakout stocks to buy on Wednesday: City Union Bank, Pansari Developers, Saurashtra Cement, Poly Medicure, and Tube Investments of India.
1] City Union Bank: Buy at ₹168.51, target ₹180, stop loss ₹162;
2] Pansari Developers: Buy at ₹131.46, target ₹140, stop loss ₹126;
3] Saurashtra Cement: Buy at ₹124.71, target ₹132, stop loss ₹120;
4] Poly Medicure: Buy at ₹2,524.75, target ₹2,666, stop loss ₹2,436;
5] Tube Investments of India: Buy at ₹4,486.35, target ₹4,750, stop loss ₹4,320.
Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.
