Breakout stocks to buy or sell: The Indian stock market ended lacklustre on Tuesday, August 27, as optimism about the start of the US rate cut cycle was clouded by persisting geopolitical tensions in the Middle East. Benchmark Nifty 50 closed at 25,017.75, up 7 points, or 0.03 per cent, while the Sensex settled 14 points, or 0.02 per cent, up at 81,711.76.
However, the mid-and small-cap indices on the BSE rose about half a per cent each, lifting the overall market capitalisation of firms listed on the BSE to a record ₹463 lakh crore.
The Indian stock market fails to hold gains at higher levels due to profit booking amid concerns over stretched valuations. Experts observe that the Nifty 50 is witnessing profit booking at higher levels, around the all-time high of 25,078.
According to Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas, the Negative divergence and crossover on the momentum indicator could be the reason for the vulnerability at higher levels.
"On the downside, crucial support is placed in zones 24,960- 24,855. On the upside, the immediate hurdle is placed at 25,200 – 25,250," said Gedia.
The domestic market may see a negative opening today, as indicated by GIFT Nifty, which was 10 points down at 25,002 around 7:15 am.
Weak global cues are expected to weigh on domestic market sentiment. Among Asian peers, Nikkei, Hang Seng and Shanghai Composite Index were in the red this morning ahead of Nvidia Corp.’s results. Nvidia’s results will help investors assess whether the euphoria around artificial intelligence is sustainable or not.
Besides, the monthly derivatives expiry day is near, which may keep the market volatile. Some experts pointed out the significant call and put option writers at the same strike point.
"The significant presence of both call and put option writers at the 25,000 strike price strengthens the technical setup. As a result, the Nifty 50 is likely to remain rangebound or experience a slight dip in the near term. On the lower end, 24,800 could be immediate support, while a rise above 25,100 might push the Nifty towards 25,300," said Rupak De, Senior Technical Analyst, LKP Securities.
On being asked about the breakout stocks, Sumeet Bagadia, Executive Director at Choice Broking, recommends buying these five stocks intraday in the cash segment: Emami Realty, Nelco, NIIT, Intrasoft Technologies and Kfin Technologies.
Emami Realty | Buying price: ₹119.72 | Target price: ₹126 | Stop loss: ₹115
Nelco | Buying price: ₹1,279.3 | Target price: ₹1,345 | Stop loss: ₹1,230
NIIT | Buying price: ₹175.55 | Target price: ₹185 | Stop loss: ₹169
Intrasoft Technologies | Buying price: ₹150.17 | Target price: ₹157 | Stop loss: ₹144
Kfin Technologies | Buying price: ₹1,148 | Target price: ₹1,215 | Stop loss: ₹1,110
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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.
