Breakout stocks to buy or sell: The Indian stock market is expected to open negative on Wednesday, September 4, mirroring weakness in major Asian peers and the US markets.
Asian markets suffered significant losses in trade, while the US stock market ended sharply lower overnight amid a sell-off in technology stocks, and weak economic data sparked fears of recession in the world's largest economy.
In the previous session, the Indian stock market benchmarks, the Sensex and the Nifty 50, closed flat, while the mid- and small-cap segments gained. Experts expect the domestic market to consolidate in the near term due to a lack of fresh triggers and stretched valuations.
Sumeet Bagadia, Executive Director at Choice Broking, believes the overall trend of the Indian stock market remains bullish. He said the Nifty 50 index has a strong support at 25,000 level, but has resistance in the range of 25,250 to 25,300. He added that investors should buy dips as long as the index remains above 25,000 mark.
"Nifty is finding resistance around the 25,250 to 25,300 range, whereas it has made strong support at 25,000. However, the overall trend of the Indian stock market is bullish, and any dip should be seen as a buying opportunity until the frontline index is over the 25,000 mark. Investors are advised to maintain a stock-specific approach and look at breakout stocks for intraday trading," said Bagadia.
Talking about breakout stocks to buy today, Sumeet Bagadia recommended buying these five shares: JM Financial, D-Link (India), Garware Hi-Tech Films, Bombay Burmah Trading Corporation and Monarch Networth Capital.
JM Financial | Previous close: ₹118.53 | Buying price: ₹118.53 | Target price: ₹125 | Stop loss: ₹114
D-Link (India) | Previous close: ₹661.75 | Buying price: ₹661.75 | Target price: ₹699 | Stop loss: ₹636
Garware Hi-Tech Films | Previous close: ₹3,521.55 | Buying price: ₹3,521.55 | Target price: ₹3,730 | Stop loss: ₹3,385
Bombay Burmah Trading Corporation | Previous close: ₹2,673.75 | Buying price: ₹2,673.75 | Target price: ₹2,815 | Stop loss: ₹2,580
Monarch Networth Capital | Previous close: ₹856.65 | Buying price: ₹856.65 | Target price: ₹905 | Stop loss: ₹825
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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.
