Breakout stocks to buy or sell: Following weak global market sentiments on rising US dollar rates, the Indian stock market ended lower for the sixth straight session on Thursday last week. The Nifty 50 index finished 26 points lower at the 23,532 mark, the BSE Sensex shed 110 points and closed at 77,580, whereas the Nifty Bank index added 91 points and closed at 50,179. Realty, Auto (better than expected results), Telecom and Consumer discretionary stocks rose the most. At the same time, Oil & Gas and FMCG (disappointing outlook due to higher costs and muted spending) fell the most. Cash market volumes on the NSE were close to 6-month lows. The broad market indices ended positively, even as the advance-decline ratio crossed 1:1.
Sumeet Bagadia, Executive Director at Choice Broking, believes overall Indian stock market sentiment is weak. The Nifty 50 index broke below 23,700 and tested 200-DEMA as well. The Choice Broking expert said the 50-stock index may test 23,250 to 23,200 levels and advised investors to maintain a stock-specific approach. He noted that the Q2 results for the 2024-25 season have ended, and hence, fundamental triggers for the Indian companies are almost clear. He advised investors to look at technically strong shares. Bagadia said that breakout stocks can be a good bet for intraday trading.
Speaking on the outlook for the Indian stock market today, Sumeet Bagadia said, "The outlook for the Indian stock market remains weak as the Nifty 50 index has broken 23,700 support and tested 200-DEMA on Thursday. The 50-stock index may try to test 23,250 to 23,200 levels. Further breakdowns from these levels may intensify sharp sales. Hence, investors are advised to maintain a stock-specific approach and look at technically strong shares as the Q2 results for the 2024 season are almost over, and the market is looking at global triggers like the US dollar index movement, etc. Looking at breakout stocks for intraday trading can be a good option for day traders."
Regarding breakout stocks to buy today, Sumeet Bagadia recommended buying these five shares: Zomato, Hikal, Jio Financial Services, KEC International, and Fortis Healthcare.
1] Zomato: Buy at ₹269.70, target ₹289, stop loss ₹260.
2] Hikal: Buy at ₹403.85, target ₹432, stop loss ₹390;
3] Jio Financial Services: Buy at ₹318.35, target ₹341, stop loss ₹307;
4] KEC International: Buy at ₹1005.85, target ₹1076, stop loss ₹971; and
5] Fortis Healthcare: Buy at ₹639.10, target ₹684, stop loss ₹617.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
