Breakout stocks to buy or sell: As volatility is becoming a norm rather than an exception in the Indian stock market, sharp selling was witnessed across sections on Tuesday. Among the frontline indices, the Nifty 50 index crashed 347 points and closed at the 24,320 mark, the BSE Sensex nosedived 1,086 points and finished at 80,662, whereas the Nifty Bank index nosedived 792 points and ended at 52,789. However, the break market outperformed the frontline indices. NSE cash market volumes surged 21% as compared to Monday deals. The Nifty Mid-cap 100 and the Small-cap 100 Index fell along with the benchmark indices as they ended lower by 0.57% and 0.68%, respectively. All the sectoral indices closed in the red except Nifty Media. Nifty PSU Banks, Metal and OIL/Gas fell the most among them. Declining shares outnumbered the advancing shares as the advance-decline ratio stood at 0.64 on BSE.
Sumeet Bagadia’s breakout stock recommendations
Sumeet Bagadia, Executive Director at Choice Broking, believes that Indian stock market bias has turned cautious as the Nifty 50 index has broken below its 50-DEMA support, placing at 24,450 to 24,400 range. The Choice Broking expert said the 50-stock index is sustaining above 24,300, which is good from the bulls’ perspective. Bagadia reiterated that Wednesday’s opening will be crucial. If the frontline index sustains above 24,300 for an hour, we can expect some relief rally on Dalal Street. However, he maintained that bulls’ control on Dalal Street can be assumed only when the Nifty 50 index breaks above 24,750 to 24,800 decisively. He advised day traders to keep a stock-specific approach and suggested buying breakout stocks for intraday trading.
Regarding breakout stocks to buy today, Sumeet Bagadia recommended buying these five shares: Ion Exchange (India), Stove Kraft, Gokaldas Exports, Doms Industries, and eMudhra.
Stocks to buy today
1] Ion Exchange (India): Buy at ₹725.95, target ₹765, stop loss ₹699;
2] Stove Kraft: Buy at ₹892.30, target ₹950, stop loss ₹860;
3] Gokaldas Exports: Buy at ₹1,242.95, target ₹1,313, stop loss ₹1,199;
4] Doms Industries: Buy at ₹3,052.05, target ₹3,200, stop loss ₹2,950; and
5] eMudhra: Buy at ₹983.35, target ₹1,050, stop loss ₹945.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
