Breakout Stocks to Buy or Sell: Following the US Fed’s aggressive outlook on interest rate cuts and selling of financial instruments, the Indian stock market broke its four-week winning streak. Major benchmark indices have wiped out their four-week gains over the past week. The Nifty 50 index fell to 23,587 from 23,768, with a weekly loss of 1,181 points. The BSE Sensex crashed from 82,133 to 78,041 levels, registering a loss of over 4,000 points last week. Similarly, the Nifty Bank index crashed from 53,583 to 50,759, with a weekly loss of 2,824 points last week.
During this stock market crash, the Nifty 50 index broke below the 200-DEMA support and settled at 23,800, which could have boosted the morale of the Indian stock markets. In this bear-hit market, the Nifty 50 index is close to its recent swing low of 23,250, and bets are high on whether this support will remain sacred or the 50-share index will hit a new low.
Sumeet Bagadia’s Breakout Stock Recommendations
Sumeet Bagadia, executive director at Choice Broking, believes that the overall bias in the Indian stock market has softened as the Nifty 50 index has fallen below the 200-DEMA support of 23,800 on a closing basis. The Choice Broking expert said investors should remain extra cautious as the 50-share index could try to move near the recent lower limit of 23,250. Bagadia noted that the market could see extensive selling if the frontline index breaks below 23,250. However, in case of a trend reversal, Nifty could face a significant hurdle at the 23,800 mark. A bullish or bearish trend can be assumed when breaking either side of the current range. He advised day traders to take a stock-specific approach and look at breakout stocks for intraday trading.
Sumeet Bagadia today recommended buying the following five breakout stocks: UCAL, Times Guaranty, Techno Electric & Engineering Company, Cartrade Tech and Emmbi Industries.
Stocks to buy today
1]LOUD: Buy from ₹215, target ₹227, stop loss ₹207;
2]Return guarantee: Buy from ₹186.88, target ₹200, stop loss ₹180;
3]Techno Electric & Engineering Company: Buy from ₹1625.15, target ₹1725, stop loss ₹1560;
4]Cartrade Technology: Buy from ₹1616, target ₹1717, stop loss ₹1555; And
5]Emmbi Industries: Buy from ₹156.43, goal ₹170, stop loss ₹150.
Disclaimer: The above views and recommendations are those of individual analysts, experts and brokerage firms, not of Mint. We recommend that investors consult certified experts before making investment decisions.
