Breakout stocks to buy or sell: Following the weak global market sentiments after the US Fed meeting outcome falling in line with the market expectations, the Indian stock market ended lower for the fourth straight session on Thursday. The Nifty 50 index nosedived 236 points and closed at the 23,961 mark, the BSE Sensex crashed 939 points and ended at 79,242, while the Nifty Bank index finished 528 points and 51,610. All the sectoral indices ended in the red except Nifty Pharma. 

The Nifty IT, Nifty Financial services, and consumer durables fell the most. The Nifty Mid-cap 100 and the Small-cap 100 index continued their downward journey for the third day in a row, falling by 0.28% and 0.51%, respectively. Though the index ended in the red, both recovered sharply from the early morning lows and ended the day near the day’s high. Declining shares outnumbered the advancing shares for the third day in a row, where the advance-decline ratio stood at 0.74 on BSE.

Sumeet Bagadia’s breakout stock recommendations

Sumeet Bagadia, Executive Director at Choice Broking, believes that overall Indian stock market bias has weakened as the Nifty 50 index has slipped decisively below 24,000 mar. The Choice Broking expert said the 50-stock index has crucial support placed at 200-DEMA, which is at the 23,800 mark. The Choice Broking expert added that Indian stock market bias may remain weak until it is below the 24,000 level. Bagadia said the stock market bias may remain sideways until it regains the 24,000 peak and breaks above 24,300 decisively. He advised a stock-specific approach and looked at breakout stocks for intraday trading.

Speaking on the outlook for the Indian stock market today, Sumeet Bagadia said, “Overall, the Indian stock market bias has turned weak as the Nifty 50 index has lost the 24,000 mark decisively. Now, the 50-stock index has crucial support placed at 200-DEMA and breaching below this mark (23,800 level) may further intensify the selling pressure in the Indian stock market. Even if this support remains sacrosanct, Dalal Street bias may remain sideways to negative until it regains the 24,000 peak and breaks above 24,300 decisively. So, one should maintain a stock-specific approach and look at breakout stocks for intraday trading.”

Regarding breakout stocks to buy today, Sumeet Bagadia recommended buying these five shares: Kamat Hotels, Mallcom India, Pokarna, Zota Health Care, and Sree Rayalaseema Hi-Strength Hypo.

Stocks to buy today

1] Kamat Hotels: Buy at ₹242.50, target ₹255, stop loss ₹233;

2] Mallcom India: Buy at ₹1610.25, target ₹1700, stop loss ₹1555;

3] Pokarna: Buy at ₹1266.85, target ₹1350, stop loss ₹1225;

4] Zota Health Care: Buy at ₹805.25, target ₹860, stop loss ₹775; and

5] Sree Rayalaseema Hi-Strength Hypo: Buy at ₹837.90, target ₹900, stop loss ₹810.

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.