Breakout stocks to buy or sell: The ended in gains, following a 25-basis-point rate cut by the Reserve Bank of India (RBI) and the central bank’s proposal for a ₹1.45 lakh crore liquidity infusion through bond purchases and dollar-rupee swaps boosted domestic market sentiment.
The rose for the second straight session, closing 447 points higher (0.52%) at 85,712.37. The Nifty 50 also advanced, finishing at 26,186.45 with a gain of 153 points (0.59%). Meanwhile, the BSE Midcap index inched up 0.21%, but the Smallcap index declined by 0.67%.
Sumeet Bagadia’s breakout stock recommendations
Sumeet Bagadia, Executive Director at Choice Broking, believes that the Indian stock market sentiment is positive as the index has surged near to 26,200 levels.
“The key benchmark index is facing hurdle at 26,300. On breaking this hurdle on a closing basis, the 50-stock index may soon touch 26,500 and 26,800. So, one should maintain stock-specific approach and look at those stocks that are looking strong on the technical chart. Looking at breakout stocks can be a good option,” said Bagadia.
Stocks to buy today
Sumeet Bagadia recommends five breakout stocks to buy today – Shriram Pistons & Rings, Knowledge Marine & Engineering Works, Mahindra and Mahindra Financial Services, Cholamandalam Investment and Fin Co, and Stylam Industries.
1] Shriram Pistons & Rings: Buy at ₹2837, target ₹3040, stop loss ₹2727;
2] Knowledge Marine & Engineering Works: Buy at ₹3032, target ₹3280, stop loss ₹2940;
3] Mahindra and Mahindra Financial Services: Buy at ₹367, target ₹393, stop loss ₹354;
4] Cholamandalam Investment and Fin Co: Buy at ₹1730, target ₹1850, stop loss ₹1670;
5] Stylam Industries: Buy at ₹2147, target ₹2300, stop loss ₹2080.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.