The Indian stock market has been experiencing a decline, with the Sensex and Nifty 50 extending their losses for the third consecutive session. This downturn is largely attributed to concerns over a weak rupee, ongoing foreign capital outflows, and delays in the India-US trade deal. Despite this, some stocks are poised for a breakout, potentially offering investors opportunities for gains.
The Sensex slipped 120 points to settle at 84,559.65, while the Nifty 50 declined 42 points to close at 25,818.55. Broader markets underperformed, with the BSE Midcap index falling 0.53% and the Smallcap index dropping 0.85%.
Sumeet Bagadia, Executive Director at Choice Broking, notes that the Indian stock market sentiment has turned weak. The Nifty 50 index is close to the 50-DEMA support at 25,750. If this support is broken, the index may test 25,500 to 25,400 levels. However, if it breaks above 26,000 on a closing basis, it could fuel positive conviction among bulls.
Bagadia recommends maintaining a stock-specific approach and looking at stocks that appear strong on technical charts. Considering breakout stocks can be a viable option for investors.
Bagadia suggests the following five stocks to buy, each with a target price and stop loss:
Remember, this is a perspective based on technical analysis and not a prediction. It's essential for investors to do their own research and consult with certified experts before making any investment decisions.
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