Market Tumbles, But These 5 Breakout Stocks to Buy Today: Sumeet Bagadia’s Top Picks Amid Nifty 50 Slump

Despite a rally in the US stock market driven by strong earnings from companies like Morgan Stanley and United Airlines, the Indian stock market ended lower for the third consecutive session on Thursday. The Nifty 50 index dropped by 221 points, closing at 24,749, while the BSE Sensex lost 494 points, finishing at 81,006. The Nifty Bank index also saw a drop, falling by 512 points to end at 51,288. Trading volumes on the NSE were 5.2% lower than the previous session, and broader market indices performed worse than the Nifty 50 index, with a sharp drop in the advance-decline ratio to 0.33:1.

Sumeet Bagadia’s Stock Picks for Today

Sumeet Bagadia, Executive Director at Choice Broking, noted that the Indian stock market currently has a weak bias, with the Nifty 50 index falling after breaking the 50-day exponential moving average (DEMA) support around the 25,000 mark. According to Bagadia, the Nifty 50 has immediate support at 24,690, and any upward movement during the trading day should be considered a temporary relief rally. He believes that the Nifty 50 may test its current support level again and could drop further to around 24,500.

Bagadia recommends a stock-specific approach due to the ongoing Q2 earnings season for 2024, focusing on technically strong stocks, particularly breakout stocks suitable for intraday trading.

Market Outlook

Bagadia said, “The overall sentiment on Dalal Street has weakened after the Nifty 50 fell further below the 50-DEMA level around 25,000. There is immediate support at 24,690, and the index may retest this level. However, after three straight sessions of losses, we could see some upside, but it would only be a relief rally until the Nifty 50 breaks above 25,300. Given the Q2 earnings season, I suggest focusing on breakout stocks.”

Breakout Stocks to Buy Today

Sumeet Bagadia recommends the following five stocks for today:

1. Amines and Plasticizers
   Buy at ₹321.85, target ₹345, stop loss ₹310
2. Weizmann
   Buy at ₹136, target ₹144, stop loss ₹131
3. Palash Securities
   Buy at ₹163.35, target ₹175, stop loss ₹157
4. Kanpur Plastipack
   Buy at ₹129.30, target ₹136, stop loss ₹125
5. Nalwa Sons Investments
   Buy at ₹6251.50, target ₹6666, stop loss ₹6000

These stocks are identified as strong candidates for intraday trading based on their technical strength.