Sumeet Bagadia Recommends 5 Breakout Stocks to Buy for Potential Gains Amid Market Weakness

The Indian stock market continued its losing streak, marking seven straight sessions of decline, driven by concerns over global factors like US policy uncertainties under former President Donald Trump. The Nifty 50 index slipped 70 points to close at 23,462, while the BSE Sensex dropped 206 points to 77,374. However, the Nifty Bank index stood out, gaining 168 points to finish at 50,348, as buying interest remained strong in the banking sector.

In the broader market, small-cap stocks took a harder hit compared to the Nifty 50, reflecting cautious retail investor sentiment. Metal stocks saw some recovery, particularly aluminium, following China’s moves on duties and subsidies. On the other hand, IT, oil and gas, and healthcare stocks faced selling pressure after the government’s decision to reduce concessional APM gas allocation to CGD players.

Sumeet Bagadia’s View:

Sumeet Bagadia, Executive Director at Choice Broking, noted that the overall market trend remains weak, with the Nifty 50 hovering near its 200-day exponential moving average (200-DEMA). He highlighted that banking stocks have shown resilience amid the broader market weakness, but global factors like rising US dollar rates, China’s trade actions, and investor uncertainty about European Central Bank policies are creating headwinds.

Bagadia advised traders to focus on specific stocks showing strong technical patterns rather than broad market movements. He suggested keeping strict stop-loss levels, especially since breaking below the 23,200 level on Nifty could lead to intensified selling pressure. For any recovery, Nifty needs to breach the 23,700 mark, which could improve market sentiment.

Breakout Stocks to Buy Today:

Bagadia has identified five breakout stocks that look promising for intraday trading. Here’s his list with recommended targets and stop losses:

1. Camlin Fine Sciences
   • Buy Price: ₹121.37
   • Target: ₹128
   • Stop Loss: ₹117
2. DCAL (Dishman Carbogen Amcis)
   • Buy Price: ₹227.46
   • Target: ₹242
   • Stop Loss: ₹218
3. Deep Industries
   • Buy Price: ₹505.75
   • Target: ₹540
   • Stop Loss: ₹488
4. Jindal Drilling
   • Buy Price: ₹755
   • Target: ₹800
   • Stop Loss: ₹728
5. Avalon Technologies
   • Buy Price: ₹831.40
   • Target: ₹888
   • Stop Loss: ₹799

Key Takeaway:

While the overall market remains under pressure, focusing on technically strong breakout stocks could provide profitable opportunities for intraday traders. Maintaining a stock-specific approach with proper risk management is crucial in the current volatile environment.