On Thursday, the Indian stock market faced a tough day despite some buying in banking stocks. The Nifty 50 index dropped for the fifth day in a row, losing 216 points to close at 22,488. The BSE Sensex also fell significantly, dropping 617 points to finish at 73,885. However, the Bank Nifty index went up by 181 points, closing at 48,682. In the broader market, the mid-cap index fell by 1.21%, and the small-cap index declined by 1.33%. The market’s volatility continued, with the India VIX Index ending at 24.18.
Breakout Stocks to Watch
Sumeet Bagadia, Executive Director at Choice Broking, noted that despite the high volatility, some stocks showed strong breakouts on the charts. These stocks are still looking promising and could be good for intraday trading today.
Nifty Outlook
Bagadia mentioned, “The Nifty 50 index has broken its key support level of 22,500. The next immediate support is between 22,350 and 22,400. If this support is breached, we could see more downward pressure in the Indian stock market.”
Volatility and Election Results
Regarding the high volatility due to the upcoming Lok Sabha Election results, Bagadia said, “The market volatility is expected to continue until the Lok Sabha Election results are announced on June 4, 2024. Traders should keep an eye on the India VIX Index, which has resistance at 25 and support at 23. If the resistance is broken, the VIX could reach 28.”
Breakout Stocks to Buy Today
Bagadia suggested looking at these five breakout stocks for intraday trading:
- KNR Construction: Buy at ₹302.60, target ₹335, stop loss ₹287.
- Linde India: Buy at ₹9145, target ₹9666, stop loss ₹8830.
- Heritage Foods: Buy at ₹407, target ₹425, stop loss ₹395.
- Emami: Buy at ₹612, target ₹645, stop loss ₹588.
- RHI Magnesita: Buy at ₹736.35, target ₹777, stop loss ₹710.
These stocks are showing strong technical patterns and could offer good trading opportunities today.
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