Despite ongoing selling by foreign portfolio investors (FPIs), the Indian stock market saw strong support from domestic institutional investors (DIIs) on Tuesday, October 8. This led to healthy gains in major indices. The Sensex closed up 0.72% at 81,634.81, while the Nifty 50 rose by 0.88% to end at 25,013.15. The BSE Midcap and Smallcap indices also performed well, gaining 1.86% and 2.44%, respectively.
The recent decline in the Indian stock market was mainly due to foreign investments leaving in favor of cheaper Chinese stocks, after China announced measures to support its economy. On Tuesday, FPIs withdrew ₹5,729.60 crore from Indian markets, while DIIs invested ₹7,000.68 crore. So far in October, FPIs have pulled out ₹47,003 crore from the Indian financial markets.
Sumeet Bagadia, Executive Director at Choice Broking, notes that while the market sentiment has improved, caution is still advisable. He suggests focusing on specific stocks for trading rather than making broad moves. He mentioned that the Nifty index must decisively break through the 25,400 mark for a stronger bullish trend, and the Nifty Bank index should clear the 51,800 barrier to show more strength.
Here are the five breakout stocks Sumeet Bagadia recommends for today:
- One 97 Communications (Paytm)
- Buy at: ₹753
- Target Price: ₹799
- Stop Loss: ₹722
- Precision Wires India
- Buy at: ₹208.20
- Target Price: ₹222
- Stop Loss: ₹201
- India Glycols
- Buy at: ₹1,483.10
- Target Price: ₹1,585
- Stop Loss: ₹1,435
- Allied Digital Services
- Buy at: ₹283.15
- Target Price: ₹303
- Stop Loss: ₹273
- Nagarjuna Fertilizers and Chemicals
- Buy at: ₹11.84
- Target Price: ₹12.60
- Stop Loss: ₹11.40
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