Breakout stocks to buy or sell: Indian benchmark indices – Sensex and Nifty 50 – extended loses for third consecutive session on Wednesday, December 17, led by constant worries over weak rupee, continued foreign capital outflows and delays in India-US trade deal.
The Sensex slipped 120 points, or 0.14%, to settle at 84,559.65, while the Nifty 50 declined 42 points, or 0.16%, to close at 25,818.55. Broader markets underperformed the frontline indices, with the BSE Midcap index falling 0.53% and the Smallcap index dropping 0.85%.
Sumeet Bagadia’s breakout stock recommendations
Sumeet Bagadia, Executive Director at Choice Broking, believes that the Indian stock market sentiment has turned weak as the Nifty 50 index went further down and finished around 25,800 levels, which is close to the 50-DEMA support placed around 25,750.
“On breaking below this support, the 50-stock index may try to test 25,500 to 25,400 levels. On the upper side, the key benchmark index is facing hurdle at 26,000. On breaking above this level on a closing basis would fuel positive conviction among bull’s. So, one should maintain stock-specific approach and look at those stocks that are looking strong on the technical chart. Looking at breakout stocks can be a good option,” said Bagadia.
Stocks to buy today
Sumeet Bagadia recommends five shares to buy today – GRM Overseas, India Cements, Mahindra and Mahindra Financial Services, Avanti Feeds, and MM Forgings.
1] GRM Overseas: Buy at ₹470, target ₹505, stop loss ₹450;
2] India Cements: Buy at ₹436, target ₹470, stop loss ₹420;
3] Mahindra and Mahindra Financial Services: Buy at ₹351, target ₹375, stop loss ₹339;
4] Avanti Feeds: Buy at ₹854, target ₹915, stop loss ₹825;
5] MM Forgings: Buy at ₹372, target ₹400, stop loss ₹360.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
