Breakout stocks to buy or sell: After ending a five-day losing streak, Indian equity benchmarks Sensex and Nifty 50 returned to losses on Tuesday, January 13, as profit booking set in amid ongoing concerns over US tariffs, continued foreign fund outflows, and mixed global cues.
The 30-share Sensex slumped more than 600 points, or 0.73%, to an intraday low of 83,262.79, while the Nifty 50 slipped 0.72% to touch a low of 25,603.30. However, the Sensex finished 250 points, or 0.30%, lower at 83,627.69, and the Nifty 50 ended down 58 points, or 0.22%, at 25,732.30.
Stock market outlook
Nifty 50
According to Sumeet Bagadia, Executive Director at Choice Broking, the Nifty 50 opened on a positive note and remained volatile throughout the session. During the first half, the index corrected nearly 300 points from the day’s high; however, the second half witnessed a recovery of around 156 points, reflecting buying interest at lower levels. Despite intraday volatility, the index managed to close above last month’s low, suggesting a reduction in immediate downside pressure.
” The index decisively broke above the resistance level of 25,700 and closed at 25,732, indicating a marginal improvement in near-term sentiment. Immediate resistance is placed in the 25,850–25,900 zone, while crucial support is located in the 25,550–25,600 range.
Derivatives data indicates heavy call writing at the 26,000 strike along with strong put writing at the 25,700 strike, thereby establishing a defined near-term trading range. As long as the Nifty sustains above the 25,600 mark, a selective buy-on-dips strategy may be considered, albeit with strict stop-losses placed at 25,500 to manage downside risk effectively,” Bagadia said.
Bank Nifty
The Bank Nifty opened on a positive note but witnessed a sharp bearish move of nearly 450 points, slipping to an intraday low of 59,500. However, the index staged a strong rebound of approximately 330 points from lower levels and eventually closed at 59,578.80, reflecting strong buying interest emerging near support zones.
On the Bank Nifty outlook, he added, “ Immediate resistance is placed in the 59,800–59,900 zone, while the 59,200–59,300 support band remains critical for maintaining near-term stability in the index. On the daily charts, the RSI stands at 53.53 and is trending higher, suggesting improving momentum and a gradual strengthening of bullish undertones.
Despite the short-term volatility, the market continues to exhibit underlying strength. Accordingly, traders are advised to maintain a bullish bias and adopt a buy-on-dips strategy near key support levels, supported by disciplined risk management and appropriate stop-loss placements to guard against deeper downside risks.”
Breakout stocks to buy today
Breakout stocks are those stocks that move past their established support or resistance levels. Breakouts often signal that a stock may be poised for a strong price move.
Amid ongoing market conditions, Sumeet Bagadia has recommended five breakout shares to buy today – Jamna Auto Industries, DCB Bank, CSB Bank, Bajaj Consumer Care, and Tech Mahindra.
1] Jamna Auto Industries: Buy at ₹133.5, target ₹144, stop loss ₹129
Jamna Auto is in a strong uptrend and has given a fresh breakout above its prior consolidation zone. The stock is trading above all key EMAs, with the 20 and 50 EMA sloping upward, indicating strong short-term momentum. Volumes have expanded on the breakout, highlighting accumulation. As long as the stock sustains above 129, the bullish structure remains intact, favouring a move toward 144.
2] DCB Bank: Buy at ₹184.45, target ₹198, stop loss ₹178
DCB Bank continues to trade in a broader uptrend and is consolidating after a sharp rally. Price is holding above the 20 and 50 EMA, while the overall structure remains positive despite minor pullbacks. The consolidation appears healthy with declining selling pressure. Holding above 178 keeps the trend intact, and a sustained breakout could lead to an upside move toward the 198 zone.
3] CSB Bank: Buy at ₹518, target ₹558, stop loss ₹499
CSB Bank has witnessed a strong impulsive rally and is currently consolidating near highs, indicating strength. The stock is trading well above its key moving averages, with EMAs aligned positively. Volumes surged during the breakout phase, suggesting strong institutional participation. As long as the price sustains above 499, the uptrend remains valid and may extend toward the 558 target.
4] Bajaj Consumer Care: Buy at ₹283, target ₹305, stop loss ₹275
Bajaj Consumer is trading in a steady uptrend and has reclaimed key resistance levels. The stock is comfortably placed above the 20, 50, and 100 EMAs, indicating improving momentum. Pullbacks are shallow and supported by lower volumes, suggesting accumulation. Sustaining above 275 keeps the bullish bias intact, with potential for further upside toward the 305 zone.
5] Tech Mahindra: Buy at ₹1614, target ₹1740, stop loss ₹1560
Tech Mahindra is currently in a consolidation phase, with the broader trend sideways to mildly bullish. A decisive breakout above the falling trend line near 1,630 would confirm strength and could lead to a fresh upside move. On a confirmed breakout, the stock may head toward 1,740, while 1,560 acts as a crucial support and stop-loss level. Volumes should expand on the breakout to validate the move.
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.
