Breakout stocks to buy or sell: The Indian stock market is likely to open on a positive note, tracking gains across Asian markets, which kicked off the first week of the new year strongly after the U.S. announced it had attacked Venezuela and captured President Nicolás Maduro over the weekend.
On Friday, both Indian indices, Sensex and Nifty, posted solid gains, driven by broad-based buying across sectors amid rising optimism ahead of the Q3 earnings season.
The Sensex advanced 573 points, or 0.67%, to close at 85,762.01. Meanwhile, the Nifty 50 touched an all-time high of 26,340 during the day before easing slightly to end at a record closing level of 26,328.55, up 182 points, or 0.70%. The BSE Midcap index gained 0.97%, while the Smallcap index rose 0.79%.
Stock market outlook
Nifty 50
The Nifty 50 opened on a strong positive note and sustained its upward momentum throughout the session, indicating underlying bullish strength, on Friday, January 2.
On the Nifty outlook, Sumeet Bagadia, Executive Director at Choice Broking, said, ” The index briefly crossed the major resistance at 26,200 and confirmed a breakout above the earlier all-time high of 26,325, closing at 26,328, which reinforces the continuation of the bullish trend. Immediate resistance is placed in the 26,450–26,500 zone, while key support is seen at 26,150–26,200.
The daily RSI stands at 62.39 and is trending higher, reflecting strengthening momentum. Volatility remained subdued, with India VIX rising marginally by 2.89 percent to 9.45. Derivatives data shows heavy call writing and strong put accumulation at the 26,200 strike, establishing it as a crucial pivot level.As long as the index holds above 26,200, a selective buy-on-dips strategy remains favorable, with strict stop-losses placed at 26,150.”
Bank Nifty
On Friday, The Bank Nifty opened on a strong positive note and witnessed a sharp bullish rally, registering a fresh all-time high at 60,203, indicating strong buying interest and positive sentiment across banking stocks.
On the Bank Nifty outlook, Bagadia added, ” This price action suggests that intraday additions are being well supported by strong institutional participation and sustained follow-through buying.
Immediate resistance is seen in the 60,400–60,500 zone, while the support band of 59,800–59,900 remains critical for maintaining near-term stability in the index. On the daily charts, the RSI stands at 67.55 and continues to trend higher, suggesting strong momentum with bullish undertones.”
He further advised traders to maintain a bullish bias and adopt a buy-on-dips strategy near key support levels, with disciplined risk management through appropriate stop-loss placements.
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 – Jbm Auto, Anant Raj, CESC, Elecon Engineering Company, and UNO Minda.
1] Jbm Auto: Buy at ₹666.60, target ₹720, stop loss ₹634
JBMA is trading around ₹666.60 and is recovering after a recent corrective move, having taken strong support and moving higher with improving strength. The stock is trading above its 20, 50, 100, and 200 EMAs, indicating a positive trend. Immediate support lies near ₹640. Short-term traders may consider buying at current levels with a stop loss of ₹634 for a target of ₹720, following disciplined risk management.
2] Anant Raj: Buy at ₹584.05, target ₹640, stop loss ₹554
ANANTRAJ is trading around ₹584.05 and has recently formed a bottom, taking strong support and moving higher. The stock has witnessed a sideways range upside breakout, indicating renewed strength. A strong close above the key 20, 50, 100, and 200 EMAs confirms a positive trend. Short-term traders may consider buying at current levels with a stop loss of ₹554 and a target of ₹640, following appropriate risk management.
3] CESC: Buy at ₹175.37, target ₹192, stop loss ₹167
CESC is trading around ₹175.37 and has recently consolidated before delivering a sharp upside breakout after taking strong trendline support, indicating bullish strength. The stock is trading firmly above the key 20, 50, 100, and 200 EMAs, reflecting trend confirmation. Immediate support lies near ₹170, an accumulation zone. Short-term traders may consider buying at current levels with a stop loss of ₹167 and a target of ₹192, following disciplined risk management.
4] Elecon Engineering Company: Buy at ₹501, target ₹550, stop loss ₹478
ELECON is trading around ₹501 and is showing strength after taking solid support in the 480–485 accumulation zone and moving higher. The stock has recently given a four-day sideways range breakout, indicating a potential trend reversal. RSI at 56.03 reflects a bounce from oversold levels multiple times, signaling improving momentum. Short-term traders may consider buying at current levels with a stop loss of ₹478 and a target of ₹550, following disciplined risk management.
5] UNO Minda: Buy at ₹1321.20, target ₹1450, stop loss ₹1265
UNOMINDA is trading around ₹1,321.20 and is showing strength after an upside trendline resistance breakout. The stock is forming higher highs and higher lows in the weekly chart, indicating a sustained uptrend. It is trading above the key 20, 50, 100, and 200 EMAs, signalling trend strength. RSI at 61.73 reflects healthy bullish momentum. Immediate support lies in the 1,280–1,300 accumulation zone. Short-term traders may consider buying at current levels with a stop loss of ₹1,265 and a target of ₹1,450, following disciplined risk management.
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.
