Breakout stocks to buy or sell: The Indian stock market closed in a negative territory for fifth session straight on Friday, January 9, led by US tariffs worries, cautious sentiment ahead of the Q3 earnings season, and continued foreign investor outflows.
The Sensex declined 605 points, or 0.72%, to close at 83,576.24, while the Nifty 50 shed 194 points, or 0.75%, to finish at 25,683.30. Broader market sentiment stayed weak as well, with the BSE Midcap index slipping 0.90% and the Smallcap index plunging 1.74%.
Stock market outlook
Nifty 50
According to Sumeet Bagadia, Executive Director at Choice Broking, the Nifty 50 opened on a weak note and extended its decline throughout the session, indicating persistent selling pressure and bearish sentiment. The index briefly breached the key support level of 25,800 and confirmed a decisive breakdown below this zone, eventually closing at 25683, which reinforces the short-term bearish bias and weakening market structure.
“Immediate resistance is placed in the 25,800–25,850 zone, while crucial support is located at 25,500–25,550. On the momentum front, the daily RSI stands at 38.55 and continues to trend lower, reflecting deteriorating momentum and a lack of buying strength. India VIX edged up by 3.07% to 10.92, suggesting a marginal pickup in volatility and cautious market sentiment.
Derivatives data indicate heavy call writing along with strong put accumulation at the 25,800 strike, establishing this level as a key pivot and near-term hurdle for the index. As long as Nifty holds above 25,600, a selective buy-on-dips strategy may be considered, albeit with strict stop-losses placed at 25,500 to manage downside risk,” Bagadia said.
Bank Nifty
The Bank Nifty opened on a flat note and witnessed a sharp bearish move of nearly 590 points on the downside, registering an intraday low at 59,154, indicating aggressive profit booking and supply pressure at higher levels.
“ This price action suggests that the index is undergoing a short-term consolidation-to-correction phase after recent gains. Immediate resistance is placed in the 59,500–59,600 zone, while the 59,000–58,900 support band remains critical for maintaining near-term stability in the index. On the daily charts, the RSI stands at 47.96 and is trending lower, suggesting a loss of upward momentum and increasing caution among bulls. Despite the short-term weakness, traders are advised to maintain a bullish bias and adopt a buy-on-dips strategy near key support levels, supported by disciplined risk management with appropriate stop-loss placements to protect against deeper downside risks,” Bagadia added.
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 – CCL Products (India), KSB, HCL Technologies, Endurance Technologies, and Ramco Cements Limited.
1] CCL Products (India): Buy at ₹942.40, target ₹1035, stop loss ₹897
CCL is trading around ₹942.40 and has recently given an upside breakout from a five-day sideways consolidation, indicating improving strength. The stock has also delivered a falling trendline breakout and continues to trade above its key 100 and 200 EMAs, reflecting downside support. RSI at 48.30 is turning favourable. Short-term traders may consider buying with a stop loss of ₹897 and a target of ₹1,035, following disciplined risk management.
2] KSB: Buy at ₹763.70, target ₹830, stop loss ₹730
KSB is trading around ₹763.70 and has recently consolidated in a sideways range before giving a breakout with a strong close above the previous seven trading sessions’ range, indicating renewed strength. RSI at 51.49 signals improving momentum. On the downside, immediate support is placed near ₹750, aligned with the 20-day EMA where accumulation is observed. Short-term traders may consider buying at current levels with a stop loss of ₹730 and a target of ₹830, following appropriate risk management.
3] HCL Technologies: Buy at ₹1661.40, target ₹1780, stop loss ₹1600
HCLTECH is trading around ₹1,661.40 and, after a recent decline, has taken strong support and staged a sharp upside move. The stock is trading above its key 20, 50, 100, and 200 EMAs, indicating a positive trend. A breakout above the previous lower high signals trend reversal. RSI at 56 reflects improving momentum. Short-term traders may consider buying at current levels with a stop loss of ₹1,600 and a target of ₹1,780, following appropriate risk management.
4] Endurance Technologies: Buy at ₹2622, target ₹2825, stop loss ₹2525
ENDURANCE is trading around ₹2,622 and, after a recent decline, has seen accumulation at lower levels, taken strong support, and is now moving higher. The stock continues to trade above its key 200-day EMA, forming a strong base. On the 1-hour timeframe, it has delivered a sideways range breakout, indicating short-term strength. Traders may consider buying at current levels with a stop loss of ₹2,525 and a target of ₹2,825, following disciplined risk management.
5] Ramco Cements Limited: Buy at ₹1093.80, target ₹1200, stop loss ₹1040
RAMCOCEM is showing signs of strength after delivering a falling trendline breakout and moving higher. Currently trading around ₹1,093.80, the stock is forming a higher high and higher low structure on the 1-hour timeframe, indicating a short-term uptrend. Immediate support lies near ₹1,050, aligned with the previous accumulation zone. RSI at 63.04 reflects rising momentum and a strong reversal. Short-term traders may consider buying at current levels with a stop loss of ₹1,040 and a target of ₹1,200, 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.
