Breakout stocks to buy or sell: Benchmark indices Sensex and Nifty 50 extended their losing streak for a second straight session on Tuesday, January 6, led by profit-booking despite supportive global cues.
The Sensex slipped more than 500 points, or over 0.60%, to touch an intraday low of 84,900.10, while the Nifty 50 fell 0.50% to an intraday low of 26,124.75. Both indices recovered part of the losses by the close, with the Sensex ending down 376 points, or 0.44%, at 85,063.34, and the Nifty 50 settling 72 points lower, or 0.27%, at 26,178.70.
Stock market outlook
Nifty 50
On Tuesday, the Nifty 50 opened on a weak note and initially attempted a recovery, scaling an intraday high of 26,273.95. However, the index failed to sustain at higher levels and witnessed profit booking, slipping below an intraday support of 26,150, which highlights selling pressure at elevated levels.
On the outlook of Nifty 50, Sumeet Bagadia, Executive Director at Choice Broking, said, ” Nifty managed a modest rebound to close at 26,178, suggesting bargain buying near lower levels and a lack of aggressive downside follow-through.
On the technical front, immediate resistance is seen in the 26,300–26,350 zone, while key support is placed at 26,000–26,050.
The daily RSI stands at 55.45 and is trending lower, indicating moderating bullish momentum and a loss of upside strength in the near term. Volatility remained subdued, with India VIX marginally lower by 0.005% to 10.01, reflecting stable market expectations and absence of panic.
From a derivatives perspective, heavy call writing at the 26,200 strike establishes it as a crucial pivot and short-term resistance level. As long as the index holds above 26,100, a selective buy-on-dips strategy can be adopted, with strict stop-loss placed at 26,000.”
Bank Nifty
The Bank Nifty opened on a flat note and registered an intraday high of 60,305; however, the move lacked sustainability and the index slipped below the key psychological support of 60,100, indicating temporary intraday weakness.
On the outlook of Bank Nifty, Bagadia added, ” This price action suggests a phase of consolidation with a positive undertone. Immediate resistance is placed in the 60,400–60,500 zone, while the crucial support band of 59,800–59,900 remains important for maintaining near-term stability in the index.
On the daily charts, the RSI stands at 65.99 and is trending higher, suggesting strengthening momentum without entering the overbought territory. Traders are advised to maintain a positive 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 – IPCA Laboratories, SBI Cards and Payment Services, Dr. Agarwal’s Health Care, Apollo Tyres, and Petronet LNG.
1] IPCA Laboratories: Buy at ₹1469.60, target ₹1600, stop loss ₹1405
IPCALAB is trading around ₹1,469.60 and is showing strength after a wider-range trendline breakout with a decisive close above it. The stock has taken strong support near the 200-day EMA, indicating accumulation, and is trading above key 20, 50, and 200 EMAs. RSI at 59.06 reflects improving upside momentum. Short-term traders may consider buying at current levels with a stop loss at ₹1,405 and a target of ₹1,600, maintaining disciplined risk management.
2] SBI Cards and Payment Services: Buy at ₹901.55, target ₹965, stop loss ₹860
SBICARD is trading around ₹901.55 and has recently broken out of a sideways consolidation, indicating renewed strength. The stock is taking strong support and moving higher while trading above key 20, 50, and 200 EMAs, reflecting a positive trend. On the weekly chart, rising trendline support along with a symmetrical triangle formation signals further upside potential. RSI at 62.17 has bounced from lower levels and is trending upward. Short-term traders may consider buying at current levels with a stop loss at ₹860 and a target of ₹965, following prudent risk management.
3] Dr. Agarwal’s Health Care: Buy at ₹514.10, target ₹560, stop loss ₹490
AGARWALEYE is trading around ₹514.10 and has recently broken out of its previous 15-day sideways consolidation, supported by healthy volumes, indicating fresh buying interest. The stock is trading above key 20, 50, and 200 EMAs, reflecting a positive trend structure. RSI at 56.84 is moving upward, signaling improving momentum. Traders may consider buying near current levels with a stop loss at ₹490 and a target of ₹560, following disciplined risk management.
4] Apollo Tyres: Buy at ₹519.50, target ₹570, stop loss ₹495
APOLLOTYRE is trading around ₹519.50 and, after a recent decline, has consolidated in a sideways range and taken strong support at the lower end before giving a range breakout. The breakout is backed by healthy volumes, indicating renewed buying interest. The stock is forming a higher high and higher low structure and is trading above key 20, 50, and 200 EMAs, reflecting a positive trend. RSI at 57.21 is moving upward, signaling improving momentum. Traders may consider buying near current levels with a stop loss at ₹495 and a target of ₹570, following disciplined risk management.
5] Petronet LNG: Buy at ₹295.30, target ₹320, stop loss ₹280
PETRONET is trading around ₹295.30 and, following a recent corrective phase, has spent time consolidating within a well-defined sideways parallel channel. The stock has repeatedly found strong support near the lower band of this range and has now staged a decisive upside breakout, indicating a potential shift back into a positive short-term trend. The breakout is supported by healthy volumes, indicating renewed buying interest. The stock is trading above key 20, 50, and 200 EMAs, reflecting a positive trend. RSI at 70.42 remains in a higher trajectory, signaling strong momentum. Traders may consider buying near current levels with a stop loss at ₹280 and a target of ₹320, maintaining 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.
