Breakout stocks to buy or sell: Indian indices, the Sensex and the Nifty 50, declined for the third consecutive session on Wednesday, January 7, amid mixed global cues.
The Sensex dropped 102 points, or 0.12%, to end at 84,961.14, while the Nifty 50 settled at 26,140.75, down 38 points, or 0.14%. The mid and small-cap indices outperformed. The BSE Midcap and Smallcap indices rose 0.47% and 0.12%, respectively.
Stock market outlook
Nifty 50
On Wednesday, the Nifty 50 closed flat at 26,140, indicating indecision at higher levels after the recent up move. The index continues to trade near its short-term averages, suggesting a pause in momentum, though selling pressure remains limited as key supports are being held.
Speaking on the Nifty 50 outlook, Sumeet Bagadia, Executive Director at Choice Broking, said, ” On the 1-hour chart, Nifty is consolidating in a narrow range, with repeated rejection near 26,200–26,250 and buying interest around 26,000–26,050. The 200-hour EMA near 26,040 is acting as a strong base.
Immediate resistance is placed at 26,200–26,250, while 26,000–26,050 remains a crucial support zone. Overall, the near-term bias remains cautious but stable, with consolidation likely to persist.”
Bank Nifty
Bank Nifty is trading around 59,950–60,000 and is consolidating after a sharp recent upmove, on January 7.
On the Bank Nifty outlook, he added, ” The daily chart indicates a mild corrective phase within a downward-sloping channel, suggesting short-term profit booking rather than a trend reversal. The broader structure remains constructive as the index continues to trade above key medium-term averages.
On the 1-hour chart timeframe, the 20-day EMA near 60,000 is acting as immediate resistance, while the 50-day EMA around 59,825 provides near-term support, followed by 59,600.
On the 1-hour chart, the index is trading within a descending channel, reflecting short-term consolidation. Support is placed near 59,800–59,850, while 60,200–60,300 remains a key resistance zone. Holding above 59,600 keeps the structure intact, while a breakout above resistance could revive upside momentum.”
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 – Godrej Industries, Cyient, Delhivery, Hyundai Motor, and Kalyan Jewellers India.
1] Godrej Industries: Buy at ₹1054.20, target ₹1160, stop loss ₹1000
GODREJIND is trading near ₹1,054.20 and is showing early signs of a reversal after taking support at its 20-day EMA. A strong bullish candle indicates renewed buying interest. The stock has also broken above its falling trendline, signaling potential bullish continuation. It is trading above its 20-day and 50-day EMAs and is approaching the 200-day EMA, confirming improving momentum. Accumulation support lies near ₹1,030. Short-term traders may consider buying with a target of ₹1,160 and a stop loss at ₹1,000.
2] Cyient: Buy at ₹1176.90, target ₹1285, stop loss ₹1125
CYIENT is showing signs of strength after delivering a falling trendline breakout, supported by healthy volumes, indicating renewed buying interest. On the downside, immediate support is placed around ₹1,150, where accumulation activity is visible. RSI at 59.02 is taking support near lower levels and is trending upward, reflecting improving momentum. As the stock has confirmed a trendline breakout, short-term traders may consider buying at current levels with a stop loss of ₹1,125 and a target of ₹1,285, provided disciplined risk management is followed.
3] Delhivery: Buy at ₹422.25, target ₹460, stop loss ₹400
DELHIVERY is trading around ₹422.25 and has recently delivered a sideways range breakout, after which the stock is moving higher, indicating improving momentum. It has also given a strong close above the 200-Day EMA, reflecting strengthening price structure. RSI at 58.28 is rising from the recent oversold zone, supporting the bullish bias. As the breakout is confirmed, short-term traders may consider buying at current levels with a stop loss of ₹400 and a target of ₹460, maintaining disciplined risk management.
4] Hyundai Motor: Buy at ₹2362, target ₹2600, stop loss ₹2245
HYUNDAI is trading around ₹2,362 and is showing signs of strength after delivering a recent descending triangle breakout, indicating a bullish reversal. The stock is trading above its key 20, 50, 100 and 200 EMAs, reflecting a strong underlying trend. On the downside, it has taken solid support at the previous accumulation zone, where buying interest is visible. RSI at 57.62 is moving upward, supporting positive momentum. As the stock has confirmed a resistance breakout, short-term traders may consider buying at current levels with a stop loss of ₹2,245 and a target of ₹2,600, following disciplined risk management.
5] Kalyan Jewellers India: Buy at ₹520.75, target ₹570, stop loss ₹494
KALYANKJIL is trading around ₹520.75 and has rebounded strongly after finding solid support near the ₹460 zone, indicating strong demand at lower levels. The stock has given a decisive close above its key 20, 50 and 200 EMAs along with a previous swing high breakout, reflecting bullish strength. RSI at 67.50 shows rising momentum. Short-term traders may consider buying at current levels with a stop loss of ₹494 and a target of ₹570, 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.
