Breakout stocks to buy | Sumeet Bagadia’s stock recommendations today: The key benchmark indices of the Indian stock market continued to bear the brunt of sharp foreign fund outflows and rising US bond yields amid the raging conflict in the Middle East. Investors are also perturbed by elevated crude oil prices and the resultant decline in the rupee against the dollar, leading to a broad market sell-off in domestic equities, although IT shares bucked the downward trend after the recent correction.
The Nifty 50 index finished at 22,421, logging a weekly loss for the eighth straight session, whereas the BSE Sensex fell nearly 2000 points. The Bank Nifty index finished at 54,450. All three key benchmark indices witnessed strong selling throughout the truncated week.
Stock market prediction by Sumeet Bagadia
Sumeet Bagadia, Executive Director at Choice Broking, believes the Indian stock market bias has further weakened as the Nifty 50 index approaches its near-term support at 22,200. Going down memory lane, Sumeet Bagadia said that, in 2008, the Nifty 50 declined for seven consecutive weeks before witnessing a five-week positive move.
Speaking on the outlook for the Nifty 50 index, Sumeet Bagadia said, “The short-term structure continues to show weakness, with sustained selling pressure over the last eight weeks keeping the broader market under pressure. The index is currently holding around the 22,400 zone, but a sustained move above 22,600 would be important for a stronger recovery.”
Bagadia said that PCR at 0.99 indicates a relatively balanced options setup, while the highest Call OI concentration is seen around 22,400–22,500 and the highest Put OI concentration around 22,400–22,300, making this zone important for the near-term price action.
The Choice Broking expert said that if the 50-stock index closes above 22,600 for two consecutive sessions, a stronger pullback could be expected. Historically, in 2008, Nifty declined for seven consecutive weeks before witnessing a five-week positive move. Immediate support is seen at 22,100–22,200, while resistance is at 22,600/22,800.
Sumeet Bagadia’s breakout stock recommendations
Regarding stocks to buy on Monday, Sumeet Bagadia recommended these top 5 breakout stocks: Siemens Energy India (ENRIN), Aadhar Housing Finance, Styrenix, Tata Communications, and Sudarshan Chemicals.
1] Siemens Energy India (ENRIN): Buy at ₹3334 | Target ₹3660 | Stop Loss ₹3180.
The Siemens Energy India share has shown a fresh expansion in its daily price action after breaking out of its recent trading range and sustaining above the highs of the previous two sessions, with volume support. The stock has further strengthened its technical positioning by sustaining and closing above both the 21-Day and 200-Day EMAs, reflecting a supportive trend across short- and long-term timeframes. Momentum confirmation is also evident in the MACD, which has generated a positive crossover and indicates improving upside momentum. The breakout, therefore, carries support from price, volume and momentum indicators. With ₹3,180 as the key risk level, continued follow-through could keep the stock advancing towards the ₹3,660 target.
2] Aadhar Housing Finance: Buy at ₹449 | Target ₹490 | Stop Loss ₹427.
Aadhar Housing Finance’s share has shown a notable improvement in its daily price action after breaking above the highs of the previous three trading sessions, with rising volumes supporting the move and reflecting stronger participation. Prior to the breakout, the stock found demand near the major support zone of ₹430 to ₹433, with the lower Bollinger Band providing additional support. This support-based reversal has helped improve the short-term price structure.
3] Styrenix: Buy at ₹2055 | Target ₹2260 | Stop Loss ₹1950.
The stock has shown a positive shift in its daily price action after breaking out of a well-defined trading range, signalling renewed buying interest and a potential reversal in the prevailing trend.
4] Tata Communications: Buy at ₹1683 | Target ₹1850 | Stop Loss ₹1600.
The breakout stock is currently trading around ₹1,683 and appears to be showing a potential bullish setup. The stock has broken out of a sideways consolidation range, supported by a volume-backed candle, indicating increased buying participation. A major support zone is observed near 1,640, which also aligns with the lower Bollinger Band, reinforcing the support. Additionally, the RSI shows bullish divergence, suggesting improving momentum and a possible reversal from recent weakness.
5] Sudarshan Chemicals: Buy at ₹1241 | Target ₹1360 | Stop Loss ₹1184.
Sudarshan Chemicals’ share is showing improving price action on the daily chart after taking support near its rising trend line, with a volume-backed candlestick highlighting renewed buying participation from the support zone. The stock has further strengthened its short-term structure by sustaining above the 21-Day EMA, indicating that the recent recovery is gaining traction. Momentum is also turning favourable, as the RSI has rebounded from the 50 mark, suggesting a gradual shift towards positive momentum and improving buyer interest.
Disclaimer: This story is for educational and informational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified financial experts before making any investment decisions.
