Breakout stocks to buy or sell: Sumeet Bagadia recommends five shares to buy today

Breakout stocks to buy or sell: Following the global market cues led by China, the Indian stock market ended higher on Monday. The Nifty 50 index finished 141 points upside at 24,272, the BSE Sensex ended 458 points north at 80,261, and the Nifty Bank index added 62 points and closed at 52,118. Cash market volumes on the NSE fell to ₹0.98 lakh crore. The broad market indices rose more than the Nifty 50 index even as the advance-decline ratio stayed high at 1.77:1.

Sumeet Bagadia's breakout stock recommendations

Sumeet Bagadia, Executive Director at Choice Broking, believes that overall Indian stock market bias is positive as the Nifty 50 index is sustaining above the psychological 24,000 mark. However, the Choice Broking expert advised investors to avoid taking bullish positions in bulk until the 50-stock index breaks above the 24,400 mark decisively. He advised day traders to maintain a stock-specific approach and find technically strong stocks. He said that breakout stocks can be a good bet for intraday trading.

Speaking on the outlook of the Indian stock market today, Sumeet Bagadia said, "Overall, the Indian stock market bias is positive as the Nifty 50 index is sustaining above the crucial 21-DEMA support of 24,050. However, this is insufficient to establish bullish sentiments on Dalal Street until the 50-stock index breaks above the 24,400 mark. On breaking below the 24,050 mark, the frontline index may touch the 23,600 to 23,550 mark. Hence, maintaining a stock-specific approach is advisable. One can look at breakout stocks for intraday trading."

Regarding breakout stocks to buy today, Sumeet Bagadia recommended buying these five shares: NELCO, Malu Paper Mills, Pokarna, DMCC, and Siyaram Silk Mills.

Stocks to buy today

1] NELCO: Buy at ₹1234.90, target ₹1305, stop loss ₹1192;

2] Malu Paper Mills: Buy at ₹52.96, target ₹57, stop loss ₹51;

3] Pokarna: Buy at ₹1225.10, target ₹1333, stop loss ₹1180;

4] DMCC: Buy at ₹328.50, target ₹350, stop loss ₹316; and

5] Siyaram Silk Mills: Buy at ₹866.85, target ₹930, stop loss ₹835.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.