Stocks to buy or sell: Despite buying in banking stocks, weak global cues continued to drag the Indian stock market on Thursday. The Nifty 50 index finished lower for the fifth straight session as the 50-stock index lost 216 points and closed at 22,488. The BSE Sensex nosedived 617 points and finished at 73,885. However, the Bank Nifty index ended higher as the index gained 181 points and closed at 48,682. The mid-cap index crashed 1.21 percent in the broad market, whereas the small-cap index nosedived 1.33 percent. The volatility in the Indian stock market extended for another session as the India VIX Index finished at 24.18.
According to Sumeet Bagadia, executive Director at Choice Broking, despite high volatility on Dalal Street, some stocks gave fresh breakouts on chart patterns. Some of those breakout stocks are still looking strong, and one can look at them today during intraday trading.
Breakout stocks today
Speaking on the outlook for Nifty today, Sumeet Bagadia said, “The Nifty 50 index has breached its crucial support of 22,500 on a closing basis. The 50-stock index now has immediate support in the 22,350 to 22,400 range. We can expect some more downside pressure on breaching this support in the Indian stock market.”
Asked about the high volatility ahead of the Lok Sabha Election results, Bagadia said, “The volatility in the Indian stock market is expected to exist till the final Lok Sabah Election results are out. So, this volatility is expected to continue till 4th June 2024, when Lok Sabha Election 2024 results are coming. Until then, one must remain vigilant about the India VIX Index movement. The index faces resistance at 25, whereas support is placed at 23. On breaching the 25 resistance, we may expect the volatility index of the Indian stock market to touch the 28 mark soon.”
Bagadia suggested intraday traders and investors look at breakout stocks that are still strong on the technical chart and suggested buying these five shares — KNR Construction, Linde India, Heritage Foods, Emami, and RHI Magnesita.
Breakout stocks to buy today
1] KNR Construction: Buy at ₹302.60, target ₹335, stop loss ₹287;
2] Linde India: Buy at ₹9145, target ₹9666, stop loss ₹8830;
3] Heritage Foods: Buy at ₹407, target ₹425, stop loss ₹395;
4] Emami: Buy at ₹612, target ₹645, stop loss ₹588; and
5] RHI Magnesita: Buy at ₹736.35, target ₹777, stop loss ₹710.
Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
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Published: 31 May 2024, 09:20 AM IST
