Stocks to buy or sell: Following a significant downturn on Tuesday due to the Lok Sabha Election results, the Indian stock market showed signs of recovery on Wednesday. The Nifty 50 index surged by 735 points, closing at 22,620, while the BSE Sensex skyrocketed by 1303 points, concluding at 74,382. The Bank Nifty index also saw a substantial increase, ending 2126 points higher at 49,054. Despite the ongoing volatility, the India VIX Index plummeted by over 29 percent, closing at 18.88, indicating a potential stabilization in the market.
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Intraday trading tips
Sumeet Bagadia, Executive Director at Choice Broking, believes the Indian stock market has erased the losses caused by the stock market crash on Tuesday. However, the Choice Broking expert maintained that it is still a relief rally. He said the market mood may improve once the Nifty 50 index breaches above 23,000 on a closing basis. He said a good number of stocks gave a breakout on Wednesday, and some still possess steam for the upside. Bagadia advised traders to look at those breakout stocks today for intraday trading.
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Breakout stocks today
Speaking on the outlook for the Nifty today, Sumeet Bagadia said, “The Nifty 50 index has broken the hurdle placed at 22,500 on Wednesday, but the 50-stock index needs to close above 23,000 decisively to ensure the bullish trend on Dalal Street. Nifty today has immediate resistance at 22,250 to 22,300, whereas it is facing immediate hurdle at 22,750 to 22,800.”
“The India VIX Index crashed over 29 percent on Wednesday, which means volatility in the Indian stock market is expected to continue. The immediate support for the India VIX today is 18, while the index has resistance at 25. Breaking below 18 would mean some stability in the market,” Bagadia said.
Speaking on intraday trading tips, Sumeet Bagadia advised traders to look at some breakout stocks today as some are still available at attractive valuations. Sumeet Bagadia recommended buying these five breakout stocks today: KNR construction, ABFRL, MPS Ltd, Bector Food, and STEL.
Breakout stocks to buy today
1] KNR Construction: Buy at ₹339.25, target ₹360, stop loss ₹327;
2] ABFRL: Buy at ₹305, target ₹320, stop loss ₹294;
3] MPS: Buy at ₹1951.50, target ₹2070, stop loss ₹1880;
4] Bector Food: Buy at ₹1420.75, target ₹1515, stop loss ₹1368; and
5] STEL: Buy at ₹419, target ₹445, stop loss ₹403.
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: 06 Jun 2024, 08:48 AM IST
