Breakout stocks to buy or sell: Amid New Year 2026 celebrations, Sumeet Bagadia recommends five shares to buy today

Breakout stocks to buy or sell: The Indian stock market saw buying across segments on the final trading day of 2025, as short covering lifted sentiment amid hopes that the year ahead will outperform the current one. Optimism was fueled by expectations of stronger earnings growth, progress on an India–US trade agreement, and the return of foreign investors to domestic equities.

The Sensex surged 546 points, or 0.64%, to end at 85,220.60, with Reliance Industries, Kotak Mahindra Bank, and Axis Bank leading the gains. Meanwhile, the Nifty 50 climbed 191 points, or 0.74%, to settle at 26,129.60. Broader markets also advanced, with the BSE Midcap index rising 1% and the Smallcap index gaining 1.19%.

Stock market outlook

Nifty 50

On 31 December 2025, the Nifty 50 closed at 26,129, up by 190 points, confirming a strong bullish session and positive price acceptance at higher levels. The index registered a decisive upside move and, indicating sustained buying interest and improved momentum.

On the Nifty 50 outlook, Sumeet Bagadia, Executive Director at Choice Broking, said, “ On the daily timeframe, Nifty formed a strong bullish candlestick, signalling a breakout from the recent consolidation zone. The close above prior resistance confirms a trend reversal from sideways to upward bias, with price sustaining above short-term moving averages, reinforcing bullish market structure.

On the 1-hour chart, the index exhibited a clear bullish structure, forming higher highs and higher lows after resolving its range on the upside. Intraday pullbacks were shallow and quickly absorbed, reflecting strong demand, short covering, and buy-on-dips activity.

From a technical perspective, immediate resistance is placed at 26,250–26,300. On the downside, the 26,000–26,050 zone remains a key support area, where buyers are likely to emerge. Overall, the index remains in a consolidation phase with cautious sentiment prevailing."

Bank Nifty

On 31 December 2025, Bank Nifty closed at 59,581, up by 410 points, confirming a strong bullish session. The index registered a decisive upside move and closed near the session high, indicating sustained buying pressure and positive price acceptance at higher levels.

On the Bank Nifty outlook, he added, "On the daily timeframe, Bank Nifty formed a bullish candle with a higher close, signalling a breakout from the recent consolidation range. The close above prior resistance confirms trend resumption, with momentum indicators turning positive and price holding well above short-term moving averages, reinforcing bullish structure.

On the 1-hour chart, the index displayed a clear bullish reversal pattern, marked by higher highs and higher lows. The earlier range-bound structure was resolved on the upside, with strong follow-through buying and minimal retracement, reflecting strong intraday demand and short covering.

From a technical perspective, immediate resistance is placed at 59,800–59,900. On the downside, 59,300–59,400 remains a crucial support zone. Overall, the index shows resilient but cautious strength, remaining in a consolidation phase with a positive bias."

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 - Jindal Steel, Sapphire Foods India, Gujarat State Petronet, Devyani International, and Steel Authority of India.

1] Jindal Steel: Buy at ₹1053.80, target ₹1145, stop loss ₹1008

Jindal Steel is trading near ₹1,053.80 and is showing a bullish reversal after breaking out above its falling trendline, suggesting a shift in trend and renewed upside momentum. The stock is trading above its 20, 50, and 200-day EMAs, confirming strong underlying strength. Accumulation support is placed near ₹1,025. Short-term traders may consider buying at current levels, with an upside target of ₹1,145 and a stop loss at ₹1,008, while maintaining disciplined risk management.

2] Sapphire Foods India: Buy at ₹257.06, target ₹280, stop loss ₹245

Sapphire Foods is trading around ₹257.05 after forming a recent bottom and witnessing a strong bounce, indicating improving strength. The stock has broken out of a sideways range with a decisive close, engulfing the previous four-day consolidation, signaling bullish momentum. RSI at 57.76 reflects a strong reversal from oversold levels. Short-term traders may consider buying at current levels, targeting ₹280 with a stop loss at ₹245, while following disciplined risk management.

3] Gujarat State Petronet: Buy at ₹306.25, target ₹335, stop loss ₹291

GSPL is trading around ₹306.25 after rebounding from strong long-term support near ₹280. The stock has recently broken out of a sideways range and is trading above its 20, 50, and 100-day EMAs, indicating improving momentum. Immediate support lies at ₹295–300. Short-term traders may consider buying at current levels, targeting ₹335 with a stop loss at ₹291, following strict risk management.

4] Devyani International: Buy at ₹147.95, target ₹160, stop loss ₹142

Devyani is trading near ₹147.95 and has successfully retested its falling trendline breakout, reversing higher with increased volumes, reflecting strong buying interest and firm conviction behind the breakout. The stock is trading above its 20- and 50-day EMAs and is approaching its 200-day EMA, indicating improving trend strength and a gradual transition toward a bullish structure. Accumulation support is placed near ₹144. Short-term traders may consider buying at current levels, targeting ₹160 with a stop loss at ₹142, while maintaining disciplined risk management.

5] Steel Authority of India: Buy at ₹146.99, target ₹158, stop loss ₹140

SAIL is trading around ₹146.99 and is showing strength after a decisive breakout above its previous higher-high resistance with a strong closing. The stock is trading above its 20, 50, 100, and 200 EMAs, reflecting bullish structure. Immediate support lies at ₹142–143. RSI at 72.01 signals strong momentum. Short-term traders may consider buying at current levels, targeting ₹158 with a stop loss at ₹140, 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.