Breakout stocks to buy or sell: The Indian stock market continued its positive momentum for the third consecutive session on Thursday, January 16, driven by global trends. Key US CPI data for December was below expectations, raising hopes that the US Federal Reserve might reduce interest rates sooner than anticipated.
Expectations for a US Fed rate cut, along with strong earnings from major US financial institutions like JP Morgan, Wells Fargo, Citibank, and Goldman Sachs, and the announcement of a ceasefire agreement between Israel and Hamas helped fuel optimism and supported the bullish market sentiment.
Amid these favourable developments, the Nifty 50 finished the day with a 0.42% increase, closing at 23,311, while the Sensex ended at 77,042, also reflecting a 0.42 per cent rise from the prior close. The Nifty Smallcap 100 index climbed 1.67 per cent, reaching 17,643, while the Nifty Midcap 100 index ended with a 1.08 per cent gain at 54,483.
Sumeet Bagadia, Executive Director at Choice Broking, believes that Indian stock market bias has slightly improved after the Nifty 50 index closed above 23,300 on Thursday. The Choice Broking expert said that the broader market is still under the bulls' grip, and their morale may get a further boost once the 50-stock index closes above the 23,500 mark. However, he advised a stock-specific approach after the subdued Infosys Q3 results and suggested looking at breakout stocks for intraday trading.
Speaking on the outlook for the Indian stock market today, Sumeet Bagadia said, "Overall, the Indian stock market bias has improved as the Nifty 50 index has closed above the 23,300 mark. This positive sentiment may improve decisively once the 50-stock index breaks above 23,500. However, a stock-specific approach is advised after the Infosys Q3 results. One can look at those stocks that look strong on the technical chart. Looking at breakout stocks can be a good option for intraday trading."
Regarding breakout stocks to buy today, Sumeet Bagadia recommended buying these five shares: Ramkrishna Forgings, V2 Retail, NACDAC Infrastructure, Stove Kraft, and eMudhra.
1] Ramkrishna Forgings: Buy at ₹990.40, target ₹1050, stop loss ₹950;
2] V2 Retail: Buy at ₹1871.75, target ₹2020, stop loss ₹1800;
3] NACDAC Infrastructure: Buy at ₹83, target ₹90, stop loss ₹80;
4] Stove Kraft: Buy at ₹942.80, target ₹1010, stop loss ₹905; and
5] eMudhra: Buy at ₹965.20, target ₹1030, stop loss ₹925.
Disclaimer: 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.
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