Breakout stocks to buy or sell: Sumeet Bagadia recommends five shares to buy today — 6 January 2026

Breakout stocks to buy or sell: The Indian stock market closed in the red on Monday, January 5, despite supportive global signals, as investors engaged in profit-taking in select heavyweight stocks amid heightened geopolitical concerns following a US military strike on Venezuela and the capture of President Nicolas Maduro and his wife.

The Sensex declined 322 points, or 0.38%, to settle at 85,439.62, while the Nifty 50 slipped 78 points, or 0.30%, to close at 26,250.30. Broader markets fared better, with the BSE Midcap index edging up 0.05% and the Smallcap index gaining 0.07%.

Stock market outlook

Nifty 50

The Nifty 50 opened on a strong positive note and registered a fresh all-time high of 26,373; however, it failed to sustain at higher levels and slipped to an intraday low of 26,210, indicating selling pressure at elevated levels, on Monday, January 5.

On the Nifty outlook, Sumeet Bagadia, Executive Director at Choice Broking, said, " The index briefly breached the key support at 26,300 and confirmed a breakdown below it, closing at 26,244, which reinforces a short-term bearish undertone. Immediate resistance is placed in the 26,400–26,450 zone, while crucial support is located at 26,200–26,150.

The daily RSI stands at 58.09 and is trending lower, reflecting a loss of bullish momentum. Volatility remained elevated, with India VIX rising 6.06 percent to 10.02. Derivatives data highlights heavy call writing at the 26,300 strike, establishing it as a critical pivot level. As long as the index sustains above 26,200, a selective buy-on-dips strategy remains favorable, with strict stop-losses maintained at 26,150."

Bank Nifty

On Monday, the Bank Nifty opened on a strong positive note and registered a fresh all-time high at 60,437, but showed signs of unsustainability and slipped below the key psychological support of 60,000, touching an intraday low of 59,859, indicating profit booking at higher levels.

Further, commenting on Bank Nifty outlook, Bagadia said, " It managed to recover and close at 60,044, showcasing buying interest near lower levels and the underlying strength of the trend. This price action suggests a healthy consolidation after a sharp rally rather than a trend reversal. Immediate resistance is placed in the 60,300–60,400 zone, while the crucial support band of 59,700–59,800 remains important for maintaining near-term stability in the index.

On the daily charts, the RSI stands at 65.05 and is trending lower, suggesting moderation in momentum while still remaining in a bullish zone."

Bagadia advised traders to maintain a positive bias and follow a buy-on-dips strategy near key support levels, with disciplined risk management through appropriate stop-loss placements.

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 - PG Electroplast, Motherson Sumi Wiring India, Emcure Pharmaceuticals, CreditAccess Grameen, and Voltas.

1] PG Electroplast: Buy at ₹630.30, target ₹690, stop loss ₹600

PGEL is trading around ₹630.60 and has witnessed a decisive falling trendline breakout, followed by continued upward momentum. The stock is showing improving strength, with RSI at 67.90 indicating a rising trend. Strong support is placed near ₹610. Short-term traders may consider buying at current levels with a stop loss of ₹600 for a target of ₹690, maintaining disciplined risk management.

2] Motherson Sumi Wiring India: Buy at ₹52.05, target ₹56.70, stop loss ₹49.10

MSUMI is trading around ₹52.05 and has delivered a wider range trendline breakout, indicating renewed bullish momentum. The breakout is supported by healthy volumes, signaling strong participation. The stock is trading above its 20, 50, and 200 EMAs, reflecting trend strength. Immediate support is seen near ₹50. RSI at 71.96 suggests a rising bullish bias. Short-term traders may consider buying at current levels with a stop loss of ₹49.10 for a target of ₹56.70, with appropriate risk management.

3] Emcure Pharmaceuticals: Buy at ₹1489.50, target ₹1625, stop loss ₹1420

EMCURE is trading around ₹1,489.50 and has recently witnessed a sideways range breakout, indicating the resumption of upward momentum. The stock is trading above its 20, 50, 100, and 200 EMAs, reflecting a strong bullish structure. RSI at 64.03 signals a sideways-to-upside breakout, supporting the uptrend. Short-term traders may consider buying at current levels with a stop loss of ₹1,420 for a target of ₹1,625, while adhering to appropriate risk management.

4] CreditAccess Grameen: Buy at ₹1331.30, target ₹1460, stop loss ₹1265

CREDITACC is trading around ₹1,331.30 and has recently witnessed a falling trendline breakout, indicating a potential trend reversal. The breakout is supported by healthy volumes, reflecting improved buying interest. The stock has closed above its key 20, 50, and 200 EMAs, signaling strengthening momentum. RSI at 55.06 remains stable, suggesting scope for further upside. Short-term traders may consider buying at current levels with a stop loss of ₹1,265 for a target of ₹1,460, while maintaining appropriate risk management.

5] Voltas: Buy at ₹1476.80, target ₹1625, stop loss ₹1410

VOLTAS is trading around ₹1,476.80 and has recently delivered a symmetrical triangle breakout, indicating a continuation of the bullish trend. The stock has closed above its key 20, 50, and 200 EMAs, reflecting strong price strength. RSI at 68.98 is in a rising zone, supporting positive momentum. Strong support is placed near the breakout area. Short-term traders may consider buying at current levels with a stop loss of ₹1,410 for a target of ₹1,625, while following appropriate 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.