Stocks to buy or sell: Following weakness in the global market, the Indian stock market concluded lower for the third consecutive session on Tuesday. All three frontline indices remained highly volatile throughout the Tuesday session and ended lower. However, the Nifty 50 index sustained above the crucial support range of 22,750 to 22,800. After trading in the 19 to 23 range, the India VIX Index finally breached the upper range and ended at the 24.20 mark. So, the volatility is expected to further rise. While the Indian stock market had a range-bound session, some stocks witnessed a fresh breakout on the chart pattern. A breakout stock refers to a stock that has broken through a resistance level, indicating a potential upward trend.
According to Sumeet Bagadia, Executive Director at Choice Broking, many shares have given fresh technical breakouts on the chart pattern despite high volatility on Dalal Street. A chart pattern is a distinct formation on a stock chart that creates a trading signal, or a sign of future price movements. The Choice Broking expert emphasized that some of them are still available at discounted price and one can look at those breakout stocks to day. This should make you feel informed and knowledgeable about the market trends.
Also Read: Trade setup for stock market today: Five stocks to buy or sell on Wednesday
Breakout stocks today
Sumeet Bagadia of Choice Broking reassured that the Nifty 50 index is nearing its crucial support of 22,750 to 22,800, and the initial hours of Wednesday’s session will be crucial. If the 50 stock index slips below this support, then more downside can be possible in the frontline index. He acknowledged that volatility on Dalal Street is expected to escalate further as the India VIX Index has breached its upper range of 23, and it may soon touch the 26 and 28 mark. However, Bagadia emphasized that the rising India VIX Index shouldn’t be a cause for concern as volatility ahead of the Lok Sabha Election 2024 results is widely anticipated. He pointed out that the India VIX today is in the 23 to 25 range, and the volatility index may provide more upside movement once it crosses the hurdle placed at the 25 mark. This should help alleviate any anxiety about the market volatility.
Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — May 29
Bagadia strongly advised traders and investors to concentrate on stocks that demonstrate positive fundamentals and technicals. He specifically recommended buying five breakout stocks today — Shree Digvijay Cement, STEL Holdings, Glenmark Pharma, GLAXO, and ZF Commercial Vehicle. These stocks have shown robust performance in recent sessions and are expected to sustain their upward trend based on their financial health and market conditions.
Breakout stocks to buy today
1] Shree Digvijay Cement: Buy at ₹110.25, target ₹116, stop loss ₹106;
2] STEL Holdings: Buy at ₹384, target ₹405, stop loss ₹370;
3] Glenmark Pharma: Buy at ₹1160, target ₹1275, stop loss ₹1095;
4] GLAXO: Buy at ₹2480.50, target ₹2635, stop loss ₹2390; and
5] ZF Commercial Vehicle: Buy at ₹17162.30, target ₹18222, stop loss ₹16500.
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: 29 May 2024, 08:54 AM IST