In a week marked by increased market volatility and the Indian stock market experiencing a significant downturn, Sumeet Bagadia, Executive Director at Choice Broking, has identified five breakout stocks for intraday trading. Despite the India VIX Index breaching crucial levels and the Nifty 50 falling below key support, Bagadia remains optimistic about specific stocks that show promising chart patterns.
The India VIX Index has breached the immediate hurdle of 23 and is now facing resistance at 25. According to Bagadia, if the volatility index closes above this level, it could soon touch the 28 mark, indicating more turbulence ahead for the Indian stock market.
This increased volatility can be attributed to ongoing Lok Sabha elections and global market jitters, particularly due to heightened tensions in the Middle East. As a result, the Indian market fell for the fourth consecutive session, with the Nifty 50 index breaking the critical 22,750 support level and closing near 22,700.
Despite the bearish sentiment and selling pressure on key indices, Bagadia has identified breakout opportunities in five stocks: Mazagon Dock, Grindwell, Bajaj Auto, Sumitomo Chemical, and Paras Defence. These stocks have shown resilience and strong chart patterns, making them suitable for intraday trading in a volatile market.
Mazagon Dock is recommended at a buy price of ₹3357.35 with a target of ₹3535 and a stop loss at ₹3250. This stock has displayed a clear breakout pattern, suggesting it could continue its upward trajectory if market conditions remain favorable.
Grindwell is another stock on Bagadia’s radar, with a buy price of ₹2590.55, a target of ₹2750, and a stop loss at ₹2500. The stock’s technical strength and positive momentum make it an attractive option for traders seeking steady gains.
Bajaj Auto, recommended at a buy price of ₹9070 with a target of ₹9450 and a stop loss at ₹8850, has shown robust fundamentals and recent price movements that indicate potential for short-term profit despite market volatility.
Sumitomo Chemical is also on the list, with a buy price of ₹489.55, a target of ₹515, and a stop loss at ₹473. The chemical sector, represented by Sumitomo, is expected to perform well, and the current pricing offers a potential entry point for traders.
Paras Defence is recommended with a buy price of ₹945.60, a target of ₹1000, and a stop loss at ₹910. The defense sector’s growth prospects and recent investments position Paras Defence as a strong candidate for short-term gains.
Bagadia advises investors to monitor these stocks closely, set appropriate stop losses, and be prepared for increased market swings. The overall market sentiment remains weak, and more downside could be expected if the Nifty 50 continues to breach support levels. However, these breakout stocks offer a glimmer of hope for traders looking to navigate the turbulent market landscape.
As Friday marks the last session before the Lok Sabha exit polls, traders should brace for potential market reactions and increased volatility. Bagadia’s recommendations provide a strategic approach for capitalizing on specific stocks that show strong technical indicators. By adhering to set stop losses and targeting the recommended levels, investors can manage risk effectively while aiming for profitable trades in the short term.
