Sumeet Bagadia of Choice Broking shared his expert recommendations on five breakout stocks worth considering: Shree Digvijay Cement, STEL Holdings, Glenmark Pharma, GLAXO, and ZF Commercial Vehicle.
Despite a bearish trend and heightened volatility, these stocks have shown promising technical breakouts, suggesting potential upward movements.
Bagadia pointed out that the Indian stock market concluded lower for the third consecutive session on Tuesday, influenced by weakness in global markets.
The frontline indices experienced significant volatility throughout the session but managed to close above crucial support levels.
The Nifty 50 index, in particular, held firm above the critical range of 22,750 to 22,800, despite the turbulence. A key factor in the current market scenario is the India VIX Index, a widely used measure of market volatility.
According to Bagadia, the India VIX Index has breached its upper range of 23, closing at 24.20. He anticipates that the index could soon reach the 26 to 28 mark, suggesting increased volatility in the days ahead.
He reassures investors that this heightened volatility, especially ahead of the Lok Sabha Election 2024 results, is not unexpected. The India VIX’s movement within the 23 to 25 range should not be a cause for concern, as breaking past the 25 mark could indicate further upward potential.
Given the current market conditions, Bagadia told the importance of focusing on stocks with strong fundamentals and technical indicators. His five recommendations are based on robust performance in recent sessions and favorable chart patterns. Breakout stocks, by definition, have surpassed resistance levels, signaling a potential upward trend that savvy investors can capitalize on.
The first stock on Bagadia’s list is Shree Digvijay Cement, which is recommended for purchase at ₹110.25, with a target price of ₹116 and a stop loss at ₹106. This stock has demonstrated a solid breakout and is poised for further gains. Next is STEL Holdings, suggested for buying at ₹384, targeting ₹405, and a stop loss at ₹370. Its recent performance indicates a strong potential for upward movement.
Glenmark Pharma is another notable mention, with a buy recommendation at ₹1160, a target of ₹1275, and a stop loss at ₹1095. This pharmaceutical company has shown resilience and growth potential, making it an attractive option for investors. GLAXO, recommended at ₹2480.50 with a target of ₹2635 and a stop loss at ₹2390, also stands out for its robust breakout and promising outlook.
ZF Commercial Vehicle is advised for purchase at ₹17162.30, with a target of ₹18222 and a stop loss at ₹16500. This stock’s recent breakout suggests it could see significant gains, making it a valuable addition to an investor’s portfolio.
While the market remains volatile, Bagadia’s expert analysis highlights opportunities within this turbulence. By focusing on stocks with strong technical breakouts and sound fundamentals, investors can navigate the current market landscape with greater confidence.
As always, it is crucial to conduct thorough research and consider consulting with certified financial advisors before making any investment decisions.
