In a challenging market environment, Sumeet Bagadia, Executive Director at Choice Broking, has identified five breakout stocks that investors should consider buying today, October 23, 2024. The recommended stocks are City Union Bank, Pansari Developers, Saurashtra Cement, Poly Medicure, and Tube Investments of India.
Market Overview
The Indian stock market faced significant declines on October 22, 2024, with the Nifty 50 index losing 309 points to close at 24,472. This marked a two-month low for the index. The BSE Sensex also experienced a steep drop of 930 points, settling at 80,220. The Nifty Bank index nosedived by 705 points, ending at 51,257. Both Mid-cap and Small-cap indices came under severe selling pressure, falling between 2.5% to 3.8%. Global cues were negative as investors assessed third-quarter corporate earnings amid uncertainty regarding global economic growth and interest rate trajectories.
Sensex and Nifty Analysis
Sumeet Bagadia believes that the Indian stock market’s bias has weakened significantly after the Nifty 50 index broke below the crucial support level of 24,700. He indicated that immediate support for the Nifty is now at 24,000, and if this level fails to hold, further selling pressure could ensue. The Bank Nifty index also reflects a bearish trend and could touch levels between 49,350 and 49,300 if it breaks below the psychological mark of 51,000.Bagadia advised investors to adopt a stock-specific approach in this bear-hit market and focus on technically strong stocks that show potential for breakout.
Recommended Stocks
- City Union Bank:
- Buy at ₹168.51
- Target: ₹180
- Stop Loss: ₹162
City Union Bank’s stock opened positively today, indicating bullish momentum.
- Pansari Developers:
- Buy at ₹131.46
- Target: ₹140
- Stop Loss: ₹126
Pansari Developers has shown strong technical patterns that suggest upward movement.
- Saurashtra Cement:
- Buy at ₹124.71
- Target: ₹132
- Stop Loss: ₹120
Saurashtra Cement is positioned well for potential gains based on current market trends.
- Poly Medicure:
- Buy at ₹2,524.75
- Target: ₹2,666
- Stop Loss: ₹2,436
Poly Medicure continues to exhibit strength in its price action.
- Tube Investments of India:
- Buy at ₹4,486.35
- Target: ₹4,750
- Stop Loss: ₹4,320
Tube Investments of India shows promising technical indicators for potential gains.
Conclusion
Investors should consider Sumeet Bagadia’s recommendations for these breakout stocks as potential opportunities amidst current market challenges. With bearish trends in play, it’s crucial for traders to monitor their positions closely and adhere to stop-loss levels to manage risk effectively.
Disclaimer: The views and recommendations above are those of individual analysts and brokerage firms and do not reflect the views of Mint. Investors are advised to consult certified experts before making any investment decisions as market conditions can change rapidly.This article aims to provide insights into current stock recommendations while emphasizing prudent trading strategies in light of recent market trends.
