As the Indian stock market navigates fluctuating global sentiments, Sumeet Bagadia, Executive Director at Choice Broking, has identified five breakout stocks to consider for intraday trading on December 17, 2024. With the Nifty 50 index maintaining a positive bias above the critical level of 24,500, Bagadia’s recommendations reflect a strategic approach for traders looking to capitalize on potential gains.
Current Market Overview
Despite a recent downturn where the Nifty 50 index closed down by 119 points at 24,649 and the BSE Sensex fell by 433 points to end at 81,699, Bagadia remains optimistic about the market’s trajectory. He emphasizes that if the Nifty can reclaim the psychological barrier of 24,700, it could signal a bullish trend for traders. The overall sentiment is supported by robust performances in mid-cap and small-cap indices, which outperformed major benchmarks with gains of 0.77% and 0.64%, respectively.
Recommended Breakout Stocks
1. 360 One Wam
- Buy Price: ₹1239.95
- Target Price: ₹1300
- Stop Loss: ₹1195
- Company Overview: 360 One Wam Ltd is a financial services company that has demonstrated strong performance with an annual revenue growth of 41.72%, significantly outpacing its three-year CAGR of 20.58%. The stock has provided impressive returns over the past three years, with a total return of 229.49% compared to the Nifty 100’s 43.8% during the same period.
- Financial Insights: As of December 16, 2024, the share price was around ₹1242.40, reflecting a 74.39% return over one year. The company reported a profit of ₹245.49 crore against a total income of ₹890.43 crore for the year ending September 2024.
2. VA Tech Wabag
- Buy Price: ₹1890
- Target Price: ₹2020
- Stop Loss: ₹1825
- Company Overview: VA Tech Wabag is a leading water treatment company specializing in sustainable water solutions. The firm has been gaining traction due to increasing global demand for clean water solutions and efficient waste management.
- Market Position: With ongoing projects and government initiatives focusing on water infrastructure, VA Tech Wabag is well-positioned for growth in both domestic and international markets.
3. Prestige Estates Projects
- Buy Price: ₹1825
- Target Price: ₹1910
- Stop Loss: ₹1760
- Company Overview: Prestige Estates is one of India’s leading real estate developers with a diverse portfolio that includes residential, commercial, and hospitality projects. The company has shown resilience in navigating market challenges and continues to expand its footprint across major cities.
- Growth Potential: With urbanization trends and increased housing demand in India, Prestige Estates is expected to benefit significantly from these macroeconomic factors.
4. Man Infraconstruction
- Buy Price: ₹244
- Target Price: ₹260
- Stop Loss: ₹235
- Company Overview: Man Infraconstruction is engaged in construction and engineering services across various sectors including infrastructure development and real estate. The company’s robust project pipeline positions it favorably for future growth.
- Financial Performance: The stock has shown consistent performance with increasing order inflow and execution capabilities enhancing its market value.
5. PCBL Chemical
- Buy Price: ₹488
- Target Price: ₹515
- Stop Loss: ₹470
- Company Overview: PCBL (Phillips Carbon Black Limited) is one of India’s largest manufacturers of carbon black used in tire manufacturing and other applications. The company’s strong market presence and strategic expansions have contributed to its growth.
- Market Dynamics: With rising demand from automotive industries and increasing focus on sustainable practices, PCBL is well-positioned to leverage these trends for enhanced profitability.
Market Sentiment and Strategy
Bagadia advises traders to adopt a stock-specific approach in light of the current market conditions. He suggests that maintaining vigilance on chart patterns and market openings will be crucial for identifying further breakout opportunities. The recommendation to focus on stocks that exhibit strong technical indicators aligns with his broader outlook that favors a positive bias as long as key support levels are maintained.
“The Indian stock market bias is positive until the Nifty 50 index is sustaining above 24,500,” said Bagadia, highlighting the importance of monitoring market movements closely.
Conclusion
Investors looking to engage in intraday trading should consider these recommendations while also being mindful of their risk tolerance and market conditions. As always, thorough research and possibly consulting with a financial advisor are advisable before making any investment decisions.
Disclaimer
This article is for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with certified financial advisors before making any investment decisions.
