As 2024 comes to a close, the Indian stock market is experiencing a cautious sentiment, particularly after a significant sell-off on December 30. Sumeet Bagadia, Executive Director at Choice Broking, has identified five breakout stocks for investors to consider buying today, December 31, 2024. These recommendations come amid a challenging market environment where the Nifty 50 index has struggled to breach key resistance levels.
Current Market Overview
The Indian stock market faced intense selling pressure on December 30, with the Nifty 50 index closing down by 152 points at 23,661. The BSE Sensex dropped 499 points, finishing at 78,199, while the Nifty Bank index corrected by 411 points, ending at 50,899. This decline has shifted the market bias to a more cautious stance as traders await clearer signals for future movements.Bagadia noted that the Nifty 50 index has immediate support at 23,500 and crucial support at 23,250. He emphasized that the market is currently trading within a broader range of 23,250 to 23,850, and a decisive break above or below this range could dictate the next trend.
Recommended Breakout Stocks
Sumeet Bagadia has recommended the following five stocks for today:
1. KNR Constructions
- Buy Price: ₹340.40
- Target Price: ₹365
- Stop Loss: ₹330
KNR Constructions is well-positioned in the infrastructure sector and is expected to benefit from ongoing government projects.
2. Universal Cables
- Buy Price: ₹838
- Target Price: ₹900
- Stop Loss: ₹810
Universal Cables specializes in manufacturing electrical cables and is poised for growth with increasing infrastructure demands.
3. Ashoka Buildcon
- Buy Price: ₹313.20
- Target Price: ₹333
- Stop Loss: ₹303
Ashoka Buildcon is involved in road and highway construction and is likely to see benefits from government spending on infrastructure.
4. Bajaj Healthcare
- Buy Price: ₹587.80
- Target Price: ₹630
- Stop Loss: ₹565
Bajaj Healthcare operates in the pharmaceutical sector and stands to gain from rising healthcare demands.
5. Piramal Pharma
- Buy Price: ₹265.30
- Target Price: ₹285
- Stop Loss: ₹255
Piramal Pharma is a key player in the pharmaceutical industry, focusing on both manufacturing and distribution of medicines.
Expert Insights
Market analysts suggest that while the overall sentiment remains cautious due to recent market volatility, these specific stocks show potential for intraday trading based on their technical setups and fundamentals. Bagadia advises investors to maintain a stock-specific approach rather than taking large positions until clearer trends emerge in the broader market.
Conclusion
With the Nifty index facing critical support levels and breakout stocks identified by Sumeet Bagadia, investors have opportunities to capitalize on potential gains despite current market uncertainties. As always, it’s essential for traders to conduct thorough research and consider their risk tolerance before making investment decisions.
Disclaimer
The information provided in this article is for informational purposes only and does not constitute financial advice. Investors should conduct their own research or consult with a financial advisor before making investment decisions as market conditions can change rapidly.
