On April 7, the Indian stock market faced a significant downturn, as the Sensex dropped by 2,227 points, equivalent to a 2.95% decrease, closing at 73,137.90. Simultaneously, the Nifty 50 index fell by 742.85 points, or 3.24%, reaching 22,161.60. This marked the largest single-day decline in nearly ten months, triggered by widespread sell-offs amidst escalating fears regarding a potential global trade war, largely ignited by tariff actions from U.S. President Donald Trump.
Market Sentiment Shifts to Bearish
The sharp decline has significantly altered the market sentiment, pushing it into bearish territory. Sumeet Bagadia, the Executive Director at Choice Broking, highlighted that the recent sell-off has led to a bleak outlook for the Indian markets. He noted, “With the Nifty 50 hitting a ten-month low, we may see it testing levels around 21,400 or even 21,000 if the selling pressure continues due to Trump’s tariffs. However, a decisive break above 22,800 could improve the market’s mood.”
Key Takeaways from Bagadia’s Analysis
- The Nifty 50 index may face further declines if negative sentiment persists.
- A break above 22,800 could signal a potential recovery.
- Traders are advised to adopt a stock-specific strategy, focusing on technically strong stocks.
Recommended Breakout Stocks
In light of the current market situation, Bagadia has identified five breakout stocks that traders might consider for buying:
-
360 One Wam:
- Buy at ₹886.55
- Target: ₹949
- Stop Loss: ₹855
-
Vedant Fashions:
- Buy at ₹785.80
- Target: ₹841
- Stop Loss: ₹758
-
NACL Industries:
- Buy at ₹141.63
- Target: ₹152
- Stop Loss: ₹136
-
GRM Overseas:
- Buy at ₹303.60
- Target: ₹325
- Stop Loss: ₹292
- Orient Cement:
- Buy at ₹350.75
- Target: ₹375
- Stop Loss: ₹337
Conclusion
With the Indian stock market currently facing volatility, traders are encouraged to keep a close watch on these recommended stocks. The situation remains fluid, and being strategic in stock selection could prove beneficial in navigating these turbulent times. For more stock insights and updates, consider following financial news outlets and market analysts.
