Indian Stock Market Update: Buy or Sell Breakout Stocks?
The Indian stock market faced challenges on May 8, as escalating tensions between India and Pakistan negatively impacted investor sentiment. Despite starting on a high note, the market took a downturn during the final trading hours after the Indian government reported military actions targeting air defense systems in Pakistan. The Nifty 50 index dropped 0.51%, settling at 24,273 points, while the Sensex fell by 411 points to close at 80,334.
Market Overview
- Nifty 50: Closed at 24,273 (-0.51%)
- Sensex: Closed at 80,334 (-0.51%)
Insights from Sumeet Bagadia
Sumeet Bagadia, Executive Director at Choice Broking, suggests a cautiously optimistic outlook for the Indian stock market, noting that the Nifty 50 index remains above the critical 200-day Exponential Moving Average (DEMA) support level of 24,050. According to Bagadia, “Investors should adopt a stock-specific strategy, focusing on opportunities for bottom fishing during dips as long as this support level holds firm.” He emphasizes identifying stocks that show strength in their technical charts, especially given the current geopolitical situation.
Recommended Stocks to Consider
For those looking to navigate the turbulent market, Bagadia has recommended five breakout stocks that investors might consider purchasing:
-
Kirloskar Brothers
- Entry Price: ₹1840
- Target: ₹1970
- Stop Loss: ₹1775
-
Bharti Hexacom
- Entry Price: ₹1730
- Target: ₹1852
- Stop Loss: ₹1669
-
Dharmaj Crop Guard
- Entry Price: ₹237.50
- Target: ₹254
- Stop Loss: ₹229
-
Orient Bell
- Entry Price: ₹273.50
- Target: ₹293
- Stop Loss: ₹263
- Intellect Design Arena
- Entry Price: ₹842.80
- Target: ₹902
- Stop Loss: ₹813
Conclusion
As tensions rise in the Indian subcontinent, it’s crucial for investors to stay informed and strategically approach their investments. The suggested stocks by Sumeet Bagadia may offer potential opportunities for growth, but always consider market conditions and conduct thorough research before making investment decisions.
