The Indian stock market closed higher on Monday, buoyed by a significant policy move from the Reserve Bank of India (RBI). Investor sentiment received a dual boost from a 25-basis-point interest rate reduction and a proposed liquidity infusion of ₹1.45 lakh crore, propelling the benchmark indices to a positive finish.
Market Rallies on Central Bank's Supportive Measures
Domestic equities extended their gains into a second consecutive session. The Sensex climbed 447 points, or 0.52%, to settle at 85,712.37. Similarly, the Nifty 50 advanced by 153 points, or 0.59%, closing at 26,186.45. The broader market showed a mixed trend, with the BSE Midcap index edging up 0.21%, while the Smallcap index witnessed a decline of 0.67%.
The rally was primarily fueled by the RBI's decision to cut the repo rate, aimed at stimulating economic growth. Furthermore, the central bank's announcement of a substantial liquidity injection through bond purchases and dollar-rupee swaps provided additional support, enhancing liquidity conditions in the financial system.
Expert Identifies Key Levels and Breakout Opportunities
Sumeet Bagadia, Executive Director at Choice Broking, noted that the market sentiment remains positive with the Nifty approaching the 26,200 mark. He highlighted a crucial resistance level for the index. "The key benchmark index is facing a hurdle at 26,300," Bagadia stated. "A decisive close above this level could open the doors for the Nifty to move towards 26,500 and 26,800."
Given this technical setup, Bagadia advises investors to adopt a stock-specific approach. He suggests focusing on shares that are demonstrating strength on technical charts and identifies breakout stocks as a potentially rewarding strategy in the current environment.
Five Breakout Stock Recommendations for Today
Based on his technical analysis, Sumeet Bagadia has recommended five stocks that appear poised for a breakout. Here are the detailed recommendations for investors to consider:
- Shriram Pistons & Rings: Consider buying at ₹2837. The recommended target price is ₹3040, with a stop loss set at ₹2727.
- Knowledge Marine & Engineering Works: Consider buying at ₹3032. The recommended target price is ₹3280, with a stop loss set at ₹2940.
- Mahindra and Mahindra Financial Services: Consider buying at ₹367. The recommended target price is ₹393, with a stop loss set at ₹354.
- Cholamandalam Investment and Finance Company: Consider buying at ₹1730. The recommended target price is ₹1850, with a stop loss set at ₹1670.
- Stylam Industries: Consider buying at ₹2147. The recommended target price is ₹2300, with a stop loss set at ₹2080.
Disclaimer: This information is for educational purposes only. The views and recommendations are those of the individual analyst and not of the publishing platform. Investors are strongly advised to consult with certified financial experts before making any investment decisions.
