Indian equity benchmarks concluded Thursday's trading session on a flat note, albeit with a negative undercurrent, in the absence of fresh market triggers. The Sensex dipped 78 points, or 0.09%, to close at 84,481.81. The broader Nifty 50 index edged lower by a mere 3 points, or 0.01%, settling at 25,815.55.
Market Sentiment Turns Cautious
While the benchmark indices showed minimal movement, the broader market painted a mixed picture. The BSE Midcap index managed marginal gains of 0.05%, but the Smallcap index declined by 0.28%. According to Sumeet Bagadia, Executive Director at Choice Broking, market sentiment has turned cautious. He observed that the Nifty 50 pared its gains after bouncing back from a test of its 50-day Exponential Moving Average (DEMA) support, which is placed at the 25,750 level.
"The key benchmark index has closed around 25,800 and is facing a hurdle at 26,000 on the upper side," Bagadia noted. He emphasized that a positive trend can only be expected once the index closes decisively above the 26,000 mark. Conversely, if the Nifty breaks below the 25,750 support, it could potentially slide towards the 25,450 to 25,350 zone.
Expert's Stock-Specific Breakout Picks
Given the current market consolidation, Bagadia advises investors to adopt a stock-specific approach and focus on scrips that are demonstrating strength on technical charts. Identifying breakout stocks can be a viable strategy in such an environment. Based on this analysis, he has recommended five stocks for consideration on Friday.
Here are the five breakout stock picks from Sumeet Bagadia:
1. Pricol: The suggested strategy is to buy at ₹670, with a target price of ₹720 and a stop loss set at ₹645.
2. Sansera Engineering: Investors can look to buy at ₹1704. The target for this stock is ₹1830, with a stop loss at ₹1640.
3. Blue Star: The recommended entry point is ₹1854. The target is set at ₹2000, and the stop loss should be placed at ₹1788.
4. Jindal Stainless: This stock can be bought at ₹798, aiming for a target of ₹855. The stop loss is advised at ₹770.
5. Automotive Axles: The final pick is to buy at ₹1843. The target price is ₹1980, and the stop loss is ₹1777.
Investment Disclaimer and Final Takeaway
The market's flat close underscores the prevailing indecision among participants. With the Nifty trapped between immediate support and resistance, experts like Bagadia suggest that identifying individual stocks breaking out of their patterns could offer better opportunities than betting on the broader index direction. However, it is crucial to remember that these views and recommendations are from individual analysts. Investors are strongly advised to consult with certified financial experts and conduct their own research before making any investment decisions.
