Indian stock markets witnessed a sharp sell-off on Tuesday, December 16, dragged down by a record-low rupee and weak global signals. Investor sentiment took a significant hit, leading to a broad-based decline across major indices.
Market Carnage: Key Indices and Wealth Eroded
The benchmark Sensex plummeted 534 points, or 0.63%, to settle at 84,679.86. Similarly, the Nifty 50 index dropped 167 points, or 0.64%, closing at 25,860.10. The pain was not limited to large caps; broader markets also faced intense pressure. The BSE Midcap index fell 0.78%, and the Smallcap index declined by 0.69%.
The day's heavy selling wiped out a staggering amount of investor wealth. The total market capitalisation of companies listed on the BSE shrank by over ₹3 lakh crore in just one session, falling from approximately ₹471 lakh crore to about ₹467.6 lakh crore.
Expert View: Market Sentiment Turns Cautious
Sumeet Bagadia, Executive Director at Choice Broking, noted that market sentiment has turned cautious following the Nifty's fall below the 26,000 mark. He emphasized that for positivity to return, the index must hold above the 25,750 level on Wednesday. A break below this crucial 50-Day Exponential Moving Average (DEMA) support could turn the bias negative.
"On the upper side, the key index would need to break above the 26,000 levels to turn the bias positive. So, one should maintain a stock-specific approach and look at those stocks that are looking strong on the technical chart. Looking at breakout stocks can be a good option," Bagadia advised.
Five Breakout Stock Recommendations for Today
Based on a stock-specific, technical analysis approach, Sumeet Bagadia has identified five breakout stocks for traders to consider on Wednesday, December 17.
1. Silver Touch Technologies: Bagadia recommends buying this stock at around ₹878. The suggested target price is ₹945, with a strict stop loss set at ₹850.
2. Pricol: The expert advises a buy call at ₹632. The expected target for this trade is ₹680, and investors should place a stop loss at ₹610.
3. Rico Auto Industries: This stock can be bought at ₹122.7, according to the recommendation. The target price is set at ₹132, with a stop loss of ₹118.
4. Avanti Feeds: A buy recommendation is given at ₹827. The anticipated upside target is ₹888, and the stop loss level is ₹800.
5. Suprajit Engineering: The final pick is a buy at ₹460. The target for this recommendation is ₹495, and the stop loss is placed at ₹444.
Disclaimer: This information is for educational purposes only. The views and recommendations are those of the individual analyst. Investors are strongly advised to consult with certified financial experts before making any investment decisions.
