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Sumeet Bagadia's breakout stock recommendations: The key benchmark indices of the Indian stock market extended their slide on Tuesday, with the Nifty 50 and Sensex falling further to fresh six-month lows as the market struggled to stabilise following the sharp correction in the previous session. Selling remained broad-based, with the vast majority of Nifty constituents ending lower, underscoring limited appetite for dip buying and a fragile tone across domestic equities.
Crude oil was not the primary catalyst for today’s decline. WTI held above $92 a barrel without a significant move higher, in contrast to the sharp surge in the previous session that had weighed heavily on risk sentiment. Nevertheless, crude prices remain elevated following the recent rally, keeping concerns over India’s import bill and inflation outlook firmly in focus.
Weak Asian market cues and continued foreign institutional outflows added to the pressure as global risk appetite remained subdued following the previous session’s geopolitical shock. The rupee also remained volatile and sensitive to global risk conditions, adding to the cautious tone across domestic markets.
Sumeet Bagadia, Executive Director at Choice Broking, believes the short-term bias in the Indian stock market has shifted from bearish to sideways. This could happen due to a sharp recovery after the weak opening in early-morning trading.
Speaking on the outlook of the Nifty 50 index, Bagadia said, “The short-term view has moved slightly from bearish to sideways-to-bullish, as the index closed above the 22,600 support level. This shows that selling is slowing down, and buyers are active near this level. Based on the chart pattern and past behaviour after seven straight falls, a big recovery is possible in the coming weeks. Immediate support is at 22,600–22,500, while resistance is at 22,900 and 23,100.”
On the outlook of the Bank Nifty index, Sumeet Bagadia said, “Over the last three weeks, the index has fallen nearly 3,500 points from its recent highs. The rebound from the weekly candle's multiple support zones, along with major banking stocks recovering from their lows, indicates that buyers are active at this level. Some recovery looks likely in the coming weeks. Immediate support is at 53,800–53,600, while major resistance is at 54,500–54,700.”
Regarding stocks to buy, Sumeet Bagadia recommended these five breakout stocks: Gland Pharma, Astra Micro, Meesho, Westlife, Ujjivan SFB.
The stock has emerged from a consolidation phase with a decisive breakout above its Symmetrical Triangle pattern on the daily chart, signalling a potential shift towards stronger upward price action. The breakout is accompanied by rising volume, indicating increased participation and adding credibility to the move. Momentum indicators also support the positive setup, with the RSI sustaining above 60 and reflecting healthy bullish strength.
The stock has displayed a strong improvement in its daily price action after breaking above the highs of the previous four sessions, indicating a fresh expansion in the near-term trading structure. The move is further highlighted by the formation of a Bullish Engulfing candlestick, which suggests renewed buying interest and strengthens the breakout signal.
Meesho shares have shown a notable recovery on the daily chart after taking support at its rising trend line and forming a Bullish Engulfing candlestick, indicating renewed buying interest. The stock has also reclaimed the middle Bollinger Band and is sustaining above it, suggesting an improvement in the short-term price structure.
Westlife's share price has developed a favourable technical setup on the daily chart after breaking above its downward trend line and subsequently completing a successful retest. The retest phase also found support around the 21-Day EMA, adding strength to the breakout structure and indicating that the previous resistance zone is gaining support characteristics.
Ujjivan SFB, at a CMP of ₹65.20, has shown a positive technical development after breaking out of its recent sideways consolidation range. The breakout is supported by the formation of a Bullish Engulfing candlestick pattern, indicating improving buying interest and a potential shift in short-term momentum.
Disclaimer: This story is for educational and informational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified financial experts before making any investment decisions.
Asit Manohar has nearly two decades of experience in the mainstream media. In this period, he has served esteemed media organisations like NDTV Profit, The Economic Times, and Zee Business. He has been working at LiveMint Digital since April 2021. During these two decades of journey in mainstream media, Asit has mainly covered external affairs, markets and personal finance. However, his earliest beats include railways, SME, MSME, and politics (Congress beat). Some of his features on political, economic, and foreign policy are documented in the parliamentary records. <br><br> While pursuing his MA (Mass Communication, Session 2004-06), Asit began his media career as a stringer at All India Radio in Varanasi. At AIR Varanasi, Asit worked with the Gyanvani, Yuvvani and Vividh Bharti teams. After working for nearly one year at AIR Varanasi, he shifted to print journalism and started working as a stringer for the HT Media Ltd, Varanasi. At HT Media Ltd in Varanasi, he covered the BHU beat. <br><br> Asit has also worked with some brokerage houses. He has worked with Religare Broking and India Infoline, where he assisted the research team in developing and executing trade strategies for intraday cash, F&O, and commodities. <br><br> Asit is a Gold Medalist in MA (Mass Communication) from BHU, Varanasi. He did his BSc. (Hons) in Mathematics from Magadh University, Bodh Gaya. Asit was a National Talent Scholarship holder during his senior secondary studies (1988-91).
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