Breakout stocks to buy or sell: Paytm to Precision Wires — Sumeet Bagadia recommends five shares to buy today | Stock Market News

Breakout stocks to buy or sell: Even though foreign portfolio investors (FPIs) continued selling Indian equities, strong support from domestic institutional investors (DIIs) underpinned the Indian stock market in the previous session on Tuesday, October 8, as the benchmarks, the Sensex and the Nifty 50 saw healthy gains of almost a per cent. The Sensex closed 0.72 per cent up at 81,634.81, while the Nifty 50 clocked a gain of 0.88 per cent to end at 25,013.15. The BSE Midcap and Smallcap indices witnessed strong gains of 1.86 per cent and 2.44 per cent, respectively.

The recent strong selloff in the Indian stock market has primarily been led by the outflow of foreign investments after China announced several measures to support its economy and financial market. Due to the significantly cheaper valuation of Chinese markets, compared to the Indian market, foreign investors are rushing to buy Chinese stocks while selling Indian equities that are at premium valuation. NSE data showed that FPIs took away ₹5,729.60 crore from the Indian markets on Tuesday, while DIIs invested ₹7,000.68 crore. According to NSDL data, FPIs have taken out ₹47,003 crore from the Indian financial markets in October so far.

Sumeet Bagadia’s stock recommendations today

Sumeet Bagadia, Executive Director at Choice Broking, believes that even though the market mood appears to have improved, caution is likely to prevail. In the current environment, one should continue taking a stock-specific approach.

“The Indian market mood has improved as the Nifty index has ended above 25,000. However, the overall trend on Dalal Street would remain cautious until the frontline index breaches the hurdle placed at 25,400 on a decisive basis. The Nifty Bank index has also improved its bias after closing above 51,000. However, the index would become bullish after decisively breaching the 51,800 barrier. So, one is advised to maintain a stock-specific approach and look at breakout stocks for intraday trading,” said Bagadia.

Regarding breakout stocks to buy today, Sumeet Bagadia recommended buying these five shares: Paytm, Precision Wires India, India Glycols, Allied Digital Services and Nagarjuna Fertilizers and Chemicals.

Shares to buy today

1. One 97 Communications (Paytm) | Buy at ₹753 | Target price: ₹799 | Stop loss: ₹722

2. Precision Wires India | Buy at ₹208.20 | Target price: ₹222 | Stop loss: ₹201

3. India Glycols | Buy at ₹1,483.10 | Target price: ₹1,585 | Stop loss: ₹1,435

4. Allied Digital Services | Buy at ₹283.15 | Target price: ₹303 | Stop loss: ₹ 273

5. Nagarjuna Fertilizers and Chemicals | Buy at ₹11.84 | Target price: ₹12.60 | Stop loss: ₹11.40

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.