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Breakout stocks to buy or sell: Market trends & key levels

Stocks
2 min Read Sep 12, 2024
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Investing in stocks requires keen insight into market movements, and understanding breakout stocks can provide profitable opportunities. The Indian stock market recently experienced fluctuations, with the Nifty 50, BSE Sensex, and Bank Nifty indices ending lower despite a strong recovery during mid-session. For those looking to invest in stocks, paying close attention to market trends and identifying key levels is crucial.

Market performance overview

On Wednesday, the Indian stock market displayed volatility, leading to a downward close. The Nifty 50 index finished 122 points lower at 24,918, while the BSE Sensex corrected 398 points, closing at 81,523. Similarly, the Bank Nifty index ended 262 points lower at 51,010. Broad market indices were also impacted, with the Small-cap and Mid-cap indices falling by 0.57% and 0.52%, respectively.

Trade setup for Thursday

Rajesh Bhosale, an equity technical analyst at Angel One, emphasised that the Nifty 50 index has dipped below its 20-day Exponential Moving Average (EMA), indicating a potential retest of Monday’s low of around 24,750. If this support level is broken, prices could drop further toward the 24,500 mark. However, resistance remains at 25,100 to 25,150. 

Similarly, Bank Nifty saw significant pressure, closing at 51,010. According to Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C Mehta, the 100-day Exponential Moving Average (DEMA) support level sits at 50,250, acting as a key point to watch. On the upside, a move beyond 51,420 could push the index toward 51,800-52,000 levels.

Global market trends

Global markets saw a tech-driven rally, particularly in the U.S., where the Nasdaq 100 gained 2.2% and the S&P 500 closed 1.1% higher. Asian markets followed suit, with Japan and South Korea's indices also advancing. Investors looking to invest in stocks should note these positive global signals, particularly in the tech sector, which continues to drive market sentiment.

Top breakout stocks to buy today

For those ready to invest in stocks today, experts have identified several breakout stocks with strong potential:

  1. Jindal Steel: Buy at ₹966.90, with a target of ₹1030, and stop loss at ₹933. Jindal Steel shows bullish signs on the daily chart, indicating a potential upward trend.

  2. Britannia Industries: Buy at ₹6008.65, with a target of ₹6310, and stop loss at ₹5860. The stock recently broke out from a rounding bottom pattern, reaching an all-time high.

  3. Zomato: Buy at ₹270, with a target of ₹285, and stop loss at ₹252. A bullish reversal pattern suggests an upward move in the short term.

  4. Deepak Nitrite: Buy at ₹2920, with a target of ₹3030, and stop loss at ₹2850. The stock has formed a bullish reversal pattern, making it a strong buy.

  5. JK Lakshmi Cement: Buy at ₹788, with a target of ₹820, and stop loss at ₹770. A breakout and strong RSI indicate upward momentum in the coming weeks.

Key takeaways

  • Nifty 50 and Bank Nifty are facing significant resistance and support levels, which investors should monitor closely.

  • Global markets are recovering, particularly in the tech sector, signalling potential growth for tech-related stocks.

  • Breakout stocks like Jindal Steel, Britannia, and Zomato show strong potential for short-term gains.