Markets
Breakout stocks to buy or sell: Sumeet Bagadia recommends five shares to buy
Summary
- Breakout stocks to buy or sell: Sumeet Bagadia recommends five shares to buy today —Prism Johnson, Pasupati Acrylon Ltd, Dhunseri Investments Ltd, Epigral Ltd, and Sumitomo Chemical India Ltd.
Breakout stocks to buy or sell: Domestic equity benchmarks Sensex and Nifty 50 settled higher on Tuesday, driven by pharma and IT stocks ahead of crucial US inflation data that could pave the way for Fed interest rate cuts. The frontline indices marked their second straight day of gains following a rebound in the US markets and fresh foreign fund inflows.
The NSE Nifty surged 104.70 points or 0.42 per cent to settle at 25,041.10. The 30-share BSE Sensex climbed 361.75 points or 0.44 per cent to settle at 81,921.29, driven by gains in telecom and select banking shares on Tuesday.
A 1.7 per cent rise in IT companies ahead of Wednesday's US inflation report helped lift domestic equities. Indian IT firms earn a significant chunk of revenue from the US. Pharma stocks gained 1.1 per cent after India's goods and services tax (GST) council recommended cutting tax on select cancer drugs.
In contrast, financials dropped 0.3 per cent, weighed down by insurers HDFC Life and SBI Life after posting modest growth in premiums for August. The more domestically focussed small- and mid-caps rose about 1.2 per cent each.
D-Street analysts said liquidity surplus in the markets supports the strategy of buying dips. Still, a clear directionality for domestic equities will only emerge after US inflation data and the much-awaited Powell-led Federal Reserve interest rate decision scheduled for next week.
In commodity markets, global crude oil prices crashed to a 33-month low (near a three-year low) on Tuesday, September 10. The benchmark Brent crude futures fell below $70 a barrel for the first time since December 2021. This came shortly after the Organisation of Petroleum Exporting Countries and its allies (OPEC+) slashed its global oil demand forecast for this year and 2025.
US stocks drifted to a mixed finish on Tuesday following several weeks of sharp swings. The S&P 500 and the Nasdaq gained ground on Wall Street while Brent crude prices hit a 3-1/2-year low. The Dow Jones Industrial Average fell 92 points or 0.2 per cent, and the Nasdaq composite rose 0.8 per cent. The S&P 500 rose 0.4 per cent to pull within three per cent of its record set in July.
European stocks lost ground, weighed by bank and energy stocks as investors took a cautionary stance ahead of the US inflation data and an anticipated rate cut from the European Central Bank (ECB) later in the week. India's retail inflation data for August will be released on Thursday, September 12. The pan-European STOXX 600 index lost 0.54 per cent in the last session, and MSCI's gauge of stocks across the globe gained 0.17 per cent.
Sumeet Bagadia, Executive Director at Choice Broking has recommended five stocks to buy today. These five stocks have shown technical breakout on the price charts and the analyst believes they are poised for further upside. Here are the five breakout stocks to buy today:
Sumeet Bagadia's stock recommendations today
1. Prism Johnson: Buy at ₹208.1 for a target price of ₹218 with a stop loss ₹201
2.Pasupati Acrylon Ltd: Buy at ₹64.97 for a target price of ₹68.6 with a stop loss ₹62.45
3.Dhunseri Investments Ltd: Buy at ₹2,185.3 for a target price of ₹2,333 with a stop loss ₹2,100
4.Epigral Ltd: Buy at ₹2,142.45 for a target price of ₹2,260 with a stop loss ₹2,070
5.Sumitomo Chemical India Ltd: Buy at ₹608.85 for a target price of ₹644 with a stop loss ₹585.
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.
