The Indian stock market faced a fourth consecutive session of losses on Thursday, weighed down by weak global sentiment following the US Federal Reserve’s policy announcement. The Nifty 50 index plunged by 236 points to close at 23,961, while the BSE Sensex tumbled 939 points, settling at 79,242. The Nifty Bank index also declined, shedding 528 points to end at 51,610. Sectoral indices mirrored the broader market trend, with most sectors closing in the red except Nifty Pharma, which managed to buck the trend.
Key sectors such as Nifty IT, Nifty Financial Services, and consumer durables bore the brunt of the sell-off. Additionally, the Nifty Mid-cap 100 and Small-cap 100 indices extended their losing streak for the third straight session, dropping by 0.28% and 0.51%, respectively. Despite the bearish sentiment, both indices showed a degree of recovery from early morning lows, ending closer to their intraday highs. Market breadth remained negative for the third day in a row, with declining stocks outpacing advancing ones at a ratio of 0.74 on the BSE.
Market Outlook Remains Weak Amid Key Resistance Levels
Sumeet Bagadia, Executive Director at Choice Broking, highlighted that the Indian stock market has entered a phase of weakness as the Nifty 50 decisively fell below the critical 24,000 level. Bagadia emphasized the importance of the 200-day exponential moving average (200-DEMA), situated at 23,800, as a crucial support level. Breaching this level, he warned, could escalate selling pressure, pushing the market further into bearish territory.
According to Bagadia, the market may remain sideways to negative unless the Nifty regains the 24,000 mark and breaks decisively above 24,300. He advised traders to adopt a stock-specific approach during this period of market uncertainty, focusing on breakout opportunities for short-term gains. Bagadia added, “Even if the 23,800 support level holds, the market bias is likely to remain subdued until significant resistance levels are overcome.”
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Five Breakout Stocks Recommended by Sumeet Bagadia
In the midst of the broader market downturn, Bagadia identified five breakout stocks as potential opportunities for intraday trading. His recommendations included shares from diverse sectors, all selected for their potential to yield short-term gains.
- Kamat Hotels: Recommended buy at ₹242.50 with a target price of ₹255 and a stop-loss at ₹233.
- Mallcom India: Entry suggested at ₹1610.25 with a target of ₹1700 and a stop-loss at ₹1555.
- Pokarna: Advised buying at ₹1266.85 with a target of ₹1350 and a stop-loss at ₹1225.
- Zota Health Care: Entry level of ₹805.25 with a target price of ₹860 and a stop-loss at ₹775.
- Sree Rayalaseema Hi-Strength Hypo: Recommended buy at ₹837.90 with a target of ₹900 and a stop-loss at ₹810.
Bagadia’s picks are aimed at investors seeking focused opportunities amid the overall market weakness, with clear stop-loss levels to manage risk. As the market grapples with global uncertainties and key resistance levels, such breakout strategies could offer a tactical edge for traders.
Also read: Global Market Trends Shape Indian Stock Market Outlook
