The Indian stock market experienced a severe downturn on August 5, 2024, following significant global market sell-offs. The Nifty 50 index plunged 667 points, closing at 24,049, while the BSE Sensex fell 2,222 points to finish at 78,759. The Bank Nifty index also suffered, dropping 1,294 points to 50,056. Small-cap and mid-cap indices saw declines of 4.21% and 3.60%, respectively.
Sumeet Bagadia, Executive Director at Choice Broking, notes that the market has been impacted by heavy sell-offs in Japan and South Korea. Bagadia points out that the Nifty 50 index has critical support levels between 23,750 and 23,700. Given the market’s current weakness, he advises a stock-specific approach and suggests focusing on breakout stocks for intraday trading.
Stock Recommendations for August 6
Bagadia has identified five breakout stocks that are positioned for potential gains despite the broader market decline. Here are his recommendations:
GHCL Textiles
- Buy at ₹111.11
- Target: ₹116
- Stop Loss: ₹107
DIC India
- Buy at ₹630.65
- Target: ₹661
- Stop Loss: ₹607
Pokarna
- Buy at ₹816.65
- Target: ₹855
- Stop Loss: ₹785
Cera Sanitaryware
- Buy at ₹9,436.70
- Target: ₹9,888
- Stop Loss: ₹9,100
Aurum Proptech
- Buy at ₹196
- Target: ₹205
- Stop Loss: ₹188
Investment Strategy
Given the volatile market conditions, Bagadia suggests focusing on stocks that have shown breakout patterns on their technical charts. The recommended stocks are selected based on their potential to perform well despite the broader market downturn. Investors should monitor these stocks closely and consider using the provided stop loss levels to manage risk effectively.
Conclusion
The recent market sell-off presents both challenges and opportunities. While the overall sentiment remains weak, specific stocks may offer potential gains for those willing to adopt a stock-specific and technical approach. Keep a close eye on the recommended stocks and market conditions to make informed trading decisions.
Related topics: