Breakout Stocks to Buy or Sell: Recommends Five Stocks to Buy Today

Domestic equity benchmarks Nifty 50 and Sensex extended losses for the third straight session after investors offloaded utility, capital goods and metal stocks amid foreign fund outflows. The benchmarks have lost over two per cent this week, with foreign outflows prompting the Nifty 50 to close below its 50-day moving average for the second straight session.

The 30-share BSE Sensex benchmark tumbled 502.25 points or 0.62 per cent to settle at 80,182.20, taking its downtrend to the third day. During the day, it tanked 634.38 points or 0.78 per cent to 80,050.07. The NSE Nifty 50 index declined 137.15 points or 0.56 per cent to 24,198.85

Stock Market Today: Shares of airline SpiceJet shot up nearly 9 per cent in intra-day trade on Thursday, December 19 after the company informed bourses that it has reached a settlement with Genesis to resolve over a $16 million dispute.

As part of the settlement agreement, SpiceJet will pay Genesis $6 million and Genesis will acquire $4 million in SpiceJet equity at a price of ₹100 per share, a premium of nearly 78 per cent over the last closing price of ₹56.28

Following the development, the stock rose 8.91 per cent to ₹61.30 apiece on the BSE. At 1.05 pm, the stock was at ₹60.67, up 7.80 per cent. From its 52-week high of ₹79.90, the stock was trading 23 per cent lower but it was up 33 per cent from its 52-week low level of ₹46.

Stocks to Buy Today

• 1: E.I.D. Parry India Ltd. (EIDPARRY): Buy at ₹974; Target at ₹1,030; Stop loss at ₹935

EIDPARRY showcases a strong bullish momentum, evident from a substantial upward movement and a significant closing around ₹974. The stock has been experiencing robust buying interest, leading to consecutive gains that could potentially lead to further upward movement after the recent surge, offering an optimistic outlook for investors.

Key technical indicators, particularly the Relative Strength Index (RSI), emphasize the stock's positive momentum. The RSI not only signals positive trends but also aligns with the stock trading above crucial moving averages, including the 20-day, 50-day, and 200-day Exponential Moving Averages (EMA). This convergence underscores the sustained strength in EIDPARRY price action.

The surge in volume associated with this upward price action also indicates strong interest and a potential continuation of the rally if the momentum sustains a bullish outlook for EIDPARRY Industries. Traders and investors may find this analysis indicative of potential continued upward momentum in the stock.

• 2: Deep Industries Ltd. (DEEPINDS): Buy at ₹611.45; Target at ₹650; Stop loss at ₹588.

DEEPINDS is exhibiting strong bullish momentum, currently trading at an all-time high of 619.85 levels. The recent breakout above the crucial resistance at 590 levels is a significant technical development, supported by robust trading volumes, reinforcing the strength in the stock. The breakthrough suggests a potential continuation of the upward trend, offering an optimistic outlook for investors.

Additionally, DEEPINDS is trading above key moving averages, including the short-term (20 Day), medium-term (50 Day), and long-term (200 Day) EMAs, further affirming its bullish stance. The momentum indicator, Relative Strength Index (RSI), is at 70.11 levels.

For traders, keeping an eye on the strong support near 588 levels is advisable, as a breach of this level could signal a shift in sentiment. Overall, DEEPINDS current technical setup suggests a favourable environment for further upside potential, provided traders and investors remain vigilant to potential reversals and closely monitor key support and resistance levels.

• 3: Godrej Industries Ltd. (GODREJIND): Buy at ₹1,155; Target at ₹1,195; Stop loss at ₹1,125.

The stock having a substantial support at ₹1,125, marking a crucial juncture in its recent trading. Presently, at ₹1,155, the stock has demonstrated a definitive reversal in price action, suggesting a potential continuation of its upward momentum. Traders keen on seizing this opportunity could consider buying and holding the stock, setting a prudent stop loss at ₹1,125. The anticipated target for this trade is ₹1,195, representing the next significant resistance level. This strategy positions traders favorably to capitalize on the stock's anticipated rally in the weeks ahead.

• 4: Varun Beverages Ltd. (VBL): Buy at ₹632; Target at ₹652; Stop loss at ₹623.

In the recent short-term trend analysis of the stock, a notable bullish reversal pattern has emerged. This technical pattern suggests the possibility of a temporary retracement in the stock's price, potentially reaching around ₹652. At present, the stock is maintaining a crucial support level at ₹623.

Given the current market price of ₹632, a buying opportunity is emerging. This suggests that investors might consider purchasing the stock at its current price, anticipating a rise towards the identified target of ₹652.

• 5: Amber Enterprises India Ltd. (AMBER): Buy at ₹6,000; Target at ₹6,250; Stop loss at ₹5,850.

On the daily chart of this stock, a breakout at the Rs.6000 price level has been observed, signaling a potential upward trend. Complementing this breakout, the Relative Strength Index (RSI) is still turning up, indicating increasing buying momentum. Given these technical indicators, traders can consider buying on dips, entering the stock at a lower price point. To manage risk, a stop loss at ₹5850 is recommended. The target price for this strategy is Rs.6250 in the upcoming weeks, suggesting a potential gain as the stock continues its upwardtrajectory.

Key Sectors to Focus On

India, as the second most populous country in the world, continues to experience strong economic growth and is expected to remain a highlight of the global economy in 2025. With the expanding middle class and rising consumption demand, India’s stock market offers numerous investment opportunities in sectors such as consumer goods, IT, and financial services. Government initiatives in digital transformation, infrastructure development, and the "Make in India" campaign present significant potential for tech and manufacturing stocks. Although there are risks of a market bubble, the long-term growth prospects of India’s stock market remain substantial, attracting both domestic and international investors.:

• Consumer Goods: Companies like Hindustan Unilever (HUL) and Nestle India.
• Information Technology:: Companies like Tata Consultancy Services (TCS), Infosys, and Wipro.
• Financial Services: Companies like HDFC Bank, ICICI Bank, and Bajaj Finance.
• Infrastructure and Construction: Companies like Larsen & Toubro (L&T) and Ultratech Cement.
• Renewable Energy and Green Tech: Companies like Adani Green Energy and Renew Power.
• Manufacturing and "Make in India":Companies like Mahindra & Mahindra and Bajaj Auto.

Investment Tips for Experienced Investors

Maximize your returns in India’s stock market with these tips:

• Research Trends: Stay updated on market trends and identify the most promising sectors.
• Long-Term View: Many sectors in India require a long-term investment strategy for maximum returns.
• Risk Management: Diversify your portfolio to mitigate risks associated with emerging markets.
• With expert analysis and market insights from A.K. Capital Services Ltd.: A.K. Capital Services Ltd. is a leading financial services company with deep market analysis capabilities. Our Chief Analyst Vikas Jain will provide you with professional investment advice to help you seize the unique opportunities in the India stock market.

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