The Indian stock market wrapped up Monday’s session on a cautious note, with benchmark indices slipping further amid thin year-end volumes and a lack of fresh triggers. Despite the muted mood, select stocks are flashing technical breakout signals, offering opportunities for short-term traders willing to play tight risk management.
According to Sumeet Bagadia, Executive Director at Choice Broking, the broader market remains in a consolidation phase, but a few stocks are showing enough strength to attempt an upside move.
Market Snapshot: Sensex, Nifty End Lower
On Monday, December 29, the Sensex fell for the fourth straight session, dropping 345.91 points (0.41%) to close at 84,695.54. The Nifty 50 also extended losses, slipping 100.20 points (0.38%) to settle at 25,942.10.
Low participation and profit-booking near resistance zones kept the indices range-bound, pointing to cautious sentiment heading into the last trading sessions of the year.
Nifty 50 Outlook: Consolidation Continues
Bagadia noted that the daily chart reflects a bearish bias, with the index failing to hold intraday highs. On shorter time frames, Nifty continues to form lower highs, suggesting fading momentum.
- Immediate resistance: 26,050–26,100
- Key support: 25,800–25,850
“Buying interest is visible at lower levels, but it lacks the strength to trigger a decisive rebound,” he said, adding that the index is likely to remain in consolidation for now.
Bank Nifty: Range-Bound With Mild Upside Bias
The Bank Nifty ended marginally lower but showed signs of recovery in the second half, helped by selective buying in private and PSU banks.
- Resistance zone: 59,150–59,250
- Support zone: 58,600–58,700
While selling pressure appears to be easing, the recovery still lacks the momentum needed for a clear breakout, keeping the index range-bound in the near term.
Breakout Stocks to Watch Today
Breakout stocks are those that move past key support or resistance levels, often hinting at a stronger price move ahead. Amid current market conditions, Bagadia has identified five such stocks to buy today:
1) NLC India
- Buy: ₹256.4
- Target: ₹275
- Stop loss: ₹247
NLC India has reversed from lower levels and is forming higher highs and higher lows. A breakout above its falling trendline and trading above all key EMAs point to strong bullish momentum.
2) India Cements
- Buy: ₹448.05
- Target: ₹490
- Stop loss: ₹424
The stock has broken out of a sideways range and continues to trade above major EMAs. An RSI near 68 suggests the trend still has room to run.
3) City Union Bank
- Buy: ₹298.95
- Target: ₹327
- Stop loss: ₹285
City Union Bank has formed a bullish engulfing candle and is trading close to its all-time high. Strong demand near short-term EMAs indicates sustained buying interest.
4) Honasa Consumer
- Buy: ₹277
- Target: ₹299
- Stop loss: ₹265
After forming a base, Honasa Consumer has bounced back with improving momentum. RSI levels suggest a healthy recovery from oversold territory.
5) NTPC Green Energy
- Buy: ₹95.04
- Target: ₹101.5
- Stop loss: ₹91.96
NTPC Green Energy has posted a bullish engulfing pattern backed by strong volumes. With resistance now breached, the near-term outlook remains positive.
Bottom Line
While benchmark indices continue to consolidate, selective stocks are offering breakout opportunities for traders. As always, keeping stop losses tight and position sizes disciplined is key in a low-volume, range-bound market.
Disclaimer: This article is for educational purposes only. The views and recommendations mentioned are those of the analyst and do not represent the views of Axpert Media. Investors should consult certified financial advisors before making investment decisions.
