India's key equity benchmarks, the Sensex and Nifty 50, extended their losing streak for the third consecutive trading session on Wednesday, December 17. Persistent concerns over a weakening rupee, sustained foreign fund outflows, and delays in a crucial India-US trade deal weighed heavily on investor sentiment.
Market Performance and Key Levels
The 30-share Sensex dropped 120 points, or 0.14%, to end the day at 84,559.65. Similarly, the broader Nifty 50 index declined by 42 points, or 0.16%, closing at 25,818.55. The broader market segments underperformed the main indices. The BSE Midcap index fell 0.53%, while the Smallcap index witnessed a sharper decline of 0.85%.
Sumeet Bagadia, Executive Director at Choice Broking, noted that market sentiment has weakened as the Nifty 50 closed near the 25,800 mark. He highlighted that this level is close to a crucial technical support zone around the 50-day exponential moving average (DEMA) of 25,750.
Technical Outlook and Strategy
"A decisive break below the 25,750 support could push the index towards testing levels between 25,500 and 25,400," Bagadia stated. On the upside, he identified 26,000 as a key resistance level. A sustained close above this hurdle could reignite bullish momentum in the market.
Given the current volatility, Bagadia advises investors to adopt a stock-specific approach. He suggests focusing on scrips that demonstrate technical strength, with breakout stocks presenting a potential opportunity.
Five Breakout Stock Recommendations
Based on technical analysis, Sumeet Bagadia recommends the following five shares for consideration on Thursday, December 18:
- GRM Overseas: Consider buying at ₹470. The suggested target price is ₹505, with a stop loss set at ₹450.
- India Cements: Consider buying at ₹436. The suggested target price is ₹470, with a stop loss set at ₹420.
- Mahindra & Mahindra Financial Services: Consider buying at ₹351. The suggested target price is ₹375, with a stop loss set at ₹339.
- Avanti Feeds: Consider buying at ₹854. The suggested target price is ₹915, with a stop loss set at ₹825.
- MM Forgings: Consider buying at ₹372. The suggested target price is ₹400, with a stop loss set at ₹360.
Disclaimer: This information is intended for educational purposes only. The views and investment tips expressed are those of the individual analyst. Readers are strongly advised to consult with certified financial experts before making any investment decisions.
