The Indian equity markets witnessed a robust rally on Monday, December 22, extending gains for a second consecutive session. The upswing was fueled by a recovery in the domestic currency and optimistic signals from global markets.
Market Rally: Key Indices and Broader Performance
Benchmark indices posted significant gains. The Sensex jumped 638 points, or 0.75%, to close at 85,567.48. Similarly, the Nifty 50 index rose by 206 points, or 0.79%, settling at 26,172.40. The bullish sentiment permeated the broader markets as well. The BSE Midcap index advanced by 0.86%, while the Smallcap index outperformed with a sharper surge of 1.12%.
Drivers Behind the Market Recovery
The market's positive momentum was primarily driven by two key factors. Firstly, the Indian rupee showed signs of stability. After hitting a record low beyond the 91 mark against the US dollar last week, it closed only 3 paise weaker at 89.70 on Monday. This rebound, coupled with renewed inflows from foreign institutional investors, provided strong support.
Secondly, encouraging global cues played a vital role. Growing expectations of additional interest rate cuts by the US Federal Reserve in the coming year boosted investor sentiment worldwide, positively impacting Indian shores.
Expert View and Stock Recommendations
Sumeet Bagadia, Executive Director at Choice Broking, noted that the market sentiment has strengthened with the Nifty 50 sustaining above the 26,000 level. "The key benchmark index is heading towards 26,450 levels. So, one should maintain a stock-specific approach and look at those stocks that are looking strong on the technical chart. Looking at breakout stocks can be a good option," Bagadia advised.
Based on this technical outlook, Bagadia has recommended five breakout stocks for investors to consider buying today. The recommendations include specific entry points, targets, and stop-loss levels.
Detailed Stock Picks by Sumeet Bagadia
Varun Beverages: Buy at ₹485.65, target ₹515, stop loss ₹470.
Triveni Engineering and Industries: Buy at ₹389.55, target ₹415, stop loss ₹374.
BEML: Buy at ₹1795.80, target ₹1930, stop loss ₹1725.
Chambal Fertilisers and Chemicals: Buy at ₹465.95, target ₹505, stop loss ₹445.
Titagarh Rail Systems: Buy at ₹816.50, target ₹890, stop loss ₹777.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies. Investors are advised to consult certified experts before making any investment decisions.
