Breakout stocks to buy or sell: Indian benchmarks Sensex and Nifty 50 broke their five-session losing run on Monday, January 12, led by value buying in an oversold market and signs that the US and India were moving toward resolving differences over their trade deal.

The indices saw a strong rebound during the day. The 30-share Sensex had slipped more than 700 points to an intraday low of 82,861 in the first half, but recovered sharply to settle at 83,878.17, up 302 points, or 0.36%—marking a rebound of 1,017 points from the day’s low. The Nifty 50 also ended higher, gaining 107 points, or 0.42%, to close at 25,790.25.

Stock market outlook

Nifty 50

According to Sumeet Bagadia, Executive Director at Choice Broking, the Nifty 50 opened on a flat note and extended its decline during the first half of the session; however, it staged a sharp recovery of nearly 330 points in the latter half, showcasing strong intraday buying interest and resilience at lower levels.

“The index decisively broke above the resistance of 25,750 and closed at 25,790.25, reflecting a modest improvement in near-term sentiment despite prevailing caution. Immediate resistance is placed in the 25,950–26,000 zone, while crucial support is located in the 25,650–25,700 range.

Derivatives data indicate heavy put writing at the 25,700 strike along with strong call writing at the 26,000 strike, establishing a near-term trading range. As long as the Nifty holds above the 25,600 mark, a selective buy-on-dips strategy may be considered, albeit with strict stop-losses placed at 25,500 to manage downside risk effectively,” Bagadia said.

Bank Nifty

The Bank Nifty opened on a flat note and witnessed a sharp bearish move of nearly 450 points, slipping to an intraday low of 58,864. However, the index staged a strong rebound of approximately 676 points from the lower levels, reflecting aggressive buying interest and a clear defence of key support zones.

“Immediate resistance is placed in the 59,800–59,900 zone, while the 59,200–59,300 support band remains critical for maintaining near-term stability in the index. On the daily charts, the RSI stands at 51.40 and is trending higher, suggesting strengthening momentum and a gradual shift in favour of the bulls.

Despite the short-term weakness, the market has demonstrated underlying strength. Accordingly, traders are advised to maintain a bullish bias and adopt a buy-on-dips strategy near key support levels, supported by disciplined risk management and appropriate stop-loss placements to guard against deeper downside risks,” Bagadia added.

Breakout stocks to buy today

Breakout stocks are those stocks that move past their established support or resistance levels. Breakouts often signal that a stock may be poised for a strong price move.

Amid ongoing market conditions, Sumeet Bagadia has recommended five breakout shares to buy today – Fedbank Financial Services, Asian Paints, Nestle India, Alkem Laboratories, and Union Bank of India.

1] Fedbank Financial Services: Buy at ₹163.59, target ₹177, stop loss ₹157

FEDFINA is in a strong bullish trend and is currently trading near 163.6 after a sharp breakout above its prior consolidation zone. The stock is holding firmly above all key EMAs, which are positively aligned, indicating strong trend strength. Volumes have improved during the recent up move, supporting the breakout. As long as price sustains above 157, the trend remains intact, with potential upside toward 177 in the near term.

2] Asian Paints: Buy at ₹2896, target ₹3100, stop loss ₹2800

ASIANPAINT is showing renewed bullish momentum and is trading around 2,896 after reclaiming the 2,800 resistance zone. The stock is comfortably above its 20, 50, and 100-day EMAs, signalling trend continuation. The recent higher-high and higher-low structure reflects strong buying interest. Sustaining above 2,800 keeps the bias positive, and a continuation move could lead the stock toward the 3,100 zone.

3] Nestle India: Buy at ₹1312, target ₹1400, stop loss ₹1270

NESTLEIND is maintaining a positive trend and is trading near 1,312, consolidating after a steady recovery. The stock is holding above its short- and medium-term EMAs, which are sloping upward, indicating bullish structure. Buying interest is visible on minor dips, suggesting accumulation. As long as price holds above 1,270, the setup remains constructive, with a potential upside move toward the 1,400 level.

4] Alkem Laboratories: Buy at ₹5867, target ₹6300, stop loss ₹5656

ALKEM has resumed its uptrend and is trading around 5,867 after breaking out from a falling channel pattern. The stock is trading above all major EMAs, with the 20-day EMA acting as immediate support. The breakout is supported by improving volumes, indicating strength. Holding above 5,656 keeps the bullish bias intact, and a sustained move could open the path toward the 6,300 target zone.

5] Union Bank of India: Buy at ₹164, target ₹177, stop loss ₹157

UNIONBANK is in a strong uptrend and is currently trading near 164 after a decisive breakout above recent resistance. The stock is well supported by rising EMAs, reflecting sustained bullish momentum. Higher highs and higher lows indicate trend continuation, with volumes expanding on up moves. As long as price stays above 157, the structure remains positive, and the stock could advance toward the 177 level.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.