Breakout Stocks to Buy or Sell: Sumeet Bagadia Recommends Five Stocks for February 18, 2025

Mumbai: After enduring eight consecutive sessions of decline, the Indian stock market rebounded on Monday, February 17, as bulls took charge of Dalal Street, pushing key indices into positive territory. The Nifty 50 closed with a 0.13% gain at 22,970, while the Sensex recorded a modest increase of 0.08%, settling at 75,996. This recovery was also reflected in the mid-cap and small-cap segments, which had previously faced intense selling pressure.

Market analysts believe that this turnaround may indicate a potential shift in sentiment, with investors regaining confidence after a prolonged phase of market correction. Sumeet Bagadia, Executive Director at Choice Broking, has identified five breakout stocks that, based on technical analysis, present strong buying opportunities in the short to medium term.

Market Outlook: Technical Indicators Suggest Stability

According to Bagadia, the Nifty 50 index has found solid support at 22,800 and could move towards 23,300 in the coming sessions if the current positive momentum sustains. A decisive close above this level could set the stage for further gains toward 23,800.

“The recent correction provided attractive buying opportunities in select stocks. As long as Nifty remains above 22,800, we can expect a short-term uptrend. However, investors must maintain a stock-specific approach and look for technically strong counters,” Bagadia stated.

Top 5 Stocks to Buy Today (February 18, 2025)

Based on technical analysis and market trends, Bagadia has recommended the following five breakout stocks for investors:

1. Sanofi India Ltd (NSE: SANOFI)

• Entry Price: ₹5,329
• Target Price: ₹5,702
• Stop Loss: ₹5,143
• Rationale: The stock has demonstrated strong breakout momentum, with higher trading volumes and a bullish RSI (Relative Strength Index) crossing 60. A sustained move above ₹5,400 could trigger further upside.

2. Affle (India) Ltd (NSE: AFFLE)

• Entry Price: ₹1,544
• Target Price: ₹1,652
• Stop Loss: ₹1,489
• Rationale: Affle has broken past its resistance zone of ₹1,520, confirming an upward breakout. The MACD crossover also signals a strong bullish trend, with volume accumulation indicating fresh buying interest.

3. Godawari Power and Ispat Ltd (NSE: GPIL)

• Entry Price: ₹175.02
• Target Price: ₹187
• Stop Loss: ₹168
• Rationale: The stock has seen a trend reversal, supported by a strong base at ₹170. The 200-day moving average (DMA) is providing support, and the stock appears poised to test higher resistance levels.

4. Capri Global Capital Ltd (NSE: CGCL)

• Entry Price: ₹166.68
• Target Price: ₹178
• Stop Loss: ₹161
• Rationale: The stock has formed a bullish flag pattern, signaling further upward movement. The momentum indicators suggest strong buying activity, and if it sustains above ₹170, the next potential resistance is at ₹180+.

5. Bayer CropScience Ltd (NSE: BAYERCROP)

• Entry Price: ₹4,587.60
• Target Price: ₹4,908
• Stop Loss: ₹4,427
• Rationale: A strong breakout on daily charts, along with high FII (Foreign Institutional Investor) participation, suggests that the stock is in an accumulation phase. The RSI above 70 confirms the bullish momentum, making it a potential high-momentum stock.

Market Sentiment and Investment Strategy

The broader market has shown signs of stabilization, and investors are looking for quality stocks that have the potential for short-term breakouts. The stocks recommended by Bagadia reflect strong technical patterns, indicating that they could outperform in the near term.

However, investors should remain cautious and:

• Monitor global cues: Geopolitical developments and macroeconomic indicators could influence market trends.
• Stick to stop-loss levels: Volatility remains high, and adhering to pre-defined exit points is crucial.
• Follow a sector-wise approach: With sectors like pharmaceuticals, financials, and energy showing strength, a diversified strategy can minimize risk.