Breakout stocks to buy or sell: Sumeet Bagadia recommends five shares to buy today - 16 July 2026

Buy or sell stocks: The Indian stock market settled higher on Wednesday, July 15, with benchmark indices Sensex and Nifty 50 ending in positive territory. The broader market also remained upbeat, as the mid- and small-cap indices advanced by up to 0.5%, despite heightened US-Iran tensions and a rise in crude oil prices.

The 30-share Sensex gained 130 points, or 0.17%, to close at 77,185.43, while the Nifty 50 climbed 26 points, or 0.11%, to settle at 24,078.50.

Nifty 50 closed at 24,078.50, gaining 26.45 points (+0.11%) after witnessing sharp intraday swings. The index opened with a mild gap-up of around 34 points and extended its early momentum to an intraday high of 24,220.35 during the first half. However, sustained profit booking from higher levels erased most of the gains, dragging the index to an intraday low of 24,010.55. Fresh buying near the psychological 24,000 mark helped Nifty recover from the day's lows and settle with marginal gains. The intraday setup highlighted strong resistance near higher levels, while buyers continued to defend declines around key support zones.

According to Sumeet Bagadia, Executive Director at Choice Broking, Nifty formed a candle with a long upper wick, indicating supply emerging near resistance despite the index maintaining its short-term recovery structure above key moving averages.

“The RSI edged up to 52.31, reflecting a mildly positive momentum, while PCR at 1.08 suggests a balanced to slightly bullish derivative setup. Max Pain remained at 24,100, with significant Call OI at 24,100–24,200 and Put OI at 24,100–24,000, reinforcing 24,100 as the immediate pivot. Support is placed at 23,900–23,950, whereas 24,250–24,300 remains the immediate resistance zone,” said Bagadia.

Bank Nifty closed the session at 57,757.85, advancing 295.55 points (+0.51%) after witnessing sharp intraday volatility. The index opened with a positive gap of around 181 points at 57,643.75 and extended its gains during the first half to hit an intraday high of 58,148.80. However, profit booking emerged at higher levels in the latter half, pulling the index down to 57,545.20 before it pared some losses and settled with moderate gains. Better relative performance in PSU banking stocks, while private banks remained subdued, helped the index maintain a positive close.

Bagadia noted that the index has formed a small-bodied candle with a long upper wick, reflecting supply pressure near higher levels.

“Despite the intraday reversal, the index continues to trade above its important medium-term moving averages, indicating that the broader trend remains favourable. Support is seen at 57,300–57,500, whereas 58,100–58,200 will act as the immediate resistance zone. A sustained move above this hurdle may strengthen bullish momentum, while a breach below support could invite fresh profit booking,” he said.

Sumeet Bagadia recommends five breakout shares to buy on Thursday, 16 July: Jubilant Pharmova, Tamilnad Mercantile Bank, Chennai Petroleum, Indigo Paints, and Knowledge Marine & Engineering Works.

1] Jubilant Pharmova: Buy at ₹1028, Target ₹1100, Stop Loss ₹977

Jubilant Pharmova has emerged from a prolonged consolidation phase and is now showing strong signs of a fresh bullish breakout. The stock has delivered a decisive close above the psychological ₹1,000 mark while sustaining above all its key moving averages, indicating improving trend strength. The 20-day EMA is on the verge of crossing above the 200-day EMA, signalling a potential long-term bullish crossover. Price action is also holding near its previous swing-high zone, suggesting buyers remain firmly in control.

The breakout has been supported by a notable rise in trading volumes, adding credibility to the move, while RSI has strengthened sharply to 67.68, reflecting strong momentum. A sustained move above current levels could drive the stock towards ₹1,100. On the downside, ₹977 acts as an important support and should be maintained as the stop-los...