Breakout stocks to buy or sell: Sumeet Bagadia recommends five shares to buy today — 20 July 2026

Buy or sell stocks: The Indian benchmark indices, the Sensex and the Nifty 50, ended sharply higher on Friday, 17 July, driven by strong buying in Reliance Industries and major private banking stocks ahead of the release of their June quarter earnings.

The Sensex surged 965 points, or 1.25%, to settle at 78,151.45, while the Nifty 50 climbed 262 points, or 1.09%, to close at 24,334.30.

Broader markets, however, underperformed the benchmarks, with the Nifty Midcap 100 index declining 0.41% and the Nifty Smallcap 100 index falling 0.21%.

Nifty 50 ended the session at 24,334.30, gaining 261.55 points (+1.09%), after a strong broad-based rally. The index opened on a firm note and maintained positive momentum throughout the session, consistently forming higher highs and higher lows before closing near the day's high. The sharp recovery indicates renewed buying interest, with sustained strength across large-cap stocks lifting overall market sentiment.

According to Sumeet Bagadia, Executive Director at Choice Broking, Nifty formed a strong bullish candle on the daily chart and reclaimed the key 24,300 zone, while also closing above its short-term moving averages, reflecting improving price structure.

"The index is now approaching the crucial resistance zone near 200-Day EMA, where a decisive breakout could trigger further upside momentum. Sector-wise, Private Banks, Financial Services, Auto, IT and Realty led the advance, whereas Pharma and Healthcare witnessed profit booking. The RSI strengthened to 58.48, indicating improving bullish momentum, while the MACD remained above the signal line with a rising histogram, signalling strengthening positive momentum.

In the derivatives segment, the PCR improved to 1.13, reflecting a bullish undertone. Significant Call Open Interest is placed at 24,300–24,500, while Put Open Interest remains concentrated at 24,300–24,200, indicating a strong support base. Immediate support is seen at 24,150–24,200, while 24,500–24,550 remains the next key resistance zone," said Bagadia.

Bank Nifty witnessed a strong rebound, ending the session at 58,521.40, up 939.15 points (+1.63%). After opening with a positive bias, the index extended its gains throughout the day, supported by sustained buying across heavyweight private banking stocks. It is now approaching the previous swing-high zone and closed near the day's high, reflecting broad-based strength. Federal Bank, Kotak Bank, and ICICI Bank emerged as the key contributors, driving the rally in the banking index.

On the Bank Nifty outlook, Bagadia said, “Technically, Bank Nifty has formed a strong bullish candlestick, confirming a decisive breakout above the recent consolidation range and strengthening the ongoing uptrend. The index is trading comfortably above its key moving averages, highlighting improving momentum and robust buying interest. Support is placed at 58,000–58,100, while 58,800–59,000 remains the immediate resistance zone. A sustained move above this hurdle could extend the rally further, while the support zone is expected to attract buying on any near-term dip.”

Sumeet Bagadia recommends five breakout shares to buy on Monday, 20 July: Vaibhav Global, Bharat Forge, Aegis Logistics, Indo Borax and Chemicals, and Exide Industries.

1] Vaibhav Global: Buy at ₹262, Target ₹285, Stop Loss ₹245

Vaibhav Global is trading around 262, demonstrates a highly constructive trend reversal pattern on its daily chart, executing a decisive breakout from a multi-month accumulation floor. The price action has successfully broken above all major overhead hurdles, including its 20, 50, 100, and long-term 200-day exponential moving averages, signalling a complete structural shift in favour of the bulls. Meanwhile, the daily relative strength index has accelerated near 66, validating strong upward velocity and healthy near-term momentum with ample breathing room to extend. Driven by this impulsive reversal structure, the stock is technically well-alig...