Breakout stocks to buy or sell: Sumeet Bagadia recommends five shares to buy today — 21 July 2026

Buy or sell stocks: Benchmark equity indices Sensex and Nifty 50 closed in the red on Monday, July 20, mirroring weak global sentiment as rising US-Iran tensions weighed on investor mood.

The Sensex fell 443 points, or 0.57%, to settle at 77,708.52, while the Nifty 50 lost 96 points, or 0.39%, ending the session at 24,238.50.

Despite the broader market weakness, mid- and small-cap stocks outperformed. The Nifty Midcap 100 advanced 0.60%, while the Nifty Smallcap 100 gained 0.16%.

Nifty 50 ended the session at 24,238.50, declining 95.80 points (-0.39%) after a range-bound trading session influenced by cautious global cues. The index opened on a weak note and remained under pressure during the first half, slipping to an intraday low of 24,135.85 before witnessing steady buying from lower levels. A gradual recovery through the latter half helped the benchmark trim a significant portion of its losses and settle well above the day's low, reflecting resilience despite the negative close. The index touched an intraday high of 24,266.10, but failed to sustain above higher levels as profit booking capped the upside. Overall, price action indicated that buyers continued to defend lower levels while traders remained selective amid mixed global sentiment.

According to Sumeet Bagadia, Executive Director at Choice Broking, Nifty formed a small-bodied bullish recovery candle with a long lower shadow, indicating buying interest emerging at lower levels after early weakness. Sector-wise, NIFTY PSU Bank, Pharma, Healthcare and Media outperformed, while Private Bank, Financial Services, Auto and IT remained under pressure.

“The RSI stood at 55.93, suggesting momentum continues to favour the bulls despite short-term consolidation, while the PCR improved to 1.09, reflecting a balanced-to-positive derivatives setup. Open Interest data shows significant Call writing at 24,300–24,500 and Put support at 24,000–24,200, highlighting a likely trading range in the near term. Immediate support is placed at 24,100–24,150, whereas 24,300–24,350 remains the crucial resistance zone, with a sustained move above this hurdle likely to strengthen bullish momentum,” said Bagadia.

Bank Nifty settled at 57,945, down 576.40 points (-0.98%), after witnessing a recovery session marked by a sharp gap-down opening. The index initially came under selling pressure following weak opening sentiment, but buying interest near lower levels helped it recover a large part of the intraday decline. Throughout the second half, the index gradually moved higher, indicating that participants were willing to accumulate around key support levels. Despite the recovery, the benchmark closed in negative territory, reflecting continued caution in the banking space. The overall session suggested that while bears dominated the opening trade, bulls managed to regain control during the latter half of the day.

Bagadia noted that the index formed a recovery candle, signalling strong buying demand from lower levels and indicating that downside pressure is being absorbed. The index continues to trade above its 20, 50, 100 and 200-day moving averages, keeping the broader market structure constructive despite the day's decline.

“The immediate support zone is placed at 57,450–57,500, while 58,400–58,450 is expected to act as the first major hurdle for the ongoing recovery. As long as the index holds above the support zone, buying interest is likely to remain intact and could push Bank Nifty towards higher resistance levels. However, a decisive breach below support may trigger fresh selling pressure and lead to an extended corrective phase in the near term,” said Bagadia.

Sumeet Bagadia recommends five breakout shares to buy on Monday, 21 July: JSW Energy, Bajaj Healthcare, Steel Strips Wheels, Saregama India, and Gabriel India.

JSW Energy has witnessed a strong resurgence after successfully taking support near its 100-day and 200-day EMA, indicating that the long-term trend remains firmly i...