Breakout stocks to buy or sell: Sumeet Bagadia recommends five shares to buy today — 22 July 2026

Buy or sell stocks: The Indian stock market closed in the red on Tuesday, July 21, with benchmark indices, the Sensex and the Nifty 50, declining for a second straight session as mounting tensions in the Middle East and a rise in crude oil prices continued to dampen investor sentiment.

The Sensex fell 238 points, or 0.31%, to settle at 77,470.11, while the Nifty 50 slipped 51 points, or 0.21%, to close at 24,187.70.

Nifty 50 opened at 24,216 on a weak note and fell to an intraday low of 24,135 during the first half of the session. Buying interest emerged near the previous day's low, helping the benchmark recover steadily through the latter half of the session. The index eventually closed at 24,187 with -0.21%, trimming most of its intraday losses and reflecting resilience despite a lack of strong follow-through buying. Throughout the session, Nifty traded within a narrow range, indicating cautious participation and the absence of any strong directional trigger. Overall, the price action suggests that buyers continue to defend lower levels while traders remain selective amid mixed market sentiment.

According to Sumeet Bagadia, Executive Director at Choice Broking, Nifty has formed a small-bodied Doji-like candle, highlighting indecision after the recent recovery while indicating that buyers continue to defend lower levels and find strong support near the 100 EMA.

“The index remains within a consolidation phase, with price action suggesting that a decisive breakout on either side of the current range will determine the next directional move. As long as the index sustains above the immediate support zone of 24,050–24,100, the short-term undertone is likely to remain positive. On the upside, 24,300–24,350 will act as the immediate resistance zone, and a sustained move above this hurdle could trigger fresh buying momentum. Until then, the index is expected to remain within the 24,050–24,350 range, with the overall bias remaining Sideways to Bullish,” said Bagadia.

Bank Nifty opened at 57,853 and traded with a subdued tone throughout the session, reflecting continued consolidation. The index touched an intraday high of 58,228, while persistent selling pressure pushed it to an intraday low of 57,803 before stabilising. Selective buying during the latter part of the session helped the index recover modestly, allowing it to close at 57,835, down 0.19%. The narrow trading range highlighted a lack of aggressive participation from both buyers and sellers, suggesting that market participants remained cautious ahead of fresh triggers. Overall, the day's price action reflected consolidation with a slightly negative undertone.

Bagadia noted that Bank Nifty formed a Gravestone Doji candle, signalling indecision and a pause in momentum after recent volatility. Despite the intraday weakness, the broader market structure remains stable, as the index continues to hold above its important support zone.

“Immediate support is placed at 57,450–57,500, while 58,200–58,250 remains the key resistance area. A sustained move above the resistance zone could revive bullish momentum, whereas a decisive break below support may invite fresh selling pressure. Until a breakout or breakdown occurs, Bank Nifty is expected to trade within the 57,450–58,250 range, with the overall bias remaining Sideways,” he added.

Sumeet Bagadia recommends five breakout shares to buy on Wednesday, 22 July: Rain Industries, Chennai Petroleum Corporation, Balaji Amines, Cyient DLM, and INOX India.

1] Rain Industries: Buy at ₹223, Target ₹240, Stop Loss ₹210

Rain Industries is trading around 223, demonstrates strong momentum expansion on its daily chart, staging a fresh breakout past its recent swing high. The stock continues to reinforce its bullish structural framework, trading comfortably above its ascending 20, 50, 100, and 200-day exponential moving averages. Down on the indicator panel, the daily relative strength index has accelerated near 67, validating sharp b...