Breakout stocks to buy or sell: Sumeet Bagadia recommends five shares to buy today — 23 July 2026

Buy or sell stocks: The Indian stock market ended sharply lower on Wednesday, July 22, as selling pressure across sectors dragged benchmark indices down nearly 1% each, with mid- and small-cap stocks witnessing steeper losses.

The Sensex tumbled 715 points, or 0.92%, to settle at 76,755.05, while the Nifty 50 declined 191 points, or 0.79%, to close at 23,996.25. Broader markets underperformed, with the Nifty Midcap 100 index falling 1.09% and the Nifty Smallcap 100 index plunging 1.54%.

Nifty 50 began the session on a weak note and came under sustained selling pressure during the first half, as negative sentiment weighed on investor confidence. The benchmark slipped sharply in early trade before finding buying support near the day's lows, which helped it recover part of the losses during the afternoon session. However, the recovery proved short-lived, with profit booking emerging at every bounce and restricting any meaningful upside. The index finally settled at 23,996.25, down 191.45 points (-0.79%), ending the session just below the 24,000 mark. Overall, the intraday price action reflected cautious market sentiment, with sellers dominating despite intermittent buying at lower levels.

According to Sumeet Bagadia, Executive Director at Choice Broking, Nifty formed a strong bearish candle, signalling continued profit booking after the recent consolidation.

“Despite the weakness, the index managed to find support around its 50-day EMA, indicating that this remains an important demand zone for the bulls. The RSI eased to 48.61, reflecting weakening momentum, while India VIX climbed 5.50% to 13.29, pointing to increased market volatility. Immediate support is seen at 23,800–23,850, whereas 24,150–24,200 remains the immediate resistance zone. Unless the index breaks decisively on either side, it is likely to remain within the 23,800–24,200 range, with the overall bias remaining Sideways,” said Bagadia.

Bank Nifty witnessed a weak trading session as banking stocks remained under pressure for most of the day. After opening lower, the index extended its decline during the morning session, reflecting broad-based weakness across the financial space. Although value buying emerged intermittently during the afternoon, the recovery lacked conviction and failed to alter the overall market structure. Selling resurfaced towards the closing hours, pulling the index lower to settle at 57,126.80, a loss of 708.55 points (-1.23%). The session reflected continued caution among traders, with market participants preferring to lighten positions rather than build fresh long exposure.

Bagadia noted that Bank Nifty formed a large bearish candle, reinforcing the prevailing short-term weakness.

“The index also slipped below its 20-day EMA, signalling a deterioration in short-term trend strength and indicating that bears currently hold the upper hand. Immediate support is placed at 56,300–56,400, while 57,800–57,900 is expected to cap any near-term recovery. A move back above the resistance zone would improve sentiment and could attract fresh buying interest, whereas a sustained break below support may accelerate the ongoing correction. Until a decisive move emerges, Bank Nifty is expected to trade within the 56,300–57,900 range, with the overall bias remaining Sideways to Bearish,” he added.

Sumeet Bagadia recommends five breakout shares to buy on Thursday, 23 July: Chennai Petroleum Corporation, Gandhar Oil Refinery India, Polyplex Corp, Divgi TorqTransfer Systems, and Aegis Logistics.

1] Chennai Petroleum Corporation: Buy at ₹1307, Target ₹1400, Stop Loss ₹1250

Chennai Petroleum Corporation is witnessing strong bullish momentum and is currently trading around ₹1,307, marking a fresh lifetime high. The stock recently respected its 50-day EMA, from where it witnessed a sharp reversal, reaffirming the strength of the prevailing uptrend. Technically, it continues to form a classic higher high–higher low structure, indicating sustained buying...