Breakout stocks to buy or sell: Sumeet Bagadia recommends five shares to buy today - 9 July 2026

Buy or sell stocks: Amid escalating tensions between the US and Iran and a sharp rise in crude oil prices, the Indian stock market opened on a weak note in early trade on Wednesday. Selling pressure intensified as the session progressed, with the benchmark indices plunging more than 2%, while 13 of the 16 major sectoral indices ended in the red.

The Nifty 50 opened lower at 24,259 and slipped to an intraday low before closing at 23,897, down nearly 500 points for the day. Similarly, the BSE Sensex started with a gap-down opening at 77,816, fell to an intraday low of 76,259, and eventually settled at 76,522, marking a decline of 1,658 points.

Nifty 50 opened on a weak note at 24,259.55, around 139.15 points lower than the previous close, reflecting a gap-down start amid negative global cues. The index remained largely range-bound during the first half and touched an intraday high of 24,300.00. However, selling pressure intensified in the second half, leading to sharp profit booking across the broader market. Nifty plunged to an intraday low of 23,805.20 before recovering marginally to close at 23,882.05, down 516.65 points (-2.12%). The sharp decline indicates a decisive shift in sentiment, with bears dominating the session after the initial consolidation.

According to Sumeet Bagadia, Executive Director at Choice Broking, the index formed a strong bearish candlestick on the daily chart, indicating aggressive selling pressure and a breakdown below its short-term moving averages. The sharp fall suggests that the recent recovery has lost momentum, while the price action reflects increased weakness as the index slipped below the crucial 24,000 psychological mark. The 23,600–23,650 zone is expected to act as immediate support, whereas 24,000–24,050 remains the key resistance. A sustained move above the resistance may trigger short-covering, while a breakdown below the support zone could extend the ongoing corrective phase.

“The RSI slipped to 48.51, indicating that momentum has weakened considerably and shifted into the neutral zone following the sharp sell-off. India VIX surged 26% to 14.68, reflecting a sharp rise in market volatility and increased investor caution after the steep decline. Market positioning in the derivatives segment remained cautious, with significant Call Open Interest concentrated at the 24,000 and 24,200 strikes, indicating strong overhead resistance, while notable Put Open Interest at the 23,900 and 23,800 strikes is expected to provide immediate support in the near term,” said Bagadia.

Bank Nifty witnessed a sharp corrective session, closing at 56,742.60, down 1,458.10 points (-2.51%). The index opened with a gap-down of around 282 points at 57,918.25 against the previous close of 58,200.70. After consolidating during the first half and touching an intraday high of 58,075.60, intense selling pressure emerged in the second half, dragging the index to an intraday low of 56,549.40 before it settled near the day's lower range, reflecting broad-based profit booking.

Bagadia noted that Bank Nifty formed a strong bearish candlestick, indicating aggressive selling after failing to sustain above the 58,000 mark. The sharp decline has pulled the index below its short-term 20 Days EMA, while it is now hovering near the key medium-term support zone. Price action suggests that sellers remained firmly in control throughout the second half, with every minor pullback witnessing fresh supply, reflecting a decisive breakdown in near-term momentum.

“The RSI has cooled to 48.51, slipping back to the neutral zone, indicating weakening bullish momentum after the recent correction. The immediate support is placed at 56,000–56,200, while 57,200–57,500 is likely to act as the immediate resistance zone. As long as the index holds above the 56,000–56,200 support area, a technical pullback cannot be ruled out. However, a sustained move above 57,500 will be required to revive bullish sentiment, whereas a decisive break below ...