Stock market crash: Sumeet Bagadia recommends 5 breakout stocks to buy despite India VIX index rising 50% in one month
The India VIX Index touched a high of 39.30 during 2014 Lok Sabha elections whereas it touched nearly 30 mark during 2019 Lok Sabha polls.
Stock market today: Despite the persistent rise in the India VIX index, the Indian stock market has shown remarkable resilience, continuing to correct for the fourth straight session. Today, the Nifty 50 opened lower at 22,231 and went on to touch an intraday low of 22,185. The BSE Sensex today opened with a downside gap and touched an intraday low of 73,073 mark whereas the Bank Nifty today registered arouund 0.65 percent fall within an hour of stock market’s opening bell. The India VIX today extended its rally for yet another sessions and touched a new 52-week peak of 18.32 during morning deals. While touching this new 52-week high, the Indian VIX Index registered nearly 50 percent rise in one month. However, Sumeet Bagadia, Executive Director of Choice Broking still believes that stock market investors can make money in the cash segment. The Choice Broking expert said that some stocks have given breakout on chart patterns, such as a double bottom or a bullish flag, despite the recent stock market crash and rising India VIX index.
Sumeet Bagadia on India VIX today
The Choice Broking expert, Sumeet Bagadia, maintains a positive outlook on the India VIX Index, also known as the fear gauge. He sees it as an indication of the fear factor existing in the market ahead of the Lok Sabha election results. However, he reassures that the fear factor exising in stock market today is not that heavy as such rise are normal for Dalal Street investors. He points out that the India VIX Index, which measures the market’s expectation of volatility over the next 30 days, touched a high of 39.30 during 2014 Lok Sabha elections whereas it touched nearly 30 mark during 2019 Lok Sabha polls. He further elaborated that India VIX surged to 92 levels during stock market crash in 2008 whereas it touched 86.63 peak when the Indian stock crashed in 2020 after the outbreak of COVID pandemic.
Speaking on the India VIX Index, Sumeet Bagadia said, “India VIX today is facing resistance at 19 levels whereas it has made a strong base around 17. On breaching 19 hurdle, the index may touch 22 mark whereas on breaching below 17, we can expect the volatility index to come down towards 14 to 12 level.”
Breakout stocks to buy today
On breakout stocks to buy today, Sumeet Bagadia recommended five shares to buy today — Selan, Arvind, CG Power, Gillette, and Godrej Consumer Products Here we list out full details regarding breajout stocks today:
1] Selan: Buy at CMP, target ₹750, stop loss ₹686;
2] Arvind: Buy at CMP, target ₹380 and ₹400, stop loss ₹344;
3] CG Power: Buy at CMP, target ₹660, stop loss ₹540;
4] Godrej Consumer Products: Buy at CMP, target ₹1440, stop loss ₹1260; and
5] Gillette: Momentum buy at CMP, target ₹7327, stop loss ₹6548.
Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, and not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.