Three powerful stocks have the potential of a strong breakout; Do you hold any?

Nifty 50 opened with a gap lower on negative global trends. In this post, we have hand-picked three powerful stocks having the potential for a strong breakout.

Nifty 50 opened with a gap down at 17,188.65, owing to negative global trends. Wall Street's key indices slumped on Friday. This was due to Fed Chairman Jerome Powell's address at the Jackson Hole conference.

Powell emphasised that the Fed is determined to raise interest rates to reduce inflation. Nasdaq Composite dropped 3.94 per cent, Dow Jones sank 3.03 per cent, and S&P 500 plunged 3.37 per cent.

Asian markets began lower on Monday, reflecting the effect of Powell's hawkish speech. This was also due to increasing bond yields in Europe.

Oil rose on Monday on prospects of an OPEC supply cut. The OPEC production cut would very certainly counterbalance the US Fed's fears about an economic downturn. Brent crude rose 1.07 per cent to 100.07 dollars a barrel on Monday. WTI futures are up 1.3 per cent to USD 94.02 per barrel, while natural gas futures are up about 1 per cent.

Nifty 50 was trading at 17,342.65 at the time of writing, down 216.25 points (1.23 per cent). Broader market indexes outperformed frontline indices. Nifty Mid-Cap 100 index lost 0.96 per cent, while the Nifty Small-Cap 100 index fell 0.92 per cent.

The advance-decline ratio is poor. On the BSE, 2,114 stocks dipped, 1,325 jumped, and 204 stayed unchanged. Except for FMCG, all sectors traded in the red. IT, banking, realty, and media were the biggest losses.

As of August 26, FIIs were net sellers while DIIs were net purchasers, according to preliminary statistics. Foreign Institutional Investors (FII) sold Rs 51.12 crore worth of shares. Domestic Institutional Investors (DII) purchased shares worth Rs 453.59 crore.