Friday’s strong rally provided the market with the confidence that had been missing over the last few weeks. Having successfully defended key support levels, this sharp upward momentum could now spark a sustained trend in the coming sessions.
Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman
SUMICHEM (current price: ₹513.70)
Buy above ₹515, stop ₹490, target ₹560 (Multiday)
Why it’s recommended: Sumitomo Chemical India Limited is a leading Mumbai-based agrochemicals and household insecticides company. With the strong push in the chemical sector in the last few months this counter has seen some steady upside. The formation of a long body candle with possibility to give a breakout augurs well for prices in the next few days. Also, news of a stake sale of the Saudi business has generated strong buying at lower levels. Go long.
Key metrics:
P/E: 47.20,
52-week high: ₹665,
Volume: 2.26M
Technical analysis: Support at ₹430, resistance at ₹630.
Risk factors: Heavy reliance on the cyclical oil and gas sector and global commodity markets.
Buy: above ₹515.
Stop loss: ₹490.
Target price: ₹560 (2 Months)
GICRE (current price: ₹365)
Buy above ₹370, stop ₹353, target ₹403 (multiday)
Why it’s recommended: General Insurance Corporation of India (GIC Re) is India’s premier state-owned reinsurance company. They operate as the country's sole domestic national reinsurer, providing global reinsurance solutions across fire, marine, aviation, engineering, and health sectors. The steady downward trajectory over the last few weeks is seen to be receding and a recovery now looks possible.
Key metrics:
P/E Ratio : 7.63,
52-week high: ₹417.95,
Volume: 868.05K.
Technical analysis: Support at ₹350, resistance at ₹550.
Risk factors: Heavy reliance on equity and bond market performance, vulnerability to natural catastrophes, and persistent underwriting pressures.
Buy: above ₹370
Stop loss: ₹353
Target price: ₹403 (2 Months)
MEESHO (current price: ₹194.11)
Buy above ₹195, stop ₹186, target ₹214 (Multiday)
Why it’s recommended : Meesho Ltd. is an Indian e-commerce platform founded in 2015 operating on a zero-commission model. It connects consumers, sellers, and logistics partners to provide budget-friendly fashion, electronics, and daily essentials across India. Post its listing the stock has not been showing much traction. However, with the retail consumer space shifting gears, we can expect the trends to pick up. The Relative Strength Index shows prices have moved beyond an important threshold and are showing signs of a recovery. Look to go long.
Key metrics:
P/E Ratio: 3.28,
52-week high: ₹254.65,
Volume: 12.51M.
Technical analysis: Support at ₹165, resistance at ₹225.
Risk factors: A heavy reliance on Cash-on-Delivery (CoD) orders inflating logistics costs, and ₹594 crore in contingent liabilities.
Buy: above ₹195
Stop loss: ₹186
Target price: ₹214 (2 Months)
Stock market update
Indian equities experienced a volatile but ultimately positive week, driven by strong institutional flows and sectoral rotations. The Nifty 50 and Sensex began the week with modest gains, supported by upbeat pre-quarterly updates, steady monsoon progress, and lower crude prices. On 7 July, benchmarks consolidated near 10-week highs, though profit-taking capped advances. But 8 July saw a sharp sell-off, with both indices tumbling over 2% amid renewed US-Iran tensions, a spike in Brent crude above $78 a barrel, weak global cues, and a surge in India VIX, signaling heightened investor anxiety.
The following day, markets rebounded modestly as investors positioned themselves ahead of Tata Consultancy Services’ earnings. This was aided by persistent foreign inflows and strength in defensive sectors like pharma and healthcare. The week ended with a strong rally as FIIs pumped in ₹2,603.72 crore—their largest single-day inflow of the week—while DIIs added ₹2,019.68 crore. The Sensex closed at 77,569 and the Nifty reclaimed 24,207, with gains across most sectors. For the week, FIIs were net buyers of ₹4,669.88 crore and DIIs contributed ₹8,275.62 crore, underscoring robust institutional support that helped Dalal Street finish on a high despite midweek volatility.
Outlook for trading
The market had been looking for a negative catalyst to trigger a correction. Throughout a largely flat week, early declines were successfully cushioned around near-term support levels. While the index attempted a brief relief rally from the 24,000 mark, these bounces lacked genuine buying conviction and were primarily driven by short-covering. Even a few gap-up openings failed to generate sustained upward momentum.
Fresh geopolitical uncertainty—ignited by the sudden breakdown of the US-Iran peace deal—sparked fears of an escalating trade conflict. While markets historically retreat during periods of heightened uncertainty, the impact of these recurring tensions is beginning to wane. This was evident on Wednesday when the Nifty staged a quick recovery after an initial lower open, clawing back above 24,000. Although sentiment remains fragile, the index has shown structural resilience by holding these key technical levels into the weekend.
Sector performance was highly fragmented, especially after Wednesday's sharp intraday slide disrupted the market's rhythm. This range-bound, volatile environment demands high nimbleness from traders looking to turn a profit. At this juncture, a stock-specific approach yields better results than broad index bets. While the broader market remains mixed, the IT sector—supported by rock-bottom valuations and an improving domestic AI landscape—could soon spark a long-awaited revival. Concurrently, stabilizing banking heavyweights are beginning to lift, which should provide the necessary fuel for the Bank Nifty to join the recovery.
Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.
Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.