Tremors continue to be felt across the board as the market took the wind out of our sails yet again. The constant volatility that we are now subjected too is resulting in high level of confusion. As uncertainty is very much present in the system the steps ahead will be more measured.
Indian equity markets closed sharply lower on 14 July as rising crude oil prices and weak global cues weighed heavily on sentiment. The Nifty 50 slipped below 24,100 early in the session, with selling pressure intensifying in IT, auto, and banking stocks. By the close, the Sensex had dropped 561 points to 77,054, while the Nifty fell 159 points to 24,052, both settling near their day’s lows.
Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman:
SBICARD (Cmp 638.85)
SBICARD: Buy above ₹639, stop ₹620 target ₹695 (Multiday)
- Why it’s recommended: SBI Cards and Payment Services Ltd. (SBICARD) is a major non-banking financial company in India and the country's second-largest credit card issuer, with over 22 million cards in force. The formation of a long body candle after a period of consolidation giving a breakout augurs well for the prices in the counter over the next few days. Also, newsflow of some stake sale of Saudi Business has generated some strong buying at lower levels. Go Long.
- Key metrics:
- P/E: 28.06,
- 52-week high: ₹965,
- Volume: 7.09M
- Technical analysis: Support at ₹580, resistance at ₹725.
- Risk factors: Heavily dependent on unsecured lending and remains vulnerable to macroeconomic and regulatory risks.
- Buy : above ₹639.
- Stop loss: ₹620.
- Target price: ₹695 (2 Months)
BHARTIHEXA (Cmp 1621.80)
BHARTIHEXA:Buy above ₹1625, stop ₹1555 target ₹1775 (Multiday)
- Why it’s recommended : Bharti Hexacom Limited is a subsidiary of Bharti Airtel providing consumer mobile, broadband, and fixed-line services across Rajasthan and the North East telecommunications circles in India. After being in a declining phase for last 6 months there prices formed a rounding bottom and is now moving out the cloud region indicating that the road ahead seems to be much firmer. The strong push to the upside after some support received from the Kumo cloud region is clearly highlighting that the dips are being bought into. Look to buy.
- Key metrics:
- P/E Ratio : 46.79,
- 52-week high: ₹1955.60,
- Volume: 448.85K.
- Technical analysis: Support at ₹1530, resistance at ₹2800.
- Risk factors: Regulatory policy shifts, intense market competition, Average Revenue Per User (ARPU) fluctuations, and vulnerabilities linked to spectrum allocation and government levies.
- Buy : above ₹1625
- Stop loss: ₹1555
- Target price: ₹1775 (2 Months)
LALPATHLAB (Cmp 1744.60)
LALPATHLAB:Buy above ₹1750, stop ₹1675 target ₹1900 (Multiday)
- Why it’s recommended : Dr. Lal PathLabs Ltd is a leading Indian diagnostic and healthcare service provider. It offers a broad catalogue of over 5,000 diagnostic tests. The prices have been continuously taking support at the Tenkan Sen and Kijun Sen and driving higher. Now with the Relative Strength Index shows that the prices have moved beyond important threshold showing signs of recovery has seen a swift upside indicating some upward trajectory. Look to go long.
- Key metrics:
- P/E Ratio : 57.40,
- 52-week high: ₹1803.60,
- Volume: 385.08K.
- Technical analysis: Support at ₹1600, resistance at ₹1950.
- Risk factors: Primarily pricing pressure, shifting labor codes, competitive intensity, and a heavy reliance on its traditional hub-and-spoke model.
- Buy : above ₹1750
- Stop loss: ₹1675
- Target price: ₹1900 (2 Months)
Stock market recap
Broader indices struggled, with midcaps down 0.4% and smallcaps losing 1%. Realty, PSU banks, autos, and IT led sectoral declines, while pharma and metals provided some relief with modest gains. HCL Tech, Shriram Finance, HDFC Life, Tata Motors, and Interglobe Aviation were among the top losers, while Bharti Airtel, Apollo Hospitals, Sun Pharma, TCS, and Dr Reddy’s stood out as gainers.
Despite the weakness, over 130 stocks hit fresh 52-week highs, including Biocon, Welspun Corp, and Divis Labs. Analysts suggest the Nifty remains resilient above 23,950, with potential upside towards 24,250–24,300, though a break below support could trigger consolidation.
Outlook for trading
From a technical perspective, the Nifty appears to be in a consolidation phase. A look at the charts below we can see that the play of resistance continues to hold its weight over the trends in the last few sessions as we near the very important force that will contain the upmove. As ressitance and support zones have been defined for the month of February. The gap on the charts around the 23850 did create some volatility , however the higher levels remain pressured. Looking at charts the Average Directional Index is witnessing some sideways action as the expiry volatility took its toll. While bias remains positive there are sill some shorts in the system in the wake of the recent decline the possibility of range bound action cannot be ruled out between 23800 and 24300 leading us to play a wide range.
The index has formed a near-term resistance around 24,500, coinciding with the 20-day moving average. Momentum indicators such as RSI have cooled off from overbought territory, suggesting that the recent rally has lost steam and markets may remain range-bound in the short term.
In summary, July 8 once again stalled the three-day rally, with profit booking dominating trade. Traders should watch the 23,800-support zone closely, as a breakdown could accelerate selling, while a rebound above 24,300 may revive bullish momentum.
A look at the Option data reveals that the Max Pain point has now slid to 24050 as market is now indicating that the uptrend is now sealed until 24300 is surpassed. With mixed reactions on the floor the traders are remain supressed as the trends are seen hesitating. As PCR has now slipped to 1.05 with trends remaining mixed indicating a probable OI support is only near 24000 as clarity on the war front remains uncertain. Bank Nifty however will still be a preferred index as the trends in this index seems to be much stronger. As index debates, stock specific action continues.
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.