Stock market recap: Indian equities enjoyed healthy across-the-board buying on Monday, 27 July, with the benchmarks jumping 1% each, snapping their five-day losing streak.
The 30-share pack Sensex jumped 776 points, or 1.02%, to end at 76,835.78, while the Nifty 50 ended 229 points higher, or 0.96%, at 23,995.95.
The Nifty Midcap 100 index climbed 1.11%, and the Smallcap 100 index jumped 1.31%.
The overall market capitalization of BSE-listed firms rose to nearly ₹481 trillion from nearly ₹476 trillion in the previous session.
Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman
SAREGAMA (current market price ₹514.85 - Buy above ₹518, stop loss ₹490, target price ₹575 (Multiday)
- Why it’s recommended: Saregama India Ltd is India’s oldest music label and a major entertainment company diversified across music, film, television, and digital content. After a long period of consolidation, a strong support from the Tenkan Sen and Kijun Sen is signalling signs of a revival in consumables sector. With a strong thrust above there recent value resistance around 500 could carry the prices higher. Consider going long.
- Key metrics:
- P/E: 46.18,
- 52-week high: ₹520,
- Volume: 625.34K
- Technical analysis: Support at ₹450, resistance at ₹750.
- Risk factors: Content Cost Inflation, Execution Risk in Video & Film and AI & Technological Disruption.
- Buy : above ₹518.
- Stop loss: ₹490.
- Target price: ₹575 (2 Months)
LALPATHLAB (current market price ₹1,827.20 - Buy above ₹1,830, stop loss ₹1,750, target price ₹1,990 (Multiday)
- Why it’s recommended : Dr Lal PathLabs Ltd is a leading Indian provider of diagnostic and healthcare tests, offering pathology, radiology, and preventive health packages. The stock has been performing well after some sharp profit booking in June the rebound with some supports offered by the Tenkan Sen and Kijun Sen has seen a sharp upmove unfolding. The robust Q1 has showing a strong surge in Relative Strength Index and a possible upmove and is now moving higher. Consider going long.
- Key metrics:
- P/E Ratio : 56.18,
- 52-week high: ₹1803.60,
- Volume: 2.11M
- Technical analysis: Support at ₹1,700, resistance at ₹2,000.
- Risk factors: Geographical Concentration, Increasing Operating Costs and Biomedical & Waste Management Laws.
- Buy : above ₹1830
- Stop loss: ₹1750
- Target price: ₹1990 (2 Months)
NAM-INDIA (current market price ₹1,153.90 - Buy above ₹1,155, stop loss ₹1,120, target price ₹1,255 (Multiday))
- Why it’s recommended: Nippon Life India Asset Management Lid (NAM India) is a major public asset management company that manages theNippon India Mutual Fund, provides portfolio management. The stock has been performing well after some sharp profit booking the prices reached oversold position and took support of the Kumo cloud to demonstrate a spirited rise to start the week. With a long body candle in play we can see that the trends are seen reviving. Go Long.
- Key metrics:
- P/E Ratio : 45.94,
- 52-week high: ₹1233,
- Volume: 1.16M
- Technical analysis: Support at ₹1,100, resistance at ₹1,300.
- Risk factors: Equity market dependency, structural yield compression, and strict regulatory changes.
- Buy: above ₹1,155
- Stop loss: ₹1,120
- Target price: ₹1,255 (2 Months)
How the stock market performed on 27 July
Indian equities began the week on a strong note on Monday, with benchmark indices posting broad-based gains as easing crude oil prices, strength in financial stocks and a series of company-specific triggers lifted sentiment.
The Sensex rose 776 points to close at 76,836, while the Nifty 50 gained 229 points to finish at 23,996, briefly reclaiming the 24,000 mark during the session. Market breadth remained firmly positive, with advancing stocks outnumbering decliners by roughly two to one, signalling broad participation in the rally.
Financials, led by non-bank lenders, drove much of the advance, aided by a stronger rupee and softer crude prices. Auto stocks also gained after crude fell about 10%, easing concerns over input costs. Lower oil prices boosted crude-sensitive sectors, with oil marketing companies and airlines advancing, while upstream oil producers underperformed.
Stock-specific developments added to the momentum. KFin Technologies jumped more than 10% after upbeat FY27 commentary, while Container Corp. of India (Concor) gained 7% after doubling its volume guidance. IDFC First Bank and AU Small Finance Bank rose 5-6% following their quarterly results, and IT stocks extended recent gains, led by Oracle Financial Services Software and Coforge.
Losses were limited. Exide Industries and Nuvama Wealth declined ahead of their exit from the F&O segment, while Bank of India edged lower after its earnings. Among Sensex constituents, Infosys, Bajaj Finance, Asian Paints, InterGlobe Aviation and Max Healthcare were the top gainers, whereas ONGC, HDFC Bank, Cipla and Axis Bank finished lower.
Overall, lower crude prices, strength in financials and a clutch of positive corporate triggers combined to propel the market higher.
Outlook for trading
The run-up to the August series has tested investors' conviction. Large swings and repeated gap openings have kept traders questioning whether the market has enough momentum to extend its rally. Yet, despite bouts of volatility that have periodically dented sentiment, the underlying bullish bias remains intact. Price action continues to be choppy, offering little decisive direction, suggesting the market is not yet out of the woods.
Even so, several technical signals are beginning to favour the bulls. Participation in the Nifty Midcap and Smallcap segments remains healthy, supporting broader market strength. Sustained market breadth will be critical, however; any deterioration could undermine the Nifty's attempt to resume its upward move.
Another gap-down opening on Monday unsettled sentiment and once again challenged the market's push towards fresh highs. While intermittent bursts of buying have emerged, reclaiming new highs is likely to remain the key hurdle in the week ahead. The market tested important support levels during the week's decline before recovering strongly into the close, improving the near-term technical picture. That said, caution remains warranted, particularly as investors are quick to call a market top whenever prices rally.
We continue to view market dips as buying opportunities and retain a constructive outlook. The gap area around 23,800 now appears to have emerged as an important support zone for any near-term pullback.
The past two sessions have reinforced that view, with declines attracting steady buying interest and triggering sharp recoveries. Going into the coming sessions, the technical setup for long positions has become clearer, with 23,500 serving as the immediate support level to watch. A sustained hold above that level would keep the broader bullish structure intact.
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.