The sluggish pace of the market recovery is testing investors' patience. While the prevailing downtrend keeps overall gains capped, the underlying hope for a rebound from these lower levels remains intact—the momentum is simply taking longer than expected to build.
Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman
SIGNATURE (current price: ₹788.75)
Buy above ₹790, stop ₹745; target ₹890 (multiday)
- Why it’s recommended: Gurugram-based developer Signature Global—which spans affordable, mid-segment, and premium housing across Northern India—is benefiting from the real estate sector's recent revival. As beaten-down property stocks begin to rally, this counter is flashing positive signals. A long-bodied candle backed by strong trading volume indicates that the stock is gaining upward momentum following aggressive buying at lower levels. Expect a slow and steady upward move over the next few days. Go long.
- Key metrics:
- P/E: 682.97,
- 52-week high: ₹1294,
- Volume: 842.39K
- Technical analysis: Support at ₹700, resistance at ₹950.
- Risk factors: Vulnerability to government subsidy changes, volatility in global raw material prices, and agro-climatic disruptions like poor monsoons.
- Buy: above ₹790.
- Stop loss: ₹745.
- Target price: ₹890 (2 months)
MANAPPURAM (current price: ₹346.10)
Buy above ₹347, stop ₹333, target ₹377 (multiday)
- Why it’s recommended: Manappuram Finance Ltd.—a leading gold-loan-focused NBFC headquartered in Kerala—is flashing strong bullish signals. The stock has broken past a crucial resistance zone around the ₹330 level, highlighting strong upward bias. Backed by a broader market recovery, this steady climb has accelerated into a swift breakout, indicating a robust upward trajectory. Traders can look to ride this building momentum for higher targets.
- Key metrics:
- P/E Ratio : 21.34,
- 52-week high: ₹335.35,
- Volume: 10.94M.
- Technical analysis: Support at ₹325, resistance at ₹450.
- Risk factors: Underlying gold price volatility and regulatory intervention. These challenges are compounded by asset quality stress across its diversified non-gold portfolios and intense cost-of-fund pressures.
- Buy: above ₹347
- Stop loss: ₹333
- Target price: ₹377 (2 Months)
EIHOTEL (current price: ₹334.40)
Buy above ₹337, stop ₹322, target ₹375 (multiday)
- Why it’s recommended: EIH Ltd, the flagship company of the luxury hospitality major Oberoi Group, is showing strong technical promise. Following a period of consolidation, the counter has rebounded smartly from its June 2026 lows, tracking a broader revival across the hospitality sector. The stock has formed a classic rounding bottom pattern and entered a swift upward trajectory, well-supported by a recovering market. Traders can look to position for a continued move higher as this positive momentum builds.
- Key metrics:
- P/E Ratio: 38.83,
- 52-week high: ₹434.80,
- Volume: 265.50K.
- Technical analysis: Support at ₹300, resistance at ₹600.
- Risk factors: Recent governance controversies, high exposure to unsecured loans, and vulnerability to central bank regulations.
- Buy : above ₹337
- Stop loss: ₹322
- Target price: ₹375 (2 months)
Stock market update
Indian equities extended their winning run for the fourth straight session on Monday, July 6, 2026, buoyed by broad-based buying across sectors. Optimism around improving monsoon prospects, renewed foreign inflows, easing geopolitical tensions, and softer crude prices kept sentiment upbeat. After a firm start, indices held gains through the day, with late buying pushing them near session highs. The Sensex closed 521 points higher at 78,285.07, while the Nifty added 159 points to finish at 24,430.35. Midcaps rose 0.4% and smallcaps gained 0.7%, in line with benchmarks.
Realty led sectoral gains, up 1.8%, followed by consumer durables, autos, and oil & gas. HDFC Bank, Hindalco, ONGC, Bajaj Auto and M&M were top gainers, while Kotak Mahindra Bank, TCS and Coal India slipped. Nearly 200 stocks hit fresh 52-week highs, including Adani Energy, Oberoi Realty and AU Small Finance. Meanwhile, the rupee weakened, settling 18 paise lower at 95.40 against the U.S. dollar.
Outlook for trading
Bulls are hard at work in the current market, using every deep correction as an opportunity to resurface. However, their persistent inability to sustain trends at higher levels continues to act as a drag. While extended volatility and erratic gap openings have temporarily dented trader enthusiasm, selective pockets of sector-specific bullishness continue to spring up and draw attention.
On the daily charts, Nifty's previously discussed bearish divergence continues to curtail aggregate price action. Last week's strong upward drive failed to hold, and the subsequent sharp decline caught everyone by surprise. Fortunately, the anticipated move below 23,800 was quickly nullified, allowing a gradual bullish recovery to filter back into the market. Over the last few days, we have witnessed steady supply at higher levels, making the 24,100–24,150 zone crucial immediate support that must hold. Because the overall sentiment leans positive, the market has turned into a "buy on dips, sell on rallies" playground, allowing participants to open up to momentum investing alongside core trading.
This shifting environment is characterized by periodic upward gaps on the daily charts, a clear sign that fence-sitters are jumping onto the bandwagon late. This raises the question: is a continued advance possible? The answer is yes. The broader market setup shows that equities are reacting well to a string of positive macroeconomic data and the government's reinforced agenda to build a powerful nation.
However, achieving this will require navigating a very challenging July series, which has inherited massive volatility from a June expiry that left traders bruised and battered. Despite the bleeding, hope for a structural resurgence has been triggered. After surviving those lower levels, the newly formed gap at 24,150 stands as our revised support line.
As the corporate earnings season kicks off, the market is still actively fighting localized pessimism. Constant turbulence has made it difficult for participants to maintain a stable, long-term outlook, making uncertainty the underlying theme of this script. Despite the best efforts to stage a massive revival, consistent selling pressure at higher levels will likely keep a lid on runaway recoveries. For now, while the Indian economic hemisphere showcases solid macro solidarity, the market's internal turbulence continues to cause a fair share of trader misery.
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.