Stock market recap: Stock market benchmarks, the Sensex and the Nifty 50, snapped their four-day winning streak on Tuesday, 7 July, due to profit booking as fresh strikes between the US and Iran drove up crude oil prices, weighing on sentiment.
The Sensex dropped 104 points, or 0.13%, to end at 78,180.72, while the Nifty 50 shed 32 points, or 0.13%, to finish at 24,398.70.
Selling was seen across segments, with the Nifty Midcap 100 and Smallcap 100 indices also ending lower, down 0.30% and 0.55%, respectively.
The overall market capitalization of BSE-listed firms dropped to below ₹480 trillion on Tuesday from ₹482.3 trillion in the previous session.
Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman
DALBHARAT (current market price ₹1,788.80)
- Why it’s recommended: Dalmia Bharat Ltd is a leading Indian cement manufacturer and industrial conglomerate, operating multiple plants across 22 states and offering diverse products including OPC, PPC, PSC, and specialty cement. Slow and steady revival seen in the Real Estate sector is helping this sector too as the beaten down stocks are showing some rally. The formation of a doji with possibility to give a breakout augurs well for the prices in the counter over the next few days. Long body candle with volume are now indicating that prices are gaining some momentum with some strong buying at lower levels. Go Long.
- Key metrics:
- P/E: 682.97,
- 52-week high: ₹1294,
- Volume: 223.86K
- Technical analysis: Support at ₹1,600, resistance at ₹1,950.
- Risk factors: Highly cyclical nature of the cement industry, volatile input costs (power, fuel, logistics), and heightened execution risks.
- Buy: above ₹1,790.
- Stop loss: ₹1,730.
- Target price: ₹1,925 (2 Months)
DABUR (current market price ₹453.50)
- Why it’s recommended: Dabur India Ltd is a leading Indian FMCG (Fast-Moving Consumer Goods) company, blending traditional ancient Ayurveda with modern science. After some sharp decline the prices are seen consolidating at strong support zones around 420-430 zones nearing important value area support. The strong push to the upside is clearly highlighting some upward bias. The steady climb in prices with support from the market showing signs of recovery has seen a swift upside indicating some upward trajectory. One can now look for some trends to carry the prices higher.
- Key metrics:
- P/E Ratio : 53.95,
- 52-week high: ₹577,
- Volume: 1.55M.
- Technical analysis: Support at ₹400, resistance at ₹550.
- Risk factors: Volatile input costs, intense competition from both large FMCG players (like HUL) and D2C brands, and regulatory scrutiny on herbal claims.
- Buy: above ₹455
- Stop loss: ₹430
- Target price: ₹505 (2 Months)
LGEINDIA (current market price ₹1,572.30)
- Why it’s recommended: LG Electronics India Ltd is a premier manufacturer and distributor in the consumer electronics and home appliances industry. After some consolidation the counter has shown some promise from July 2026 as Consumer sector has started reviving. The Relative Strength Index shows that the prices are reviving from neutral zone with support from the market showing signs of recovery has seen a swift upside indicating some upward trajectory. One can now look for some trends to carry the prices higher.
- Key metrics:
- P/E Ratio : 63.33,
- 52-week high: ₹1,749,
- Volume: 523.59K.
- Technical analysis: Support at ₹1,450, resistance at ₹1,800.
- Risk factors: Heavy reliance on its South Korean parent for technology, significant unaccrued contingent liabilities related to royalty obligations, and vulnerability to foreign exchange rate fluctuations.
- Buy: above ₹1,575
- Stop loss: ₹1,500
- Target price: ₹1,750 (2 Months)
How the stock market performed on Tuesday
On 7 July, Indian equity benchmarks ended lower, breaking a four-session rally as profit-taking outweighed gains in IT stocks. The Nifty 50 slipped 0.13% to close at 24,398.70, while the Sensex fell 0.13% to 78,180.72, retreating from 10-week highs touched in the previous session.
Despite a steady progress in the monsoon, lower crude oil prices, and renewed foreign inflows, investors turned cautious ahead of the earnings season.
The IT index rose 2.4%, extending its July rebound to 6.2%, with Tata Consultancy Services set to kick off quarterly results later in the week. Reliance Industries and ICICI Bank dragged the benchmarks, while Trent plunged over 12% on weaker-than-expected revenue growth. Broader indices also softened, with small-caps down 0.6% and mid-caps 0.3%. Titan gained 2.7% after strong consumer business growth, but overall, twelve of sixteen sectors closed in the red, reflecting consolidation and profit-booking at higher levels.
Outlook for trading
Markets have managed to hold on and the rebound seen over the last few days continued to display a sense of hope as 24,000 as a key level that continues to be held. Unlike last week, this week witnessed some solidarity from all the broader indices. While a revival is seen we need to consider that we are still not out of woods and this could be an intermittent rally. The triggers that we can expect in the coming week would be a mix of domestic and global that could impact the sentiment.
Last week, movement was largely driven by some shorts with no clarity at the global level as markets were shut. Volatility shall continue to be part of the overall environment and will need some time to stabilize.
Globally, the Federal Reserve Policy measures are now coming into play, even as broader US price pressures appear modest for now. That in turn has stoked anxiety that many central banks will start to tighten policy and raise borrowing costs, hurting corporate earnings and clouding the outlook for what had been expected to be another solid year of global economic growth.
The daily chart shown above clearly shows that the ranging action is now given away and we could gather some news-flow continues to be in play. We will need more momentum to head higher. While we note that the gap range is broken, we still need more momentum to drive higher as the display of bullishness seen on Wednesday was primarily news-driven short covering rather than genuine buying.
Looking at the option build-up at the time of expiry, we noted that the July series has begun with option concentration at 24,000. The series began with a positive bias in Nifty and Bank Nifty that had started retiring the bearish outlook. With key resistance zones that we have been mentioning around 24,500 being reached we could now see the unlocking of the new resistance of 248,00 in the next few days. Every pullback should be considered as a buying opportunity.
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.