Stock market update: Indian equity benchmarks ended lower on Tuesday, snapping a four-session winning streak as late-session profit booking erased early gains. Investor sentiment weakened amid escalating geopolitical tensions after reports of Iranian missile strikes on commercial vessels in the Strait of Hormuz heightened concerns over a potential US response, driving Brent crude prices more than 1% higher to $73 per barrel.

Against this backdrop, the Sensex declined 104.35 points (0.13%) to close at 78,180.72, while the Nifty 50 fell 31.65 points (0.13%) to settle at 24,398.70. Market breadth remained firmly negative, with 1,191 stocks advancing against 2,084 declining, reflecting broad-based selling across the broader market. The Nifty Midcap 100 and the Nifty Smallcap 100 also ended lower, losing 0.30% and 0.55%, respectively.

Sectoral performance was mixed, with the Nifty IT (+2.43%) emerging as the top performer, driven by strong gains in heavyweight technology stocks such as Infosys and Tech Mahindra, supported by positive global cues. The Nifty Consumer Durables advanced 0.89%, aided by encouraging Q1 business updates from Titan. In contrast, the Nifty Realty and the Nifty Metal were the worst-performing sectors, declining 1.58% and 1.10%, respectively, as investors booked profits in rate-sensitive and cyclical stocks.

Two stock recommendations by MarketSmith India:

Buy: Equitas Small Finance Bank Ltd (current price: ₹79)

Why it’s recommended: Strong retail-focused lending model, diversified loan portfolio, growing secured loan mix, strong deposit franchise growth, improving CASA ratio, healthy loan growth potential, expanding branch network, focus on financial inclusion, improving asset quality trends, strong presence in underserved markets, digital banking initiatives, healthy capital adequacy, improving operational efficiency, scalable business model, and attractive valuation potential.

Key metrics: P/E: 86.03 | 52-week high: ₹80.14 | Volume: ₹55.69 crore

Technical analysis: Cup base breakout

Risk factors: Asset quality deterioration risk, high retail credit exposure, margin pressure from deposit costs, interest rate cycle risk, intense competition from banks and NBFCs, regulatory risks for small finance banks, slower CASA growth, credit cost volatility, economic slowdown affecting collections, geographic concentration risk, liquidity and funding risks, technology and cybersecurity risks, dependence on rural and MSME segments, earnings volatility during weak credit cycles, and valuation re-rating may take time.

Buy: ₹78-79

Target price: ₹88 in two to three months

Stop loss: ₹75

Buy: Titan Company Ltd (current price: ₹4,600)

Why it’s recommended: Strong leadership in jewellery market, trusted and premium brand portfolio, diversified lifestyle business, strong retail network, beneficiary of rising disposable incomes, healthy same-store sales growth, strong cash flow generation, market share gains in jewellery, expansion into new categories, strong digital and omnichannel presence, pricing power through brand strength, healthy return ratios, long-term consumption growth story, strong execution track record, and consistent earnings growth.

Key metrics: P/E: 77.33 | 52-week high: ₹4,655.90 | Volume: ₹1,515.14 crore

Technical analysis: Cup-with-handle base breakout

Risk factors: Dependence on consumer spending, gold price volatility, margin pressure from input costs, intense competition in jewellery, regulatory changes in gold trade, slowdown in discretionary demand, inventory management risks, expansion execution risks, rising operating expenses, dependence on festive and wedding demand, economic slowdown affecting sales, supply chain disruptions, valuation risk due to premium multiples, changing consumer preferences, and earnings growth moderation risk.

Buy at: ₹4,554-4,623

Target price: ₹5,800 in two to three months

Stop loss: ₹4,200

Nifty 50: How the benchmark index performed on 7 July

Indian equity markets ended marginally lower, with late-session selling dragging benchmarks into negative territory. The Nifty 50 declined 31.65 points (0.13%) to close at 24,398.70, after trading in a range of 24,348.95-24,530.90, while the broader market remained under pressure. Market breadth was distinctly weak, with the advance-decline ratio favouring declines with 1,191 stocks advancing against 2,084 stocks declining, and 109 remaining unchanged, indicating broad-based profit-booking beyond the frontline indices.

Sectoral performance was mixed, with the Nifty IT (+2.43%) emerging as the standout performer, supported by buying in technology stocks. On the other hand, Realty (-1.58%), Metal (-1.10%), Healthcare (-0.83%), Pharma (-0.73%), and Media (-0.74%) led the decline. Defensive pockets such as FMCG (+0.06%) and Consumer Durables (+0.89%) also ended in positive territory, helping limit the benchmark's downside.

The Nifty 50 continues to exhibit a constructive technical structure, closing at 24,400 while extending its sequence of higher lows from the June bottom. Price action remains positive, with the index sustaining above its short-term moving averages and closing above the 100-DMA, indicating that buying interest is gradually strengthening.

The Relative Strength Index (RSI) climbed to around 63, remaining above its signal line and above the neutral 50 mark. This indicates improving bullish momentum without entering overbought territory, leaving room for further upside if buying interest continues. The MACD remains in positive territory, with the MACD line holding above the signal line and the histogram continuing to print positive bars. This reflects strengthening upside momentum and confirms the improvement in the medium-term trend.

The index continues to encounter strong resistance in the 24,500-24,600 range. A decisive breakout above this range could strengthen bullish momentum and pave the way for an advance towards 24,650-24,800, which marks the next significant resistance area. On the downside, immediate support is placed at 24,200. A sustained close below this level could trigger further profit booking, potentially dragging the index towards 24,000, with 23,800 emerging as the next key support level.

How did the Nifty Bank perform yesterday?

The Nifty Bank entered a phase of strategic consolidation on Tuesday, macroeconomically weighed down by escalating US-Iran geopolitical tensions and rising Brent crude prices. Following Monday's robust 0.61% rally, the index took a breather, shedding 90.80 points, or 0.16%, to settle at 58,200.70. This marginal retreat reflects a classic “cooling-off” period as market participants digest recent gains ahead of the formal Q1 earnings kick-off.

Stock performance within the sector was highly polarized. Private banking heavyweight HDFC Bank maintained notable resilience, continuing to benefit from positive quarterly business updates. However, this strength was entirely offset by minor profit-booking among other private-sector peers and persistent sluggishness among public-sector lenders, with State Bank of India acting as a key intraday headwind.

The Nifty Bank continues to exhibit a neutral-to-positive technical structure, with the index trading in a broad sideways range over the past 16 trading sessions, reflecting a phase of consolidation following the sharp recovery from its June lows. The Relative Strength Index (RSI) is hovering around 63, remaining above the neutral 50 level and its signal line, indicating healthy underlying momentum without indicating overbought conditions. The MACD remains in positive territory, with the MACD line holding above the signal line, while the histogram continues to print positive bars, albeit with a gradual loss in momentum.

On the technical front, immediate support is seen around 57,850, followed by 57,200-57,000, where the 200-DMA is placed. A decisive breach below these levels could invite fresh selling pressure. On the upside, immediate resistance is placed near 58,400, while a sustained breakout above this hurdle could open the door towards 58,800-59,000 in the coming sessions. It continues to trade above its 10-, 21-, 50-, and 100-DMA, reflecting a favourable medium-term structure.

MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. It offers tools and resources to help investors make informed decisions based on the CAN SLIM methodology, founded by legendary investor William J. O'Neil. You can access a 10-day free trial by registering on its website.

Trade name: William O’Neil India Pvt. Ltd.

Sebi Registration No.: INH000015543

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.

Stock market update: Indian equity benchmarks ended lower on Tuesday, snapping a four-session winning streak as late-session profit booking erased early gains. Investor sentiment weakened amid escalating geopolitical tensions after reports of Iranian missile strikes on commercial vessels in the Strait of Hormuz heightened concerns over a potential US response, driving Brent crude prices more than 1% higher to $73 per barrel.

Against this backdrop, the Sensex declined 104.35 points (0.13%) to close at 78,180.72, while the Nifty 50 fell 31.65 points (0.13%) to settle at 24,398.70. Market breadth remained firmly negative, with 1,191 stocks advancing against 2,084 declining, reflecting broad-based selling across the broader market. The Nifty Midcap 100 and the Nifty Smallcap 100 also ended lower, losing 0.30% and 0.55%, respectively.

Sectoral performance was mixed, with the Nifty IT (+2.43%) emerging as the top performer, driven by strong gains in heavyweight technology stocks such as Infosys and Tech Mahindra, supported by positive global cues. The Nifty Consumer Durables advanced 0.89%, aided by encouraging Q1 business updates from Titan. In contrast, the Nifty Realty and the Nifty Metal were the worst-performing sectors, declining 1.58% and 1.10%, respectively, as investors booked profits in rate-sensitive and cyclical stocks.

Two stock recommendations by MarketSmith India:

Buy: Equitas Small Finance Bank Ltd (current price: ₹79)

Why it’s recommended: Strong retail-focused lending model, diversified loan portfolio, growing secured loan mix, strong deposit franchise growth, improving CASA ratio, healthy loan growth potential, expanding branch network, focus on financial inclusion, improving asset quality trends, strong presence in underserved markets, digital banking initiatives, healthy capital adequacy, improving operational efficiency, scalable business model, and attractive valuation potential.

Key metrics: P/E: 86.03 | 52-week high: ₹80.14 | Volume: ₹55.69 crore

Technical analysis: Cup base breakout

Risk factors: Asset quality deterioration risk, high retail credit exposure, margin pressure from deposit costs, interest rate cycle risk, intense competition from banks and NBFCs, regulatory risks for small finance banks, slower CASA growth, credit cost volatility, economic slowdown affecting collections, geographic concentration risk, liquidity and funding risks, technology and cybersecurity risks, dependence on rural and MSME segments, earnings volatility during weak credit cycles, and valuation re-rating may take time.

Buy: ₹78-79

Target price: ₹88 in two to three months

Stop loss: ₹75

Buy: Titan Company Ltd (current price: ₹4,600)

Why it’s recommended: Strong leadership in jewellery market, trusted and premium brand portfolio, diversified lifestyle business, strong retail network, beneficiary of rising disposable incomes, healthy same-store sales growth, strong cash flow generation, market share gains in jewellery, expansion into new categories, strong digital and omnichannel presence, pricing power through brand strength, healthy return ratios, long-term consumption growth story, strong execution track record, and consistent earnings growth.

Key metrics: P/E: 77.33 | 52-week high: ₹4,655.90 | Volume: ₹1,515.14 crore

Technical analysis: Cup-with-handle base breakout

Risk factors: Dependence on consumer spending, gold price volatility, margin pressure from input costs, intense competition in jewellery, regulatory changes in gold trade, slowdown in discretionary demand, inventory management risks, expansion execution risks, rising operating expenses, dependence on festive and wedding demand, economic slowdown affecting sales, supply chain disruptions, valuation risk due to premium multiples, changing consumer preferences, and earnings growth moderation risk.

Buy at: ₹4,554-4,623

Target price: ₹5,800 in two to three months

Stop loss: ₹4,200

Nifty 50: How the benchmark index performed on 7 July

Indian equity markets ended marginally lower, with late-session selling dragging benchmarks into negative territory. The Nifty 50 declined 31.65 points (0.13%) to close at 24,398.70, after trading in a range of 24,348.95-24,530.90, while the broader market remained under pressure. Market breadth was distinctly weak, with the advance-decline ratio favouring declines with 1,191 stocks advancing against 2,084 stocks declining, and 109 remaining unchanged, indicating broad-based profit-booking beyond the frontline indices.

Sectoral performance was mixed, with the Nifty IT (+2.43%) emerging as the standout performer, supported by buying in technology stocks. On the other hand, Realty (-1.58%), Metal (-1.10%), Healthcare (-0.83%), Pharma (-0.73%), and Media (-0.74%) led the decline. Defensive pockets such as FMCG (+0.06%) and Consumer Durables (+0.89%) also ended in positive territory, helping limit the benchmark's downside.

The Nifty 50 continues to exhibit a constructive technical structure, closing at 24,400 while extending its sequence of higher lows from the June bottom. Price action remains positive, with the index sustaining above its short-term moving averages and closing above the 100-DMA, indicating that buying interest is gradually strengthening.

The Relative Strength Index (RSI) climbed to around 63, remaining above its signal line and above the neutral 50 mark. This indicates improving bullish momentum without entering overbought territory, leaving room for further upside if buying interest continues. The MACD remains in positive territory, with the MACD line holding above the signal line and the histogram continuing to print positive bars. This reflects strengthening upside momentum and confirms the improvement in the medium-term trend.

The index continues to encounter strong resistance in the 24,500-24,600 range. A decisive breakout above this range could strengthen bullish momentum and pave the way for an advance towards 24,650-24,800, which marks the next significant resistance area. On the downside, immediate support is placed at 24,200. A sustained close below this level could trigger further profit booking, potentially dragging the index towards 24,000, with 23,800 emerging as the next key support level.

How did the Nifty Bank perform yesterday?

The Nifty Bank entered a phase of strategic consolidation on Tuesday, macroeconomically weighed down by escalating US-Iran geopolitical tensions and rising Brent crude prices. Following Monday's robust 0.61% rally, the index took a breather, shedding 90.80 points, or 0.16%, to settle at 58,200.70. This marginal retreat reflects a classic “cooling-off” period as market participants digest recent gains ahead of the formal Q1 earnings kick-off.

Stock performance within the sector was highly polarized. Private banking heavyweight HDFC Bank maintained notable resilience, continuing to benefit from positive quarterly business updates. However, this strength was entirely offset by minor profit-booking among other private-sector peers and persistent sluggishness among public-sector lenders, with State Bank of India acting as a key intraday headwind.

The Nifty Bank continues to exhibit a neutral-to-positive technical structure, with the index trading in a broad sideways range over the past 16 trading sessions, reflecting a phase of consolidation following the sharp recovery from its June lows. The Relative Strength Index (RSI) is hovering around 63, remaining above the neutral 50 level and its signal line, indicating healthy underlying momentum without indicating overbought conditions. The MACD remains in positive territory, with the MACD line holding above the signal line, while the histogram continues to print positive bars, albeit with a gradual loss in momentum.

On the technical front, immediate support is seen around 57,850, followed by 57,200-57,000, where the 200-DMA is placed. A decisive breach below these levels could invite fresh selling pressure. On the upside, immediate resistance is placed near 58,400, while a sustained breakout above this hurdle could open the door towards 58,800-59,000 in the coming sessions. It continues to trade above its 10-, 21-, 50-, and 100-DMA, reflecting a favourable medium-term structure.

MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. It offers tools and resources to help investors make informed decisions based on the CAN SLIM methodology, founded by legendary investor William J. O'Neil. You can access a 10-day free trial by registering on its website.

Trade name: William O’Neil India Pvt. Ltd.

Sebi Registration No.: INH000015543

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.