Stock market recap: Indian equities ended marginally higher on Wednesday, 15 July, with benchmark indices Sensex and Nifty 50 posting modest gains, while the mid- and small-cap indices gaining up to half a per cent amid escalating US-Iran tensions and rising crude oil prices.
The 30-share pack rose 130 points, or 0.17%, to close at 77,185.43, while the Nifty 50 ended at 24,078.50, rising 26 points, or 0.11%.
The Nifty Midcap 100 index ended 0.28% higher, while the Nifty Smallcap 100 index rose by 0.67%.
Two stock recommendations by MarketSmith India:
Buy: Bandhan Bank Ltd (current price: ₹216)
- Why it’s recommended: Strong retail banking franchise, leading microfinance expertise, growing retail loan diversification, expanding deposit franchise, improving CASA base, strong branch network, healthy capital adequacy, focus on asset quality improvement, diversified lending portfolio, digital banking expansion, experienced management team, strong financial inclusion presence, growth in secured lending, improving risk management framework, and long-term credit growth opportunity.
- Key metrics: P/E: 27.37, 52-week high: ₹220.76, volume: ₹516.14 crore
- Technical analysis: Flat base breakout
- Risk factors: High exposure to microfinance segment, asset quality deterioration risk, elevated credit costs, regional concentration risk, regulatory changes affecting microfinance, pressure on Net Interest Margins (NIM), higher provisioning requirements, intense competition in retail banking, collection efficiency risks, economic slowdown impacting borrowers, dependence on rural and semi-urban markets, slower loan growth during stress periods, earnings volatility, execution risk in business diversification, and valuation recovery may take time.
- Buy: ₹214–217
- Target price: ₹245 in two to three months
- Stop loss: ₹206
Buy: EPACK Durable Ltd (current price: ₹247)
- Why it’s recommended: Leading RAC OEM/ODM manufacturer, strong customer relationships with major brands, diversified product portfolio, capacity expansion across product lines, beneficiary of rising AC penetration, growing electronics manufacturing opportunity, strong R&D and design capabilities, backward integration into key components, expanding exports, asset-light customer acquisition model, government support through PLI schemes, growth in small domestic appliances, long-term outsourcing trend benefits, increasing manufacturing scale, and experienced management team.
- Key metrics: P/E: 235.26, 52-week high: ₹414.90, volume: ₹48.95 crore
- Technical analysis: Trendline Breakout
- Risk factors: High dependence on RAC demand, seasonal business fluctuations, customer concentration risk, thin operating margins, raw material cost volatility, intense OEM competition, working capital-intensive operations, foreign exchange fluctuation risk, execution risk in capacity expansion, commodity price inflation, dependence on consumer spending, inventory management risk, high capital expenditure requirements, technology obsolescence risk, and margin pressure during weak demand cycles.
- Buy at: ₹245–248
- Target price: ₹280 in two to three months
- Stop loss: ₹232
Nifty 50 performance on 15 July
Indian equity markets ended marginally higher after a volatile trading session, with Nifty 50 closing at 24,078.50, up 26.45 points (+0.11%). Meanwhile, Sensex also finished in positive territory after giving up a large part of its early gains. Nifty traded in a wide intraday range of 24,010.55–24,220.35, reflecting profit booking in the second half after a strong opening.
Early optimism was driven by easing global concerns, a firmer rupee and buying in financial stocks, though gains moderated later amid caution over geopolitical developments and ongoing Q1 earnings. Market breadth remained constructive, with 1,847 stocks advancing, 1,445 declining, and 111 remaining unchanged, indicating broader participation despite the benchmark's modest move. On the sectoral front, PSU Banks (+0.95%), Consumer Durables (+0.73%), Oil & Gas (+0.69%), Financial Services (+0.63%), and Healthcare (+0.40%) outperformed, while Metal (-1.11%), IT (-0.67%), FMCG (-0.49%), Media (-0.46%), and Realty (-0.38%) ended lower.
Nifty 50 ended largely flat and formed a Doji candlestick on the daily chart, reflecting indecision between buyers and sellers after a volatile session. The Relative Strength Index (RSI) is positioned at 52.3, remaining above the neutral 50 mark but easing from recent highs, indicating that bullish momentum has moderated while still favoring the positive side. Meanwhile, the MACD remains in positive territory with the MACD line above the signal line, although the narrowing histogram suggests that upside momentum is gradually weakening.
The index is currently trading near a crucial support zone of 23,800, which will be closely monitored in the coming sessions. A decisive break down below this level could intensify selling pressure and open the door for a decline toward 23,600–23,500. On the upside, 24,300 remains the immediate and critical resistance level. A sustained move above this hurdle would be required to improve near-term sentiment and signal a recovery in market momentum. Until either of these levels is decisively breached, the index is likely to remain range-bound with a cautious bias, as investors await fresh triggers for the next directional move.
How did Nifty Bank perform?
Nifty Bank opened on a positive note at 57,643.75 and witnessed steady buying interest during the session. After slipping to an intraday low of 57,545.20, the index attracted fresh demand from lower levels and gradually recovered, eventually closing near the day's high at 57,757.85, up 295.55 points (+0.51%). During the session, it touched an intraday high of 58,148.80, indicating that buyers remained active despite intermittent volatility.
The index managed to reclaim the 21 DMA while trading above the 50-, 100-DMA, and the 200-DMA, reflecting a constructive intermediate-term trend. Technically, the recent price action resembles a consolidation above key moving averages, suggesting that market participants continue to accumulate at lower levels while awaiting a decisive breakout above the recent trading range.
The RSI is placed at 55.05, comfortably above the neutral 50 mark, indicating that positive momentum remains intact despite some moderation from recent highs. The MACD continues to remain above the zero line. Although it has generated a negative crossover, reflecting a temporary slowdown in bullish momentum rather than a reversal of the prevailing trend. If both indicators hold above their respective equilibrium levels, the broader technical setup continues to favour the bulls.
Momentum indicators suggest that the ongoing consolidation is healthy in nature, allowing overbought conditions to ease before the next directional move. Sustained buying interest could quickly restore stronger upside momentum.
On the downside, immediate support is placed around 57,300–57,250, followed by the 100-DMA around 56,107 if selling pressure intensifies. On the upside, immediate resistance is seen near 58,150, while a decisive breakout above this zone could pave the way toward 58,500–58,800 over the coming sessions.
The technical structure remains constructive as the index continues to hold above its major moving averages, reflecting resilient institutional participation. However, traders are likely to remain focused on the ongoing earnings season, global market cues, and foreign fund flows. A sustained move above the recent swing high could strengthen bullish momentum, while failure to hold above key support levels may extend the current consolidation phase.
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.
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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.