Stock market recap: Headline indices, Sensex and the Nifty 50, ended in the positive territory for the second consecutive session on Thursday, 30 July, thanks to support from select heavyweights, including Reliance Industries Ltd, HDFC Bank, and Mahindra and Mahindra, while the mid and small-cap segments faltered after the US Fed kept interest rates unchanged but signalled rate hikes could start as early as September.
The Sensex rose 274 points, or 0.35%, to end at 77,928, while the Nifty 50 settled at 24,317, up 67 points, or 0.28%. However, the Nifty Midcap 100 index slipped 0.35%, and the Smallcap 100 index ended 0.56% lower.
The advance-decline ratio tilted in favour of decliners as more than 2,500 stocks declined on the BSE compared to nearly 1,700 advancers.
Two stock recommendations by MarketSmith India:
Buy: The Karnataka Bank Ltd (current price: ₹291)
- Why it’s recommended: Strong retail and SME franchise, healthy asset quality improvement, strong CASA base, growing retail loan portfolio, consistent profitability improvement, healthy capital adequacy, strong presence in South India, expanding digital banking services, stable deposit growth, focus on secured lending, improving operational efficiency, experienced management team, attractive valuation potential, healthy return ratios, and long-term credit growth opportunity.
- Key metrics: P/E: 7.34, 52-week high: ₹292.50, volume: ₹271.47 crore
- Technical analysis: Flat base pattern breakout
- Risk factors: Geographic concentration risk, intense competition from larger banks, interest rate cycle impact, margin pressure from deposit costs, credit cost volatility, asset quality deterioration risk, CASA growth challenges, regulatory compliance risks, economic slowdown affecting borrowers, rising competition for deposits, slower loan growth risk, technology and cybersecurity risks, dependence on regional economy, earnings growth moderation risk, and valuation re-rating may take time.
- Buy: ₹288–292
- Target price: ₹336 in two to three months
- Stop loss: ₹274
Buy: Endurance Technologies Ltd (current price: ₹2,804)
- Why it’s recommended: Leading auto components manufacturer, strong relationships with major OEMs, diversified product portfolio, strong aluminium casting expertise, growing braking systems business, beneficiary of premium vehicle growth, increasing EV component opportunities, strong export presence, healthy operating margins, consistent cash flow generation, strong balance sheet, expansion in European markets, strong R&D capabilities, healthy return ratios, and long-term automotive growth tailwinds.
- Key metrics: P/E: 40.51, 52-week high: ₹3,079.90, volume: ₹57.16 crore
- Technical analysis: Trendline Breakout
- Risk factors: Dependence on auto industry cycle, slowdown in vehicle production, customer concentration risk, raw material price volatility, margin pressure from OEM pricing, intense competition in auto components, EV transition risks, export demand fluctuations, currency fluctuation impact, supply chain disruptions, working capital intensive operations, technology upgradation requirements, economic slowdown affecting demand, dependence on key OEMs, and valuation risk during industry downturns.
- Buy at: ₹2,776–2,818
- Target price: ₹3,150 in two to three months
- Stop loss: ₹2,660
Nifty 50 performance on 30 July
Indian equities ended Thursday's session on a positive note, with Nifty 50 closing at 24,317.15, up 66.95 points (+0.28%), after trading in a broad range of 24,187.10–24,342.95. The benchmark recovered from intraday volatility and finished higher, supported by strength in select Auto, Oil & Gas, Consumer Durables, and IT stocks.
Meanwhile, weakness in Financials and Realty capped broader gains. On the sectoral front, Nifty Auto (+1.63%) emerged as the top performer, followed by Oil & Gas (+0.46%), Consumer Durables (+0.33%), and IT (+0.23%). On the flip side, Realty (-2.06%) witnessed the sharpest decline, with Financial Services, Private Banks, FMCG, and Pharma also ending in the red. Market breadth remained weak despite the benchmark's gains, with the overall advance-decline ratio stood at 1,326 advances against 1,975 declines (118 unchanged), indicating selling pressure in the broader market.
Nifty 50 continued its gradual recovery, closing at 24,317.15 (+0.28%), with the daily candlestick reflecting sustained buying interest despite intraday volatility. Price action remains constructive as the index has been forming a sequence of higher-lows while trading within a rising trend structure.
Momentum indicators are supportive of the bullish bias. The Relative Strength Index (RSI) is at 57.66, comfortably above the neutral 50 mark, indicating improving buying momentum without entering overbought territory. Meanwhile, the MACD is on the verge of a positive crossover, with the histogram flattening and momentum gradually improving, signaling that bearish momentum is fading and bullish participation is strengthening.
The index staged a strong rebound, reclaiming its 21-DMA with the rising trendline, indicating an improvement in near-term market sentiment. However, sustaining these levels will be crucial to reinforce the ongoing recovery. On the downside, a decisive break below 23,600 could trigger renewed selling pressure, exposing the index to 23,300, and a further downside risk toward 23,000.
On the upside, it needs to decisively reclaim and sustain above 24,400 to signal a meaningful revival in bullish momentum. Such a move would also confirm a breakout from the recent consolidation range, strengthening the overall technical structure and increasing the probability of an advance toward 24,500–24,600.
How did Nifty Bank perform?
Nifty Bank opened marginally negative at 57,127.05 and witnessed a volatile trading session. After opening, the index briefly moved higher to touch an intraday high of 57,236.65, where profit booking emerged, dragging it to an intraday low of 56,768.60 before recovering part of the losses to close at 57,147.50, down 58.40 points (-0.10%).
The formation of a long lower shadow on the daily candle suggests buying interest at lower levels, although follow-through buying remained limited. The index continues to consolidate around the confluence of the 50- and 200-DMA, indicating indecision among market participants. The recent price action resembles a tight consolidation phase, suggesting that a decisive breakout on either side could dictate the next directional move.
The RSI eased to 49.44, remaining below the neutral 50 mark and its moving average of 51.48, reflecting weakening momentum and the absence of strong buying conviction. Meanwhile, the MACD remains above the zero line but continues to trade below its signal line, with the negative histogram indicating that bullish momentum is gradually fading.
Although the broader intermediate trend has not turned outright bearish, momentum indicators suggest the index is lacking the strength required for a sustained upside move. A decisive improvement in RSI above 50, accompanied by a bullish MACD crossover, would be needed to revive positive momentum.
Immediate support for Nifty Bank is placed near 56,750–56,550, coinciding with the recent swing low and the 50-DMA, while stronger support is seen around 55,700, near the 100-DMA. On the upside, immediate resistance is located at 57,450–57,550, aligned with the 200-DMA, followed by a stronger hurdle near 57,900–58,000. The index is likely to remain range-bound in the near term as investors await fresh domestic earnings, global central bank cues, and developments in overseas markets.
A sustained move above 57,550 could trigger renewed buying interest and improve market sentiment, while a breakdown below 56,750 may invite further profit-booking and increase downside pressure.
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.