Frontline indices extended their winning streak into a fourth consecutive session, ending firmly in positive territory. Nifty 50 advanced 0.66% to close at 24,430.35, gaining 159.50 points, while BSE Sensex closed at 78,285.07, up 521.16 points or 0.67%.
In the broader markets, small-cap and mid-cap indices shadowed this optimism, posting decent gains. Sectoral performance was highlighted by strong momentum in Nifty Realty (+1.81%), Consumer Durables (+1.48%), and Nifty Auto (+1.36%).
Key financial heavyweights, particularly HDFC Bank, spearheaded the index's upward movement following healthy provisional Q1 business updates. On the other hand, Nifty Media (-0.95%) and Nifty PSU Bank (-0.88%) faced mild selling pressure, with Kotak Mahindra Bank emerging as a top laggard.
Despite the benchmark rally, market breadth tilted toward caution, with the advance-decline ratio at 1,578 stocks advancing against 1,769 stocks declining, and 115 remaining unchanged.
Two stock recommendations by MarketSmith India:
Buy: Veranda Learning Solutions Limited (current price: ₹259)
- Why it’s recommended: Strong presence in education technology, diversified learning platform portfolio, acquisition-led growth strategy, growing demand for online education, hybrid online-offline learning model, expansion into test preparation, strong brand portfolio, scalable business model, beneficiary of digital education adoption, cross-selling opportunities across platforms, growing professional education segment, long-term education sector tailwinds, technology-driven learning solutions, expansion into new geographies, and large addressable market.
- Key metrics: P/E: 45.43, 52-week high: ₹272.50, volume: ₹51.15 crore
- Technical analysis: Trendline Breakout
- Risk factors: Profitability and cash flow challenges, integration risk from acquisitions, high competition in edtech sector, dependence on student enrollments, rising marketing and acquisition costs, execution risk in scaling operations, regulatory changes in education sector, technology disruption risk, economic slowdown affecting discretionary spending, high debt or funding requirements, student retention challenges, margin pressure from expansion, dependence on key educators and brands, valuation risk during slower growth, and earnings volatility from acquisition-led expansion.
- Buy: ₹256–260
- Target price: ₹300 in two to three months
- Stop loss: ₹243
Buy: CREDITACCESS GRAMEEN LIMITED (current price: ₹1,589)
- Why it’s recommended: Leading microfinance institution, strong rural customer base, healthy loan growth potential, high collection efficiency, diversified borrowing sources, strong capital adequacy, expanding branch network, beneficiary of financial inclusion, improving operational efficiency, experienced management team, strong market position in microfinance, healthy profitability metrics, growing retail lending opportunities, scalable business model, and long-term rural credit demand.
- Key metrics: P/E: 32.10, 52-week high: ₹1,608.10, volume: ₹90.62 crore
- Technical analysis: Cup base breakout
- Risk factors: High exposure to microfinance loans, asset quality deterioration risk, regulatory changes in microfinance, economic slowdown affecting collections, geographic concentration risk, credit cost volatility, margin pressure from funding costs, political intervention risks, rural income volatility, competition from banks and NBFCs, dependence on monsoon and agriculture, liquidity and refinancing risks, technology and cybersecurity risks, earnings volatility during stress periods, and valuation risk during weaker credit cycles.
- Buy at: ₹1,573-1,597
- Target price: ₹1,850 in two to three months
- Stop loss: ₹1,490
How the Nifty 50 performed on 6 July
Indian equities extended their winning streak on Monday, with benchmark indices closing firmly higher amid broad-based buying supported by improving monsoon expectations, renewed foreign institutional investor (FII) inflows, easing crude oil prices, and improved global risk sentiment. Nifty 50 gained 159.50 points (+0.66%) to close at 24,430.35, while BSE Sensex advanced 521.16 points (+0.67%) to 78,285.07, marking the fourth consecutive session of gains.
On the sectoral front, Realty, Consumer Durables, Metals, Oil & Gas, Financials, and Private Banks outperformed. On the other hand, IT, Media, and PSU Banks witnessed profit booking. However, market breadth remained slightly negative despite the headline gains, with 1,578 stocks advancing, 1,769 stocks declining, and 115 remaining unchanged, indicating that the rally was largely driven by heavyweight large-cap stocks rather than broad-based participation.
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 64, 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 confirmed a breakout from its recent consolidation phase, which was confined between the 50- and 100-DMA, indicating an improvement in the near-term technical setup. This breakout reflects renewed buying interest after an extended period of range-bound trading and suggests that bullish momentum is gradually strengthening.
In the near term, 24,500–24,600 is likely to act as the first hurdle for the index. A decisive move above this level would shift focus to 24,650–24,800, which represents a key technical resistance area.
How did Nifty Bank perform?
Nifty Bank delivered a resilient performance on Monday, closing at 58,291.50 with a solid gain of 353.00 points, or 0.61%. Demonstrating steady bullish momentum, the index navigated intraday fluctuations after opening near its previous close of 57,938.50, eventually hitting an intraday high of 58,477.30.
This upward trajectory was heavily supported by positive Q1 provisional business updates from major private lenders. Specifically, HDFC Bank emerged as a significant leader, crossing the critical ₹800 milestone and lifting overall sentiment across the heavy-weight private banking complex.
While private banks spearheaded the index's gains, the broader banking space witnessed a polarized session with public-sector lenders like State Bank of India facing initial weakness, acting as a minor drag. From a macro perspective, the index benefited from persistent foreign institutional buying and favorable global cues, including stable international crude oil prices.
The index continues to exhibit a neutral-to-positive technical structure, with it 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 65, 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 toward 58,800–59,000 in the coming sessions. The index continues to trade above its 10-,, 21-,, 50-, and 100-DMA, reflecting a favorable 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.