Stocks to buy or sell: Osho Krishan of Angel One suggests buying Aarti Industries, ICICI Prudential shares on 16 July

Stock market today: Indian benchmark indices opened higher on Thursday, 16 July, led by a rebound in information technology stocks, while investors digested June-quarter earnings from key financial companies. However, gains remained capped as escalating tensions in the Middle East kept risk sentiment in check.

The Nifty 50 rose 0.2% to 24,125.10, while the BSE Sensex advanced 0.23% to 77,369.88 in early trade.

Market breadth was positive, with 10 of the 16 major sectoral indices trading in the green. Meanwhile, the broader midcap and smallcap indices were largely unchanged.

The Nifty IT index climbed 1.4%, recovering after declining 1.7% over the previous two sessions. Wipro and Tech Mahindra, both scheduled to announce their June-quarter earnings later in the day, gained around 1.5% each.

Among individual stocks, ICICI Lombard General Insurance tumbled 10% after reporting a decline in its quarterly profit.

Investor sentiment remained cautious as geopolitical tensions intensified after the United States carried out fresh strikes on Iran's coastal defence and missile installations, following the reimposition of a naval blockade on Iranian ports. In response, Iran warned it could expand disruptions to regional energy exports, describing the conflict as an "existential war" with the US.

Meanwhile, Brent crude remained elevated at around $85 per barrel, sustaining concerns over inflation and India's import bill.

Nifty 50 Outlook by Osho Krishan, Sr. Analyst, Technical & Derivatives, Angel One

Osho Krishan, Senior Analyst - Technical & Derivatives at Angel One, said the Nifty 50 witnessed a volatile trading session, opening on a positive note before profit booking erased early gains. A recovery in the final hour helped the index end marginally higher at 24,078, up 0.11%.

According to Krishan, the benchmark continues to trade within a well-defined 24,000-24,260 range, and the broader technical structure remains unchanged. He believes the index is unlikely to witness any meaningful directional momentum unless it breaks decisively above or below this range.

Krishan noted that repeated rejections at the 24,250-24,300 zone indicate strong overhead supply pressure. He also highlighted the formation of a potential bearish Head and Shoulders pattern on shorter-duration charts, with the neckline placed around the crucial 23,850-23,800 support zone.

However, he clarified that the bearish setup would be confirmed only if the Nifty 50 breaks decisively below the immediate 24,000 support. Such a move could initially drag the index towards the 23,850-23,800 support cluster, and a breach of that zone could accelerate downside momentum.

On the upside, Krishan sees the 24,200-24,250 range as the immediate resistance, while 24,300-24,350 remains a stronger hurdle for the index.

Despite a lack of momentum in the benchmark indices, Krishan noted that the midcap and smallcap segments continue to outperform. In the current market environment, he recommends a stock-specific approach, focusing on fundamentally and technically strong stocks, until the Nifty 50 establishes a clear directional trend.

Stocks To Buy on Thursday- Osho Krishan

On stocks to buy on Thursday, Osho Krishan of Angel One recommended two stocks - Aarti Industries Ltd, and ICICI Prudential Life Insurance Company Ltd.

Aarti Industries has strengthened its technical position after rebounding from the 430 subzone and sustaining above its significant EMAs. The chart structure suggests an emerging continuation pattern, with multiple heads of resistance breakout on the daily charts. With positive crossover in the MACD histogram above the signal line, the counter seems poised to continue its northward march

Hence, we recommend a BUY in Aarti Industries around ₹500-495 with a Stop Loss of ₹465 and a Target of ₹550-560

ICICI Prudential Life Insurance Company has shown notable strength over the past few sessions, surpassing its 20 and 50 DEMA with strong volume support. A positive divergence between price action and the daily RSI indicates improving bullish momentum. The stock has also retested the neckline of its previous breakdown, suggesting a potential technical pullback. Overall, the current setup offers a favourable risk-reward opportunity.

Hence, we recommend a BUY in ICICI Prudential Life around ₹520-510 with a Stop Loss of ₹480 and a Target of ₹580.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.