Stock market update: The Indian equity benchmarks staged a steady recovery on Thursday, rebounding from the previous session's sharp correction despite escalating West Asian geopolitical tensions that pushed Brent crude prices near $79 per barrel.
Nifty 50 reclaimed crucial ground to close at 23,962.80, up 80.75 points or 0.34%, while BSE Sensex advanced 238.22 points, or 0.31%, to settle at 76,741.82. Market breadth heavily favored the bulls, reflecting robust broad-market participation as the advance-decline ratio stood exceptionally strong with 2,522 stocks advancing against 780 stocks declining.
Sectoral performance was led by Nifty Realty, which surged 3.54%, followed by strong buying in Consumer Durables, Pharma, and Financial Services. Defensively, major blue-chips like Titan and Sun Pharma provided critical support, though gains were capped by mild profit-booking in IT heavyweights like Infosys and Tata Consultancy Services.
From a macroeconomic lens, investor sentiment was primarily guided by global inflation concerns as the domestic rupee faced downward pressure, slipping toward 95.63 against the US dollar amid a firmer greenback and surging energy import bills.
Two stock recommendations by MarketSmith India:
Buy: Neogen Chemicals Limited (current price: ₹2,030)
- Why it’s recommended: Strong specialty chemicals portfolio, leadership in bromine chemistry, growing lithium chemicals business, beneficiary of EV battery demand, strong R&D capabilities, high entry barriers in niche products, capacity expansion supporting growth, beneficiary of China+1 theme, diversified customer base, strong export opportunities, focus on value-added products, long-term specialty chemicals demand, import substitution opportunity, improving product mix, and healthy growth potential.
- Key metrics: P/E: 187.70, 52-week high: ₹2,090.00, volume: ₹17.87 crore
- Technical analysis: Trendline Breakout
- Risk factors: Raw material price volatility, dependence on lithium market growth, execution risk in capacity expansion, regulatory and environmental risks, intense competition in specialty chemicals, demand slowdown in end-user industries, margin pressure from input costs, customer concentration risk, working capital intensive operations, forex fluctuation impact, project execution delays, technology and process risks, global economic slowdown, cyclical chemical industry risks, and valuation risk after strong re-rating.
- Buy: ₹2,010–2,040
- Target price: ₹2,300 in two to three months
- Stop loss: ₹1,920
Buy: Goodluck India Limited (current price: ₹1,557)
- Why it’s recommended: Diversified steel products portfolio, strong presence in engineering steel, beneficiary of infrastructure growth, expanding value-added product mix, strong export opportunities, diverse end-user industries, capacity expansion supporting growth, healthy demand from renewable sector, beneficiary of railways and defence demand, improving operational efficiency, strong manufacturing capabilities, growing engineering exports, healthy revenue growth potential, long-term industrial demand outlook, and improving return ratios.
- Key metrics: P/E: 26.46, 52-week high: ₹1,560.00, volume: ₹68.52 crore
- Technical analysis: Flat base pattern breakout
- Risk factors: Steel price volatility, raw material cost fluctuations, dependence on infrastructure spending, cyclical steel industry demand, margin pressure from competition, export demand fluctuations, working capital-intensive business, high energy and fuel costs, project execution risks, economic slowdown affecting demand, customer concentration risk, environmental compliance risks, capacity utilization risk, forex fluctuation impact, and valuation risk during steel downturns.
- Buy at: ₹1,541–1,565
- Target price: ₹1750 in two to three months
- Stop loss: ₹1,460
How the benchmark index performed
Indian equity markets ended on a positive note on July 9, 2026, recovering from the previous session's sharp sell-off as improved global risk sentiment and continued buying in financials and defensive sectors lifted investor confidence. Nifty 50 closed at 23,962.80, up 80.75 points (+0.34%), after trading in a range of 23,925.70–24,134.70, while Sensex gained more than 600 points, supported by broad-based buying across large-cap stocks. Market breadth remained decisively positive, with 2,522 stocks advancing, 780 stocks declining, and 112 remaining unchanged, indicating widespread participation beyond benchmark constituents. On the sectoral front, Realty (+3.54%) emerged as the top performer, followed by Media (+2.09%), Consumer Durables (+1.68%), PSU Bank (+1.62%), Healthcare (+1.00%), Pharma (+0.89%), FMCG (+0.76%), and Financial Services (+0.68%), while IT (-0.30%) and Auto (-0.21%) underperformed amid selective profit booking.
Nifty 50 staged a modest recovery, closing at 23,962.80 (+0.34%), but the daily candlesticks reflected continued hesitation near higher levels. During the session, the index briefly moved above the 100-DMA intraday but failed to sustain the breakout, witnessing profit booking at elevated levels before settling lower. As a result, the index continues to trade between its 50- and 100-DMA, indicating a phase of consolidation rather than a decisive directional trend. The RSI has eased to around 50, after retreating from higher levels, suggesting neutral momentum with neither bulls nor bears holding a clear advantage. Meanwhile, the MACD remains in positive territory with the MACD line above the signal line, although the narrowing histogram points to waning bullish momentum.
The index is currently trading near a crucial support zone of 23,800, which will be closely monitored in the coming sessions. A decisive breakdown 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 yesterday?
Nifty Bank opened on a positive note and extended its gains during the session, reflecting sustained buying interest. The index opened at 56,871.00, touched an intraday high of 57,464.20, slipped to a low of 56,867.30, and finally closed at 57,252.45, up 509.85 points (+0.90%). Although some profit-booking emerged after the index tested higher levels, it recovered from the intraday low. It closed comfortably in the green, indicating that buyers retained control despite late-session volatility. The formation of a bullish candle with a relatively long upper shadow suggests buying strength at lower levels, although overhead supply near 57,400–57,500 continues to cap the upside. Sustained closes above this hurdle could further strengthen the ongoing recovery.
The RSI is placed around 52.70, easing from higher levels but remaining above the neutral 50 mark, indicating that bullish momentum has moderated without turning negative. The MACD remains above the zero line, although the MACD line has started to flatten and is on the verge of a bearish crossover with the signal line, reflecting weakening short-term momentum. Despite this loss of momentum, the broader technical structure remains constructive as the index continues to trade above the 100- and 200-DMA. However, traders should watch for confirmation from momentum indicators before expecting a fresh directional move.
On the downside, immediate support is near 57,200, followed by 56,850–56,900, while stronger support is around the 100-DMA at 56,216. On the upside, immediate resistance is located at 57,450–57,500, followed by 57,800, which coincides with the 10-DMA, while a decisive move above this region could pave the way toward 58,000–58,300. Technically, the index remains in a recovery phase but is encountering resistance near key moving averages. With mixed global cues and evolving earnings expectations, the near-term trend is likely to remain range-bound with a positive bias, provided the index sustains above the 57,000–57,200 support zone. A breakout above 57,500 could trigger fresh buying momentum, whereas a failure to hold support may invite short-term corrective 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.