Buy or sell stocks: The Indian stock market benchmarks, the Sensex and the Nifty 50, jumped on Friday, 17 July, largely due to healthy gains in shares of Reliance Industries and private bank heavyweights ahead of their Q1 results.
Index heavyweights Reliance Industries, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, and Axis Bank powered the benchmarks even as mid and small-cap segments remained under pressure amid escalating US-Iran tensions and higher crude oil prices.
Sensex jumped 965 points, or 1.25%, to close at 78,151.45, while Nifty 50 jumped 262 points, or 1.09%, to end at 24,334.30.
Nifty Outlook
Sumeet Bagadia, Executive Director at Choice Broking, highlighted that from a technical perspective, Nifty formed a strong bullish candle on the daily chart and reclaimed the key 24,300 zone, while also closing above its short-term moving averages, reflecting improving price structure. The index is now approaching the crucial resistance zone near 200-Day EMA, where a decisive breakout could trigger further upside momentum.
“Sector-wise, Private Banks, Financial Services, Auto, IT and Realty led the advance, whereas Pharma and Healthcare witnessed profit booking. The RSI strengthened to 58.48, indicating improving bullish momentum, while the MACD remained above the signal line with a rising histogram, signalling strengthening positive momentum,” he added.
Moreover, in the derivatives segment, the PCR improved to 1.13, reflecting a bullish undertone. Significant Call Open Interest is placed at 24,300–24,500, while Put Open Interest remains concentrated at 24,300–24,200, indicating a strong support base. Immediate support is seen at 24,150–24,200, while 24,500–24,550 remains the next key resistance zone, stated the expert.
Bank Nifty Outlook
According to the Choice expert, technically, Bank Nifty has formed a strong bullish candlestick, confirming a decisive breakout above the recent consolidation range and strengthening the ongoing uptrend. The index is trading comfortably above its key moving averages, highlighting improving momentum and robust buying interest.
“Support is placed at 58,000–58,100, while 58,800–59,000 remains the immediate resistance zone. A sustained move above this hurdle could extend the rally further, while the support zone is expected to attract buying on any near-term dip,” he highlighted.
Sumeet Bagadia’s stock recommendations today
Regarding stocks to buy on Monday, 20 July, Sumeet Bagadia recommended these three buy-or-sell stocks: TCS, Eicher Motors, and Hindustan Unilever
Eicher Motors
Buy EICHERMOT in Cash @7563 SL @ 7252 TGT @ 8200
Eicher Motors has successfully broken above its falling trendline resistance and is now trading around ₹7,563, indicating a positive shift in trend. The stock has reclaimed all the key moving averages, with the shorter-term EMAs positioned above the longer-term averages, reflecting strengthening bullish momentum. After finding strong support near the 200-day EMA, the stock has witnessed consistent buying, confirming the presence of demand at lower levels.
The RSI has improved to 58.67, suggesting healthy momentum with further upside potential. As long as Eicher Motors sustains above the ₹7,252 support zone which also coincides with the 20-day EMA, the breakout remains valid. A sustained move above the recent consolidation range could attract fresh buying interest and drive the stock towards the ₹8,200 target in the coming sessions.
TCS
Buy TCS in Cash @ 2269 SL @ 2147 TGT @ 2381 / 2500
TCS is witnessing a gradual recovery after a prolonged corrective phase and is currently trading around ₹2,269. The stock has recently managed to close above its 50-day EMA, indicating improving short-term sentiment, while it continues to trade below the 100-day and 200-day EMA, making these levels the immediate resistance zones. The 20-day EMA at ₹2,147 is expected to act as a crucial support and serves as the recommended stop-loss level.
The RSI has improved to around 61.54, reflecting strengthening momentum and increasing buying interest. A sustained move above the current levels could lead to an advance towards the 100-day EMA near ₹2,381, while a stronger breakout may extend the rally towards the previous swing high around ₹2,500. Holding above ₹2,147 will keep the recovery structure intact.
Buy HINDUNILVR in Cash @2143 SL @ 2022 TGT @ 2266 / 2323
Hindustan Unilever is showing early signs of recovery after an extended downtrend and is currently trading near ₹2,143. Although the stock remains below all its key moving averages, it has closed close to the 20-day EMA, indicating improving price action and the possibility of a trend reversal. The RSI is around 47.71 and has given a positive crossover, suggesting that downside momentum is gradually weakening while buying interest is beginning to emerge.
The ₹2,022 swing low remains an important support level and should be maintained as the strict stop-loss. A sustained move above the 20-day EMA could strengthen bullish momentum and open the door for a rally towards the 100-day EMA near ₹2,266, followed by the previous swing high around ₹2,323 as the next upside target.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
