Buy or sell stocks: Benchmark equity indices Sensex and Nifty 50 closed in the red on Monday, July 20, mirroring weak global sentiment as rising US-Iran tensions weighed on investor mood.
The Sensex fell 443 points, or 0.57%, to settle at 77,708.52, while the Nifty 50 lost 96 points, or 0.39%, ending the session at 24,238.50.
Despite the broader market weakness, mid- and small-cap stocks outperformed. The Nifty Midcap 100 advanced 0.60%, while the Nifty Smallcap 100 gained 0.16%.
Stock market today
Nifty 50
Nifty 50 ended the session at 24,238.50, declining 95.80 points (-0.39%) after a range-bound trading session influenced by cautious global cues. The index opened on a weak note and remained under pressure during the first half, slipping to an intraday low of 24,135.85 before witnessing steady buying from lower levels. A gradual recovery through the latter half helped the benchmark trim a significant portion of its losses and settle well above the day’s low, reflecting resilience despite the negative close. The index touched an intraday high of 24,266.10, but failed to sustain above higher levels as profit booking capped the upside. Overall, price action indicated that buyers continued to defend lower levels while traders remained selective amid mixed global sentiment.
According to Sumeet Bagadia, Executive Director at Choice Broking, Nifty formed a small-bodied bullish recovery candle with a long lower shadow, indicating buying interest emerging at lower levels after early weakness. Sector-wise, NIFTY PSU Bank, Pharma, Healthcare and Media outperformed, while Private Bank, Financial Services, Auto and IT remained under pressure.
“The RSI stood at 55.93, suggesting momentum continues to favour the bulls despite short-term consolidation, while the PCR improved to 1.09, reflecting a balanced-to-positive derivatives setup. Open Interest data shows significant Call writing at 24,300–24,500 and Put support at 24,000–24,200, highlighting a likely trading range in the near term. Immediate support is placed at 24,100–24,150, whereas 24,300–24,350 remains the crucial resistance zone, with a sustained move above this hurdle likely to strengthen bullish momentum,” said Bagadia.
Bank Nifty
Bank Nifty settled at 57,945, down 576.40 points (-0.98%), after witnessing a recovery session marked by a sharp gap-down opening. The index initially came under selling pressure following weak opening sentiment, but buying interest near lower levels helped it recover a large part of the intraday decline. Throughout the second half, the index gradually moved higher, indicating that participants were willing to accumulate around key support levels. Despite the recovery, the benchmark closed in negative territory, reflecting continued caution in the banking space. The overall session suggested that while bears dominated the opening trade, bulls managed to regain control during the latter half of the day.
Bagadia noted that the index formed a recovery candle, signalling strong buying demand from lower levels and indicating that downside pressure is being absorbed. The index continues to trade above its 20, 50, 100 and 200-day moving averages, keeping the broader market structure constructive despite the day’s decline.
“The immediate support zone is placed at 57,450–57,500, while 58,400–58,450 is expected to act as the first major hurdle for the ongoing recovery. As long as the index holds above the support zone, buying interest is likely to remain intact and could push Bank Nifty towards higher resistance levels. However, a decisive breach below support may trigger fresh selling pressure and lead to an extended corrective phase in the near term,” said Bagadia.
Sumeet Bagadia’s stocks to buy
Sumeet Bagadia recommends five breakout shares to buy on Monday, 21 July: JSW Energy, Bajaj Healthcare, Steel Strips Wheels, Saregama India, and Gabriel India.
1] JSW Energy: Buy at ₹567, Target ₹610, Stop Loss ₹539
JSW Energy has witnessed a strong resurgence after successfully taking support near its 100-day and 200-day EMA, indicating that the long-term trend remains firmly intact. In the latest trading session, the stock surged nearly 4.9%, forming a powerful bullish engulfing candle with Marubozu characteristics, reflecting aggressive buying interest and strong market conviction. The stock has now reclaimed and is trading comfortably above all its key moving averages, which strengthens the bullish outlook.
This price action suggests that momentum is shifting decisively in favour of the bulls and could lead to further upside in the coming sessions. A sustained move above current levels may open the door towards ₹610. On the downside, ₹539 serves as a crucial stop-loss, coinciding with the 100-day EMA and acting as a strong technical support zone.
2] Bajaj Healthcare: Buy at ₹386, Target ₹415, Stop Loss ₹365
Bajaj Healthcare continues to display a healthy higher-high, higher-low structure, reflecting sustained buying interest after a significant recovery from lower levels. Following a prolonged consolidation phase, the stock has finally delivered a decisive close above its 200-day EMA and is now comfortably sustaining above this long-term trend indicator, signalling a potential reversal in momentum. The alignment of the shorter-term moving averages above the medium-term averages further supports the improving technical setup.
Rising RSI levels also indicate strengthening momentum without entering extreme overbought territory. If the stock continues to hold above the 200-day EMA, it may witness fresh buying interest and extend its rally towards ₹415. On the downside, ₹365 remains a critical stop-loss level as it coincides with the 200-day EMA and serves as an important support zone.
3] Steel Strips Wheels: Buy at ₹276, Target ₹295, Stop Loss ₹264
Steel Strips Wheels (SSWL) continues to exhibit impressive relative strength and is currently trading close to its 52-week high, highlighting sustained bullish momentum. The stock has been consistently maintaining a higher-high, higher-low formation, reflecting a strong uptrend backed by continued buying interest. The 20-day EMA has acted as a reliable dynamic support throughout the recent rally, with every dip attracting fresh accumulation.
Additionally, the stock remains comfortably above all major moving averages, reinforcing the positive trend. Strong price action supported by improving momentum indicators suggests the possibility of further upside in the near term. A sustained move above the recent highs could drive the stock towards the ₹295 target. On the downside, ₹264 should be maintained as a strict stop-loss to protect against any short-term corrective move.
4] Saregama India: Buy at ₹514, Target ₹550, Stop Loss ₹490
Saregama India has delivered a strong breakout after consolidating for several weeks and successfully crossed the psychological resistance of ₹500, signalling renewed bullish momentum. The breakout has pushed the stock towards fresh 52-week high territory, reflecting robust buying participation and strengthening investor confidence. Technically, the setup has become more constructive as the 100-day EMA is on the verge of crossing above the 200-day EMA, indicating a positive long-term trend reversal.
The stock is also trading comfortably above all major moving averages, while momentum indicators continue to remain supportive. If the breakout sustains above ₹500, the stock has the potential to extend its rally towards ₹550 in the coming sessions. A stop-loss at ₹490 is recommended, as it marks an important support and breakout retest zone.
5] Gabriel India: Buy at ₹1398, Target ₹1500, Stop Loss ₹1322
Gabriel India has delivered an impressive volume-backed breakout, registering a fresh all-time high and confirming strong institutional participation. The sharp rise in volume alongside the price breakout indicates conviction behind the ongoing rally and suggests that bullish momentum remains firmly intact. The stock is trading comfortably above all its key moving averages, with the EMAs aligned positively, reinforcing the prevailing uptrend.
The RSI is currently hovering around 70.40, reflecting strong momentum while remaining consistent with a trending market. Such a setup often supports continuation of the ongoing rally rather than an immediate reversal. As long as the stock sustains above the breakout zone, it has the potential to move towards the ₹1,500 target. On the downside, ₹1,322 should be maintained as a strict stop-loss to manage risk effectively.
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.
