Buy or sell stocks: The Indian stock market ended sharply lower on Wednesday, July 22, as selling pressure across sectors dragged benchmark indices down nearly 1% each, with mid- and small-cap stocks witnessing steeper losses.
The Sensex tumbled 715 points, or 0.92%, to settle at 76,755.05, while the Nifty 50 declined 191 points, or 0.79%, to close at 23,996.25. Broader markets underperformed, with the Nifty Midcap 100 index falling 1.09% and the Nifty Smallcap 100 index plunging 1.54%.
Stock market today
Nifty 50
Nifty 50 began the session on a weak note and came under sustained selling pressure during the first half, as negative sentiment weighed on investor confidence. The benchmark slipped sharply in early trade before finding buying support near the day’s lows, which helped it recover part of the losses during the afternoon session. However, the recovery proved short-lived, with profit booking emerging at every bounce and restricting any meaningful upside. The index finally settled at 23,996.25, down 191.45 points (-0.79%), ending the session just below the 24,000 mark. Overall, the intraday price action reflected cautious market sentiment, with sellers dominating despite intermittent buying at lower levels.
According to Sumeet Bagadia, Executive Director at Choice Broking, Nifty formed a strong bearish candle, signalling continued profit booking after the recent consolidation.
“Despite the weakness, the index managed to find support around its 50-day EMA, indicating that this remains an important demand zone for the bulls. The RSI eased to 48.61, reflecting weakening momentum, while India VIX climbed 5.50% to 13.29, pointing to increased market volatility. Immediate support is seen at 23,800–23,850, whereas 24,150–24,200 remains the immediate resistance zone. Unless the index breaks decisively on either side, it is likely to remain within the 23,800–24,200 range, with the overall bias remaining Sideways,” said Bagadia.
Bank Nifty
Bank Nifty witnessed a weak trading session as banking stocks remained under pressure for most of the day. After opening lower, the index extended its decline during the morning session, reflecting broad-based weakness across the financial space. Although value buying emerged intermittently during the afternoon, the recovery lacked conviction and failed to alter the overall market structure. Selling resurfaced towards the closing hours, pulling the index lower to settle at 57,126.80, a loss of 708.55 points (-1.23%). The session reflected continued caution among traders, with market participants preferring to lighten positions rather than build fresh long exposure.
Bagadia noted that Bank Nifty formed a large bearish candle, reinforcing the prevailing short-term weakness.
“The index also slipped below its 20-day EMA, signalling a deterioration in short-term trend strength and indicating that bears currently hold the upper hand. Immediate support is placed at 56,300–56,400, while 57,800–57,900 is expected to cap any near-term recovery. A move back above the resistance zone would improve sentiment and could attract fresh buying interest, whereas a sustained break below support may accelerate the ongoing correction. Until a decisive move emerges, Bank Nifty is expected to trade within the 56,300–57,900 range, with the overall bias remaining Sideways to Bearish,” he added.
Sumeet Bagadia’s stocks to buy
Sumeet Bagadia recommends five breakout shares to buy on Thursday, 23 July: Chennai Petroleum Corporation, Gandhar Oil Refinery India, Polyplex Corp, Divgi TorqTransfer Systems, and Aegis Logistics.
1] Chennai Petroleum Corporation: Buy at ₹1307, Target ₹1400, Stop Loss ₹1250
Chennai Petroleum Corporation is witnessing strong bullish momentum and is currently trading around ₹1,307, marking a fresh lifetime high. The stock recently respected its 50-day EMA, from where it witnessed a sharp reversal, reaffirming the strength of the prevailing uptrend. Technically, it continues to form a classic higher high–higher low structure, indicating sustained buying interest and positive price action.
The stock is comfortably trading above all its all key moving averages, reflecting a firmly established bullish trend. Additionally, the RSI stands at 66.92, suggesting healthy momentum while still leaving room for further upside. As long as the stock holds above the ₹1,250 support zone, the trend remains positive. A sustained move higher could propel the stock towards the ₹1,400 target in the coming sessions.
2] Gandhar Oil Refinery India: Buy at ₹236, Target ₹255, Stop Loss ₹222
Gandhar Oil Refinery (India) is trading near ₹236, after registering a fresh 52-week high, highlighting the strength of the ongoing bullish trend. The stock has witnessed a strong vertical rally, supported by consistent buying momentum and a well-defined higher high–higher low formation on the daily chart. It continues to trade comfortably above all its all key exponential moving averages, indicating that the broader trend remains firmly in favour of the bulls.
The recent price action reflects sustained accumulation, with buyers actively supporting every minor decline. As long as the stock maintains above the ₹222 support level, the bullish structure is expected to remain intact. A sustained continuation of the current momentum could drive the stock towards the ₹255 target over the near term.
3] Polyplex Corp: Buy at ₹1115, Target ₹1200, Stop Loss ₹1050
Polyplex Corporation is showing strong signs of a trend reversal and is currently trading around ₹1,115. The stock has formed a bullish engulfing candlestick pattern on the daily chart, accompanied by a noticeable rise in trading volumes, indicating fresh buying interest. Technically, the 100-day EMA is on the verge of crossing above the 200-day EMA, a positive development that could strengthen the medium-term bullish outlook.
The stock is already trading above its short-term moving averages, confirming improving price strength. Meanwhile, the RSI is placed at 70.80, reflecting strong bullish momentum despite entering the higher range. As long as the stock holds above ₹1,050, the positive structure remains intact, with the potential to extend its rally towards the ₹1,200 target.
4] Divgi TorqTransfer Systems: Buy at ₹950, Target ₹1025, Stop Loss ₹900
Divgi TorqTransfer Systems Ltd. is currently trading around ₹950 after witnessing a healthy correction from its recent 52-week high of ₹1,065 recorded at the beginning of July. The decline largely reflected profit booking, with the stock finding strong support near its 20-day EMA and the 38.2% Fibonacci retracement level around ₹903. From this important support zone, the stock has staged a smart recovery and is once again trading above all its all key moving averages, indicating that the broader uptrend remains intact.
The RSI is placed at 57.25 and is on the verge of a bullish crossover, signalling improving momentum. As long as ₹900 holds as support, the stock has the potential to move towards the ₹1,025 target in the near term.
5] Aegis Logistics: Buy at ₹1351, Target ₹1450, Stop Loss ₹1290
Aegis Logistics is trading around ₹1,351, maintaining a strong bullish bias after a sharp upmove that previously took the stock to a high of ₹1,423.50. Following this vertical rally, the stock witnessed a phase of profit booking, but the correction found reliable support near the 20-day EMA, where fresh buying emerged. The subsequent rebound pushed the stock to a fresh all-time high of ₹1,434.50, highlighting the underlying strength in the trend.
The stock continues to trade above all major moving averages, while the RSI stands at 63.27, reflecting healthy bullish momentum without entering extreme overbought territory. As long as the stock sustains above ₹1,290, the ongoing uptrend remains intact, with the potential to rally towards ₹1,450 and register another fresh all-time high.
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.
