Buy or sell stocks: The Indian stock market extended its losses on Tuesday, July 28, with the benchmark indices ending marginally lower amid mixed signals from global markets.
The Sensex slipped 70 points, or 0.09%, to settle at 76,765.92, while the Nifty 50 fell 11 points, or 0.04%, to close at 23,985.35.
Stock market today
Nifty 50
Nifty 50 ended almost unchanged at 23,985.35, down 10.60 points (-0.04%), after a range-bound expiry session. The index traded within a narrow band throughout the day as option writers capped both upside and downside moves, keeping volatility subdued. Technically, the market lacked strong directional momentum and continued to consolidate near the 24,000 mark. The RSI stood at 49.55, indicating neutral momentum, while India VIX declined 0.77% to 12.56, reflecting a mild easing volatility.
The PCR at 0.93 suggested a balanced derivatives setup. Sectoral performance remained mixed, with IT, Realty, Pharma, Midcap IT, and Consumer Durables emerging as the strongest performers, reflecting continued buying interest in select growth-oriented sectors. On the other hand, FMCG, Chemicals, PSU Banks, Banking, and Metal witnessed selling pressure, indicating profit booking and relatively weaker market sentiment in these segments.
According to Sumeet Bagadia, Executive Director at Choice Broking, Nifty continues to witness resistance near its 20-day EMA, indicating that the short-term trend remains weak despite holding above immediate support levels.
“The daily chart suggests continued consolidation, with buyers and sellers remaining evenly matched. Momentum indicators remain neutral, and unless the index decisively crosses higher resistance levels, range-bound movement is likely to persist. Traders should closely watch the 23,800–23,850 support zone, while 24,200–24,250 remains the immediate resistance area. The expected trading range for the next session is 23,800–24,250, with the overall bias remaining Sideways to Bullish,” said Bagadia.
Bank Nifty
Bank Nifty closed at 56,755.60, declining 331.60 points (-0.58%) after witnessing sustained selling pressure during the session. The index opened at 56,883.55, moved to an intraday high of 57,054.20, and slipped to a low of 56,672.40 before ending near the day’s lower range. Following a gap-down opening, the index remained under pressure for most of the session, with repeated selling emerging on every intraday recovery. The 57,000 mark acted as a strong hurdle throughout the day, preventing any meaningful upside and eventually resulting in a bearish red candle on the daily chart.
Bagadia noted that the index managed to find support near its 100-day EMA, indicating that the broader medium-term structure remains intact despite the short-term weakness.
“The inability to reclaim the 57,000 level suggests that bulls still lack conviction at higher levels. As long as the index sustains above 56,700–56,850, downside may remain limited, while a decisive move above 57,350–57,500 would be required to trigger fresh buying momentum. Until then, the index is expected to remain within a broad consolidation range with a Sideways to Bullish bias,” he added.
Sumeet Bagadia’s stocks to buy
Sumeet Bagadia recommends five breakout shares to buy on Wednesday, 29 July: eClerx Services, Universal Cables, Five-Star Business Finance, Mankind Pharma, and Knowledge Marine & Engineering Works.
1] eClerx Services: Buy at ₹1897.7, Target ₹2030, Stop Loss ₹1800
ECLERX has staged a strong recovery after witnessing a prolonged corrective phase and is now trading around 1897.7. The stock has reclaimed all its key moving averages, indicating a clear shift in momentum in favor of the bulls. Technically, the 20-day EMA has crossed above the 200-day EMA, while the price is trading comfortably above the 100-day and 200-day EMAs, confirming improving trend strength.
The recent sharp up move, supported by healthy volumes, reflects renewed buying interest after a successful breakout. On the downside, 1800 remains a crucial support and should be maintained as the stop-loss level. A sustained move above the current zone could drive the stock towards 2030, provided buying momentum continues.
2] Universal Cables: Buy at ₹1316, Target ₹1400, Stop Loss ₹1240
Universal Cables continues to display strong bullish momentum and is currently trading near 1316 after a steady uptrend. The stock remains well above its 20-day, 50-day, 100-day and 200-day EMAs, reflecting a healthy medium-term trend. Recent price action indicates buyers are consistently accumulating at higher levels, while rising volumes support the ongoing breakout structure.
The positive alignment of moving averages further strengthens the bullish outlook, suggesting the trend remains intact. On the downside, 1240 acts as an important support level and should be considered as the stop-loss to manage risk. If the stock sustains above 1316, it may extend its rally towards 1400, backed by continued momentum and strong technical structure.
3] Five-Star Business Finance: Buy at ₹561, Target ₹600, Stop Loss ₹540
Five-Star Business Finance is showing steady improvement and is currently trading around 561 after witnessing a gradual recovery from its recent lows. Technically, the stock is trading above all its key moving averages, reflecting a strengthening price structure. The 20-day EMA has been consistently acting as immediate support, indicating sustained buying interest on every dip. Meanwhile, the 50-day EMA is on the verge of crossing above the 200-day EMA, a bullish long-term signal that could further strengthen the prevailing uptrend.
Recent consolidation near current levels suggests healthy accumulation before the next leg higher. On the downside, 540 remains a crucial support level and should be maintained as the stop-loss. If the stock sustains above the current zone, it could pave the way for an upside move towards 600, backed by improving momentum and positive technical setup.
4] Mankind Pharma: Buy at ₹2618, Target ₹2800, Stop Loss ₹2500
Mankind Pharma is displaying a strong bullish setup and is currently trading around 2618 after witnessing a small range breakout above the 2580 resistance zone. The stock has also managed to close above the crucial 2600 level, adding further strength to the ongoing uptrend and signalling renewed buying interest. Technically, the price is trading above all its major moving averages, with the 20-day EMA consistently acting as a reliable support, highlighting sustained demand on every dip. The overall alignment of the 50-day, 100-day, and 200-day EMAs further reinforces the positive trend.
On the downside, 2500 remains a key support level and should be maintained as the stop-loss. If the stock sustains above the breakout zone, it could extend its rally towards the 2800 target, supported by improving momentum and strong technical structure.
5] Knowledge Marine & Engineering Works: Buy at ₹2516, Target ₹2700, Stop Loss ₹2360
Knowledge Marine & Engineering Works is trading around 2516 after extending its ongoing upward trend with consistent higher highs and higher lows. The stock remains firmly above all key moving averages, confirming a strong bullish market structure. The 20-day EMA continues to provide immediate support, while the positive alignment of the 50-day, 100-day and 200-day EMAs reflects sustained medium-term strength.
Recent price action suggests continued buying interest following a breakout from consolidation, supported by stable momentum. On the downside, 2360 acts as a crucial support level and should be considered as the stop-loss. If KMEW sustains above the current zone, it could witness further upside towards 2700, with momentum favoring the bulls.
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.
