Buy or sell stocks: Indian benchmark indices, the Sensex and the Nifty 50, rallied sharply on Wednesday, July 29, led by strong buying in banking and IT heavyweights.
The Sensex surged 889 points, or 1.16%, to close at 77,654.60, while the Nifty 50 climbed 265 points, or 1.10%, to settle at 24,250.20.
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Nifty 50
Nifty 50 extended its gain for the fourth consecutive session, ending the day at 24,250.20, up 264.85 points (+1.10%). The index opened with a strong 191-point gap-up at 24,176, reflecting positive market sentiment, and traded in a narrow range throughout the session. Buying momentum remained steady as Nifty gradually advanced towards the 24,250 zone, which acted as a key resistance from previous price action. The index consolidated around these levels during the latter half of the session and finally settled exactly at 24,250, indicating cautious optimism among market participants.
According to Sumeet Bagadia, Executive Director at Choice Broking, Nifty formed a strong bullish green candle, signalling sustained buying interest; however, the index continues to trade below the 200-day EMA, suggesting that the broader trend is yet to fully turn positive.
“From a technical standpoint, the RSI has improved to 56.11, indicating strengthening bullish momentum. India VIX declined further to 12.00, down by 4.42% reflecting lower market volatility and improving investor confidence, while the PCR at 1.13 continues to indicate a balanced-to-positive derivatives setup. Broad market participation remained encouraging, with Nifty Smallcap 50 and Nifty Smallcap 100 outperforming and displaying continued strength. Sector-wise, IT, Metal, and Financial Services emerged as the top gainers, whereas Auto, Realty, and REITs witnessed mild profit booking. As long as Nifty sustains above the 24,000–24,100 support zone, the index is expected to trade within the 24,000–24,400 range, with the overall bias remaining Sideways to Bullish,” said Bagadia.
Bank Nifty
Bank Nifty closed at 57,205.90, gaining 450.30 points (+0.79%) after a positive trading session. The index opened with a gap-up at 57,126, witnessed some initial decline, and found strong intraday support near the 57,000 mark. Buying gradually emerged from lower levels, helping the index recover steadily through the session. However, the rally faced resistance around the 57,300 zone, where the hourly chart showed rejection, leading to a mild pullback before the close.
Bagadia further noted that on the daily chart, the index continues to face resistance near its 20-day EMA, while the formation of a small upper wick reflects supply emerging at higher levels in daily candle.
“Technically, the index is attempting to stabilize above key support levels, but a decisive move above the immediate resistance is required to confirm stronger bullish momentum. Sustaining above 56,500–56,800 will remain crucial for further upside, while a breakout above 57,600–57,800 could strengthen buying interest. Until then, Bank Nifty is likely to remain within the defined range, with the overall outlook staying Sideways to Bullish,” he added.
Sumeet Bagadia’s stocks to buy
Sumeet Bagadia recommends five breakout shares to buy on Thursday, 30 July: Gland Pharma, PG Electroplast, Morepen Laboratories, Allied Blenders & Distillers, and Hexaware Technologies.
1] Gland Pharma: Buy at ₹2544, Target ₹2720, Stop Loss ₹2434
Gland Pharma continues to display strong bullish momentum after recently registering a fresh 52-week high and successfully witnessing a healthy retest of the breakout zone. In the latest trading session, the stock formed a powerful bullish Marubozu candlestick, indicating aggressive buying interest and suggesting that the primary uptrend remains firmly intact. Technically, the stock is trading comfortably above all its key moving averages, with the 20-day EMA acting as a strong dynamic support for the ongoing rally.
The successful retest followed by renewed buying confirms the strength of the breakout and improves the probability of further upside. If the stock sustains above the recent highs, it could extend its rally towards ₹2,720. On the downside, ₹2,434 should be maintained as a strict stop-loss, as it coincides with the 20-day EMA and represents a crucial support zone.
2] PG Electroplast: Buy at ₹612, Target ₹650, Stop Loss ₹583
PG Electroplast has shown a notable improvement in its technical structure after repeatedly facing resistance near its 200-day EMA over the past several months. Earlier, every attempt to cross this long-term average attracted selling pressure, but the recent price action indicates a decisive shift in sentiment. The stock has now converted the 200-day EMA into a strong support level and is sustaining comfortably above it, reflecting renewed buying interest. Momentum has also strengthened, with the RSI witnessing a positive crossover and currently trading around 63, indicating improving bullish momentum.
The stock is also trading above all major moving averages, further reinforcing the positive outlook. A sustained move above current levels may drive the stock towards ₹650. On the downside, ₹583 should be maintained as a strict stop-loss, aligning closely with the 20-day EMA support.
3] Morepen Laboratories: Buy at ₹57.85, Target ₹61.5, Stop Loss ₹55
Morepen Laboratories has staged a strong recovery from lower levels and continues to maintain a positive price structure after witnessing a healthy pullback. Following the recent rally, the stock briefly retraced towards its 50-day EMA, where it attracted fresh buying interest and resumed its upward move. This successful rebound from the moving average confirms that the ongoing trend remains intact and highlights the presence of strong demand on declines. Technically, the stock is now trading above all its key moving averages, signalling sustained bullish momentum.
The improving price action, supported by steady buying interest, suggests the potential for further gains in the coming sessions. If the stock continues to hold above the immediate support zone, it may move towards the ₹61.50 target. A strict stop-loss should be maintained at ₹55 to effectively manage downside risk.
4] Allied Blenders & Distillers: Buy at ₹645, Target ₹690, Stop Loss ₹610
Allied Blenders & Distillers has witnessed a sharp recovery from its recent lows and continues to build a constructive technical setup. After the strong upmove, the stock underwent a brief pullback towards its 100-day EMA, where it found solid support before reversing higher, indicating sustained buying interest at lower levels. The stock is now trading comfortably above all its key moving averages, reflecting a healthy bullish trend. Momentum indicators have also improved, with the RSI recording a positive crossover and currently hovering around 55.86, signalling strengthening momentum without entering overbought territory.
If the stock sustains above the recent breakout zone, it has the potential to extend its rally towards ₹690. On the downside, ₹610 remains a crucial stop-loss level, serving as an important technical support zone.
5] Hexaware Technologies: Buy at ₹618, Target ₹670, Stop Loss ₹582
Hexaware Technologies has been forming a consistent higher-high, higher-low pattern, indicating that the broader trend remains firmly positive. The latest rally has been supported by a noticeable increase in trading volumes, reflecting strong buying participation and improving investor confidence. A key technical development is the stock’s decisive breakout and close above its 200-day EMA, confirming a meaningful shift in long-term trend direction. Additionally, the 50-day EMA is approaching a bullish crossover above the 100-day EMA, which would further strengthen the positive technical outlook.
The stock is also holding above its shorter-term moving averages, reinforcing bullish momentum. If the current strength continues, the stock may extend its upmove towards the ₹670 target. On the downside, ₹582 should be maintained as a strict stop-loss, as it coincides with the 200-day EMA support.
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.
