Two stock recommendations for today by MarketSmith India
Buy:Cholamandalam Financial Holdings Ltd.(current price: ₹2,141)
- Why it’s recommended: Diversified financial services portfolio, consistent focus on risk management and value creation
- Key metrics: P/E: 8.35, 52-week high: ₹ 2,231.60, volume: ₹ 66.17 crore
- Technical analysis: Cup-with-handle pattern breakout on above average volume
- Risk factors: Regulatory risks, market and economic volatility, and concentration risk
- Buy: ₹2,141
- Target price: ₹2,490 in two to three months
- Stop loss: ₹1,990
Buy: Dhanuka Agritech (current price: ₹1,779)
- Why it’s recommended: Diversified product portfolio, strong distribution network, strategic alliances with global innovators
- Key metrics: P/E: 26.09, 52-week high: ₹ 1,926, volume: ₹21.17 crore
- Technical analysis: Bullish flag breakout
- Risk factors: Monsoon dependency, raw material volatility and China dependency
- Buy at: ₹ 1,779
- Target price: ₹ 2,100 in two to three months
- Stop loss: ₹ 1,640
How the Nifty 50 performed on 17 July
Markets were volatile on the weekly expiry day and ended nearly half a percent lower amid mixed cues. The Nifty opened flat and gradually drifted lower through the session, with a brief mid-day rebound failing to hold. The index eventually settled near the day’s low at 25,111, down 0.40%. IT, PSU banks and private banks were the major draggers, while realty, pharma and metal stocks showed some resilience, though not enough to offset the overall weakness. Notably, the broader markets outperformed the benchmarks, ending almost flat. The advance-decline ratio remained balanced at 1:1, reflecting a neutral market breadth.
Over the past four trading sessions, the index slipped below its 21-DMA. It continues to trade within a narrow range between the 21- and 50-DMA, indicating indecision in the near term. On the daily timeframe, the relative strength index (RSI) has turned upward and is now approaching 47-48, indicating a mild improvement in momentum. However, the daily MACD continues to trend with a negative crossover above the zero line, indicating a lack of strong bullish confirmation.
According to O’Neil’s methodology of market direction, Nifty reclaimed its recent high of 25,116. Hence, the market status has been upgraded to a Confirmed Uptrend as of June 11, 2025.
The index once again failed to surpass 25,250 and closed lower near 25,100, just 100 points above its 50-DMA. On the downside, if the index fails to hold above its 50-DMA support at 25,000, it may slip further toward 24,900 and potentially 24,750. To regain bullish momentum, a decisive breakout and sustained close above 25,300 is crucial. If this level is breached, the index could advance toward the 25,600-25,700 resistance zone in the coming sessions.
How did Nifty Bank perform?
On Thursday, Nifty Bank ended its three-day winning streak on a weak note, closing lower and breaching its 21-DMA. The index formed a bearish candle on the daily chart, marked by a lower-high and lower-low price structure—indicating potential near-term weakness. The decline was broad-based, with all constituent banking stocks closing in the red. Notably, IndusInd Bank, Canara Bank, Federal Bank, and PNB were among the worst performers, exerting significant downward pressure on the index.
The momentum indicator, RSI, has shown a mild downturn and is currently positioned at 53, indicating a neutral stance with a slight loss of upward momentum. Meanwhile, the MACD has formed a negative crossover but remains above the zero line—signaling that while the broader trend remains positive, cautious observation and further confirmation are needed before validating a renewed bullish strength.
As per O’Neil’s methodology of market direction, Bank Nifty remains in a “Confirmed Uptrend”, a trend it has sustained over the past few weeks.
At the current juncture, Nifty Bank has slipped below its 21-DMA, signaling the need for heightened caution in the near term. A sustained recovery above this level—particularly a decisive move past 57,000—will be critical for reinforcing the bullish outlook. Should the index manage to reclaim and hold above this threshold, it may open the door for an advance toward the immediate resistance at 57,200, with further upside potential extending to 57,650.
On the downside, the 56,600–56,500 zone remains a key support area and is expected to provide a cushion against near-term pullbacks. Vigilant monitoring of these levels is essential for timely risk management and positioning.
MarketSmithIndia is a stock research platform and advisory service focused on the Indian stock market. It offers tools and resources to help investors make informed decisions based on the CAN SLIM methodology, founded by legendary investor William J. O’Neil. You can access a 10-day free trial by registering on its website.
Trade name: William O’Neil IndiaPvt. Ltd.
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Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
