Buy or sell stocks: The benchmark indices, the Sensex and the Nifty 50, logged gains for a third straight session on Friday, July 3, led by buying in IT and pharmaceutical stocks despite mixed global market cues.
The Sensex advanced 262 points, or 0.34%, to close at 77,763.91, while the Nifty 50 climbed 95 points, or 0.39%, to settle at 24,270.85.
Stock market today
Nifty 50
The benchmark Nifty 50 enters the upcoming trading week with a positive bias after extending its gains for the third consecutive session and successfully breaking out above the crucial 24,200 resistance zone. The index has shown resilience despite intermittent profit booking and continues to trade above its key moving averages, indicating that the broader trend remains constructive. Improved market sentiment, easing volatility, and sustained participation from both institutional and retail investors have further strengthened the market’s undertone.
According to Sumeet Bagadia, Executive Director at Choice Broking, the 24,150–24,200 zone is expected to act as the immediate support area, as it coincides with the recent breakout zone, the falling resistance trendline, and the 100-day EMA. As long as Nifty sustains above this range, the bullish structure is likely to remain intact and any corrective decline may attract fresh buying interest. A decisive break below 24,150 could result in consolidation towards the 24,050–24,000 zone, which remains a crucial short-term support area.
“On the upside, the index faces immediate resistance near 24,400, which coincides with the 200-day EMA. A sustained move above this hurdle could strengthen bullish momentum and pave the way for an advance towards 24,600, which marks the April swing high and a significant resistance level on the higher timeframe. Momentum indicators continue to support the positive outlook, with the RSI reclaiming the 60 mark and generating a bullish crossover. The ADX indicator also reflects improving strength, while the MACD histogram continues to expand positively, suggesting growing bullish participation,” Bagadia said.
Bagadia further said that the weekly price structure has also turned constructive, with Nifty gaining nearly 0.89% during the week and forming a long bullish candle after two consecutive weeks of Doji-like formations. The presence of long lower shadows in recent weekly candles indicates strong buying interest at lower levels and suggests that the prolonged consolidation phase may be nearing completion.
Bank Nifty
The Bank Nifty enters the new trading week with a cautiously positive bias despite underperforming the benchmark Nifty 50 in recent sessions. The index continues to trade comfortably above all its key moving averages, indicating that the broader trend remains positive even as momentum indicators suggest an ongoing consolidation phase. While banking stocks have witnessed selective profit booking, the overall structure remains constructive and supportive of higher levels over the medium term.
According to Bagadia, the 57,400–57,500 zone remains the immediate support area for Bank Nifty. The index has repeatedly attracted buying interest around these levels, indicating that market participants continue to accumulate on declines. As long as Bank Nifty sustains above this support zone on a closing basis, the broader bullish trend is expected to remain intact. However, a decisive breach below 57,400 could weaken sentiment and trigger a corrective move towards the 57,000–57,200 region.
“On the upside, immediate resistance is placed in the 58,400–58,500 zone. This remains the most crucial hurdle for the index in the near term. A sustained breakout above this resistance band could trigger fresh momentum buying and lead to an extension of the pullback rally towards 58,900 initially, followed by the 59,300 zone. These levels are likely to act as the next major targets if banking stocks regain leadership within the broader market,” he said.
He further went on to say that the RSI continues to move sideways, reinforcing the view that Bank Nifty is currently undergoing consolidation rather than entering a fresh downtrend. On the weekly timeframe, the index declined 0.41% and formed a small bearish candle with a long lower shadow, following two consecutive weeks of high-wave and Doji formations. This reflects indecisiveness among market participants but also highlights strong buying support at lower levels.
Overall, the undertone for Bank Nifty remains cautiously bullish. The index continues to hold above its critical support zones and long-term moving averages, suggesting that the ongoing consolidation is likely a pause within a larger uptrend rather than a reversal. Traders should closely monitor the 58,500 resistance level, as a decisive breakout above this zone would confirm renewed bullish momentum and increase the probability of a move towards 59,000 and above. Until then, a range-bound strategy with a positive bias remains the preferred approach, he added.
Sumeet Bagadia’s stocks to buy
Sumeet Bagadia recommends five shares to buy on Monday, 6 July: Paradeep Phosphates, Mahindra and Mahindra Financial Services, Orient Cement, Piramal Pharma, and UTI Asset Management Company.
1] Paradeep Phosphates: Buy at ₹146.50, Target ₹160, Stop Loss ₹139.50
Paradeep Phosphates share price is trading around 146.5, signals a clear structural trend reversal on its daily chart, executing a strong rounding-bottom breakout backed by a visible expansion in volume. The price action has aggressively reclaimed its 20, 50, and 100-day exponential moving averages, piercing through a multi-month accumulation spine to shift the structural narrative completely in favour of the bulls. Simultaneously, the daily relative strength index has accelerated past 72, confirming robust upward velocity and strong near-term buying momentum. Driven by this constructive breakout pattern, the stock is technically well-aligned to challenge an upside target of 160. To manage sudden market fluctuations or intraday mean-reversion risk, a strict stop loss should be maintained at 139.5.
2] Mahindra and Mahindra Financial Services: Buy at ₹334, Target ₹360, Stop Loss ₹318
Mahindra and Mahindra Financial Services share price is currently trading at 334, demonstrates a strong structural resurgence on the daily chart, breaking out of a persistent consolidation base with solid buying conviction. The stock has successfully reclaimed its key 20, 50, and 100-day exponential moving averages in a swift vertical move, signalling a massive shift in near-term momentum as it approaches the 200-day overhead dynamic resistance. Meanwhile, the daily relative strength index has accelerated near 66, validating significant upward velocity and strong accumulation on up-days. Backed by this impulsive trend reversal, the stock is technically well-positioned to challenge an upside target of 360. To shield the setup against sudden market mean reversions, a strict risk-management stop loss must be anchored at 318.
3] Orient Cement: Buy at ₹146, Target ₹155, Stop Loss ₹135
Orient Cement share price is currently trading at 146, indicates a vital shift in short-term market dynamics on the daily chart, staging an aggressive recovery spike right off its primary accumulation floor. The asset has broken clean above its 20-day and 50-day exponential moving averages, signalling an immediate surge in buying interest that aims to reverse a prolonged structural downtrend. Over on the indicator pane, the daily relative strength index has accelerated near 62, pointing toward an expansion in upward velocity while staying well clear of an overextended print. Backed by this impulsive momentum breakout, the stock is technically well positioned to drive toward an upside target of 155. To properly contain capital risk against sudden overhead pressure or market pullbacks, a strict stop loss should be maintained at 135.
4] Piramal Pharma: Buy at ₹176, Target ₹190, Stop Loss ₹167
Piramal Pharma share price is currently trading at 176, stock has triggered a decisive momentum breakout from its local consolidation base on the daily chart, staging a swift vertical surge that signals strong accumulation. The stock has cleared its 20, 50, and 100-day exponential moving averages in a single impulsive stroke, challenging the long-term 200-day moving average and shifting structural control back to the bulls. Meanwhile, the daily relative strength index has accelerated near 61, confirming expanding upward velocity and healthy near-term buying pressure with ample breathing room to run. Backed by this highly constructive reversal structure, the asset is technically well-aligned to push higher toward an upside target of 190. To preserve capital against unexpected intraday market pullbacks, a strict risk-management stop loss should be maintained at 167.
5] UTI Asset Management Company: Buy at ₹976, Target ₹1060, Stop Loss ₹930
UTI Asset Management Company share price is trading around 976, exhibits a steady accumulation pattern on its daily chart, signalling a potential structural turnaround as it builds a constructive baseline. The stock has successfully reclaimed its 20 and 50-day exponential moving averages in a swift breakout move, setting its sights on the higher 100 and 200-day overhead dynamic resistances. Concurrently, the daily relative strength index has accelerated near 61, validating an influx of short-term buying momentum and expanding velocity with ample headroom left to run. Driven by this structural floor formation, the asset is technically well-aligned to press forward toward an upside target of 1060. To efficiently handle downside risk against market fluctuations, a strict stop loss should be maintained at 930.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
