Additionally, global uncertainty surrounding the India-US trade negotiations and the absence of fresh domestic triggers contributed to subdued investor sentiment.
With muted earnings momentum and caution prevailing across sectors, the market remained under pressure throughout the session, reflecting a broadly negative undertone.
MarketSmith India’s Best stock recommendations for today
Buy: Cipla Ltd (current price: ₹1,572)
- Why Cipla is recommended: Strong presence in chronic and acute therapy segments, robust US and India business with healthy margin profile, and steady R&D investments in complex generics and respiratory products.
- Key metrics
- P/E: 23.53
- 52-week high: ₹1,702.05
- Volume: ₹599 crore
- Technical analysis: Reclaimed its 200-DMA on above average volume
- Risk factors: Regulatory and compliance risk, pricing pressure in the US generics market, and dependency on select products and geographies
- Buy: ₹1,550
- Target price: ₹1,700 in 2-3 months
- Stop loss: ₹1,460
Buy: Vijaya Diagnostic Centre Ltd (current price: ₹1,141.35)
- Why Vijaya Diagnostic Centre is recommended: Strong volume led revenue growth, geographic and network expansion, strong capital efficiency (ROCE and ROE).
- Key metrics
- P/E: 81.36
- 52-week high: ₹1,275
- Volume: ₹281 crore
- Technical analysis: 200-DMA bounce, trending above all its key moving averages
- Risk factors: High valuation premium, flat long-term growth, working capital stress, promoters’ dilution of equity.
- Buy at: ₹1,120
- Target price: ₹1,415 in 2-3 months
- Stop loss: ₹999
Nifty 50: How the benchmark index performed on 28 July
On Monday, the Nifty 50 opened on a weak note with a gap-down opening and remained under pressure throughout the session, forming a “lower-high and lower-low” price structure on the daily chart, indicating a sign of continued bearish momentum.
Barring Pharma and FMCG, all major sectoral indices, including broader market segments, traded in the red. The volatility index, India VIX, spiked 7% on the third consecutive day, reflecting rising uncertainty. Market breadth was distinctly negative, with the advance-decline ratio skewed toward decliners at approximately 1:3.
From a technical standpoint, the index is trading 1.48% below its 50-DMA, reflecting a clear negative bias. The relative strength index (RSI) continues to decline and has slipped below 37, signaling weakening momentum and a prevailing bearish trend.
Additionally, the MACD has maintained its negative crossover and has now moved below the central line, further confirming the downside momentum. This overall setup indicates continued selling pressure and the potential for further weakness in the coming days.
According to O’Neil’s methodology of market direction, the market status has been downgraded to an “Uptrend Under Pressure” as Nifty breached its “50-DMA” and the “distribution day count” rising to five.
Nifty 50 remained volatile with a negative bias on Monday, ending the session in the red. The overall trend and market sentiment are likely to stay weak as long as the index continues to trade below its 50-DMA.
A sustained move below this level could trigger further downside, potentially dragging the index toward 24,200-24,000 in the near term. On the upside, strong resistance is seen at 25,000, followed by 25,300.
How did Nifty Bank perform yesterday?
On Monday, this major sectoral index opened on a weak note and extended its downward move amid a volatile trading session, forming a bearish candlestick with a “lower-high and lower-low” price structure on the daily chart.
Both private and PSU banks remained under pressure and ended in negative territory. Kotak Mahindra Bank was the top laggard, while ICICI Bank bucked the trend and closed marginally in the green. The FINNIFTY index also traded with a negative bias, slipping 0.72% and forming another bearish candle on the daily chart.
Technically, Bank Nifty breached its 50-DMA and closed below it on Monday, indicating a shift in short-term trend momentum. The relative strength index (RSI) is trending downward and is currently positioned around 45, reflecting weakening strength.
Additionally, the MACD has maintained a negative crossover and is trending below the signal line, further confirming bearish sentiment. This technical setup suggests continued pressure on the index unless a strong reversal emerges in the near term.
According to O’Neil’s methodology of market direction, Bank Nifty remains in a ‘Confirmed Uptrend’, a status it has successfully maintained over the past few weeks.
Nifty Bank found support near 56,000 and managed to close just above it. Going forward, 56,000 remains a crucial support level, and a decisive break below this zone could trigger further downside toward 55,200–55,000 in the coming sessions. On the upside, immediate resistance is seen around 56,400, and a sustained move above this level will be essential to halt further weakness and stabilize the trend.
MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. Trade name: William O’Neil India Pvt. Ltd. (Sebi Registered Research Analyst Registration No.: INH000015543)
Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors.
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.
