Two stock recommendations for today by MarketSmith India:
Krn Heat Exchanger And Refrigeration Ltd (current price: ₹849.90)
Why it’s recommended: Strong financial performance, expansion plans and capacity enhancement, established clientele, and export growth.
Key metrics: P/E: 126.20 | 52-week high: ₹1,012.00 | Volume: ₹75.52 crore
Technical analysis: Bounced back from its 100-DMA on above-average volume.
Risk factors: Customer concentration risk, supplier dependency, liquidity and working capital concerns, and intense industry competition.
Buy: ₹849.9
Target price: ₹980 in two to three months
Stop loss: ₹790
Garware Technical Fibres Ltd (current price: ₹961)
Why it’s recommended: Leadership in technical textiles, export-focused business model, and rising demand in aquaculture.
Key metrics: P/E: 39.46 | 52-week high: ₹984 | Volume: ₹30.08 crore
Technical analysis: Horizontal trendline breakout
Risk factors: Export dependency and currency volatility, raw material price volatility.
Buy at: ₹961
Target price: ₹430 in two to three months.
Stop loss: ₹363
How Nifty 50 performed on 22 July
Markets remained range-bound and closed nearly flat, reflecting a pause amid mixed cues. After a positive start, the Nifty gradually lost momentum in the first half and moved sideways for the remainder of the session. Most major sectors ended in the red, with Pharma, Realty, and Auto leading the decline. The broader indices followed suit, each shedding nearly 0.5%. The advance-decline ratio stood at 1:1, indicating a balanced market breadth.
The index successfully reclaimed both its 50-DMA and the key psychological level of 25,000, signalling a potential shift in sentiment. The intraday reversal pattern, along with the formation of a bullish candle near the 50-day SMA, suggests that the ongoing pullback may continue in the near term. On the daily chart, the relative strength index (RSI) has turned sideways and is approaching 47, indicating signs of a reversal. However, the daily MACD remains in a downtrend with a negative crossover above the zero line, highlighting that bearish undertones persist.
According to O’Neil’s methodology of market direction, market status has been downgraded to an “Uptrend Under Pressure” as Nifty breached its “50-DMA” and the “distribution day count” rose to five.
The index managed to hold above its 50-DMA in a volatile session, ultimately closing flat—a sign of indecision among traders and investors. To regain bullish momentum, a decisive breakout and sustained close above 25,300 is essential. On the downside, failure to hold above 24,900 could lead to further weakness, with potential support levels at 24,750 and 24,500 in the coming sessions.
How Nifty Bank performed yesterday
On Tuesday, the Nifty Bank started the day on a positive note. However, as the session progressed, heightened volatility led the index to slide into negative territory. A bearish candle was formed on the daily chart, with a higher-high and higher-low price structure. The index breached its 21-DMA, signalling a shift in the prevailing trend. Despite this, the market continued to display caution, with price action indicating indecision among traders.
The momentum indicator, RSI, dipped slightly and hovered around 51, reflecting a neutral market sentiment. Meanwhile, the MACD remained above its central line, though it continued to show a negative crossover. Traders should monitor key levels closely for any potential breakouts or further consolidation.
According to O’Neil’s methodology of market direction, the Nifty Bank remains in a ‘Confirmed Uptrend’, a status it has successfully maintained over the past few weeks.
The Nifty Bank is currently trading comfortably above its 50-DMA, facing resistance near 57,500. The 50-DMA continues to serve as a crucial support zone, helping to cushion near-term declines. A sustained close below this level could trigger a further downward move to 55,000. Conversely, a decisive close above 57,500 may open the door for a fresh upward move toward 58,500.
MarketSmith India 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 India Pvt. Ltd.
Sebi Registration No.: INH000015543
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.
