Two stock recommendations by MarketSmith India:
Jio Financial Services Ltd (current price: ₹321.10)
Why It’s recommended: Rapid revenue expansion and diversification, business scale-up, and ecosystem leverage.
Key metrics: P/E: 125.59 | 52-week high: ₹ 363 | Volume: ₹848 crore
Technical analysis: Trending above all its key moving averages, 50-DMA bounce back, strong institutional holding.
Risk factors: Valuation concern and execution pressure, intense competition, regulatory hurdles, and cost escalation.
Buy: ₹310-320
Target price: ₹380 in two to three months
Stop loss: ₹298
Biocon Ltd (current price: ₹397.95)
Why it’s recommended: Stable biosimilar performance, subsidiary Syngene showing strong growth, and robust research and development.
Key metrics: P/E: 47.06 | 52-week high: ₹406 | Volume: ₹217 crore
Technical analysis: Trending above all its key moving averages, cup-with-handle pivot breakout.
Risk factors: Weak underlying profitability, structural pressure in generics and research services segments, execution risk, high operating leverage.
Buy at: ₹380-395
Target price: ₹454 in two to three months.
Stop loss: ₹368
How Nifty 50 performed on 29 July
On Tuesday, the Nifty opened on a weak note but recovered steadily throughout the session, closing near the day’s high. This intraday rebound led to the formation of a bullish engulfing candle on the daily chart, indicating a potential reversal. All major sectoral and broader market indices ended in positive territory. Notably, realty, pharma, metal, and energy sectors outperformed, while IT stabilized and closed flat. Market breadth improved significantly, with the advance-decline ratio turning positive and settling at 2:1.
From a technical standpoint, the index found support near 24,600 and staged a recovery from the day’s low. Despite the rebound, it continues to trade approximately 0.90% below its 50-DMA, indicating a prevailing negative bias. The relative strength index (RSI) has begun to tilt upward, suggesting a slight improvement in momentum. However, it remains within the bearish zone. Additionally, the MACD continues to trade below the central line with a negative crossover, reinforcing the cautious near-term outlook.
According to O’Neil’s methodology of market direction, market status has been downgraded to an “Uptrend Under Pressure” as the Nifty breached its “50-DMA” and the “distribution day count” rose to five.
The Nifty 50 found support near 24,600 on Tuesday and ended the session with a positive bias, closing near the day’s high. Looking ahead, the price zone of 24,600-24,480 will be crucial, as it represents a strong support area that could anchor any near-term pullbacks. On the upside, immediate resistance is seen at 25,000, followed by 25,300. A sustained move beyond these levels will be essential to confirm a bullish continuation.
How Nifty Bank performed yesterday
On Tuesday, the Nifty Bank opened on a weak note but recovered steadily throughout the session. It closed near the day’s high and formed a bullish candlestick on the daily chart. Both private and PSU Banking indices ended in positive territory, with the recovery largely driven by strength in HDFC Bank. FINNIFTY index also traded with a positive bias, gaining 0.32% and forming another bullish candle on the daily chart, reflecting improved sentiment across the broader financial space.
Technically, the Nifty Bank continues to trade below its 50-DMA and closed beneath it on Tuesday, reflecting sustained short-term weakness. The relative strength index (RSI) has turned upward and is currently positioned around 45, indicating a modest improvement in momentum. However, the MACD remains in a negative crossover, suggesting upside strength is limited.
Despite this, according to O’Neil’s methodology of market direction, the Nifty Bank remains in a ‘Confirmed Uptrend,’ a status it has maintained consistently over the past several weeks.
This major sectoral index continues to trade in a sideways pattern, remaining range-bound between 55,800 and 57,500 over the past few weeks. On the downside, 55,800 serves as a critical support level. A decisive breach below this zone could lead to further weakness toward 55,200-55,000. On the upside, immediate resistance is placed near 56,400. A sustained breakout above this level could open the door for a move toward 57,000-57,500. Until then, the index is likely to remain choppy and directionless in the near term.
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.
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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.
