Two stock recommendations by MarketSmith India for 8 July:
- Why it’s recommended: Volume recovery, tailwind from home care segment, strong revenue growth outlook, product innovation.
- Key metrics: P/E: 70.02, 52-week high: ₹ 1542, volume: ₹ 979 cr
- Technical analysis: Trending above all its key moving averages, bullish pattern breakout.
- Risk factors: Margin pressure due to higher input cost, urban consumption slowdown, high valuation multiple.
- Buy at: ₹ 1,268
- Target price: ₹ 1,450 in two to three months
- Stop loss: ₹ 1,160
Also Read: India’s share in global market cap up from recent low—but risks remain
Buy: Hindustan Unilever Ltd (current price: ₹2410.40)
- Why it’s recommended: Strategic diversification and product portfolio transformation, channel expansion, digital investment, margin improvement.
- Key metrics: P/E: 53.20, 52-week high: ₹ 3,035, volume: ₹ 647 crore
- Technical analysis: Base formation, trendline breakout.
- Risk factors: Higher input cost and margin pressure, urban demand weakness, competitive price sensitivity.
- Buy at: ₹ 2,410
- Target price: ₹ 2,820 in two to three months
- Stop loss: ₹ 2,250
Also Read: Optimistic HUL targets 10% earnings growth over medium-to-long term
Nifty 50: How the Benchmark Index Performed
On Monday, Nifty50 traded within a narrow intraday range of 83 points, oscillating between 25,490–25,407, and ended the session on a flat note. The price action resulted in the formation of a narrow-range candle on the daily chart, reflecting indecision amid low volatility. On the sectoral front, FMCG and consumption stocks outperformed, led by gains in HUL, Godrej Consumer, and ITC. In contrast, most other key sectoral indices and broader market segments closed flat to negative, causing the market breadth to weaken, with the advance-decline ratio settling at 2:3.
Technically, Nifty50 continues to maintain a structurally bullish setup, trading firmly above its key moving averages. The recent price action suggests a phase of short-term consolidation. The relative strength index (RSI) on the daily chart is hovering near 61, reflecting a neutral-to-positive bias without entering overbought territory. Simultaneously, the MACD remains in positive territory, with a bullish crossover intact and trending flat above the central line.
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 11 June 2024.
Nifty50 witnessed a volatile trading session on Monday, reflecting investor caution ahead of key global macroeconomic events. Despite the intraday fluctuations, the broader market structure remains constructively bullish. The key support levels are situated around 25,200, followed by 25,000, which are likely to cushion any downside pressure. On the upside, resistance is observed near 25,600–25,700, and a decisive move beyond this range could pave the way for a renewed upward trajectory.
Also read: Wealth-management-share-price-jane-street-sebi-ban-indian-financial-market-11751877618717.html” data-vars-page-type=”story” data-vars-link-type=”Manual”>For Nuvama Wealth, Jane Street impact is more about sentiment than financials
How did Nifty Bank Perform?
Bank Nifty witnessed a volatile, roller-coaster trading session on Monday and ended with a marginal loss of 0.15%. After opening on a weak note, the index oscillated between positive and negative territory throughout the day. The price action resulted in the formation of a doji candle with a long upper shadow on the daily chart, signaling profit booking at higher levels and indecision near resistance zones. Mirroring this trend, Nifty Financial Services (FINNIFTY) also traded volatile and closed slightly lower, declining by 0.12%.
Technically, Bank Nifty remains positioned above all its key moving averages across multiple timeframes, reaffirming the strength of its broader bullish structure. However, short-term momentum indicators point toward potential consolidation. The relative strength index (RSI) on the daily chart is trending downward and currently hovers around 57, indicating a loss of upward momentum. Additionally, the MACD has turned negative, accompanied by a bearish crossover, further supporting the possibility of a near-term pause or corrective phase within the ongoing uptrend.
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.
Bank Nifty exhibited a choppy intraday session yet successfully held its previous day’s low and closed flat. The broader structure remains bullish, with the index consolidating in a range of 56,500–57,500. A sustained move above 57,000 could propel it toward 58,500–59,000 in the upcoming sessions. Conversely, if 57,000 fails to hold, volatility may intensify, confining the index within 57,000–56,000.
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, developed 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.
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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.