Buy or sell stocks: Indian benchmarks, the Sensex and the Nifty 50, declined for the fourth straight session on Thursday, July 23, as rising crude oil prices, fuelled by escalating tensions in the Middle East, continued to weigh on investor sentiment.
The Sensex shed 364 points, or 0.47%, to close at 76,391.39, while the Nifty 50 fell 127 points, or 0.53%, to settle at 23,869.60.
Stock market today
Nifty 50
Nifty 50 opened at 23,904 and initially witnessed buying momentum, climbing to an intraday high of 23,990 during the early part of the session. However, profit booking emerged near the 23,990 zone, leading to sustained selling pressure throughout the morning. The index subsequently broke below the day’s low and slipped to an intraday low of 23,807, where buying interest resurfaced and helped it recover part of the losses. Despite the late pullback, Nifty settled at 23,869.60, down 126.65 points (-0.53%), reflecting continued weakness in the broader market. Overall, the day’s price action indicated that sellers remained in control, while buyers managed to defend the 23,800 region, preventing a sharper decline.
According to Sumeet Bagadia, Executive Director at Choice Broking, Nifty formed a small-bodied Doji candle on the daily timeframe, signalling indecision after a volatile trading session.
“The index has now broken below the 20, 50, 100, and 200-day EMAs, highlighting deterioration in the overall technical structure and indicating that bears continue to dominate the trend. The RSI slipped to 45.36, reflecting weakening momentum, while India VIX rose 1.37% to 13.47, pointing to slightly elevated market volatility. Immediate support is placed at 23,700–23,750, whereas 23,950–24,000 is likely to act as the first resistance zone. Unless the index reclaims higher levels, it is expected to trade within the 23,700–24,000 range, with the overall bias remaining Sideways to Bearish,” said Bagadia.
Bank Nifty
Bank Nifty opened at 56,796 and attempted to extend its recovery during the opening hour, touching an intraday high of 56,930. However, the index failed to sustain above higher levels and remained confined within a narrow 15-minute consolidation range before witnessing a decisive breakdown. This triggered sharp intraday selling, dragging the index to a low of 56,374, where buying interest emerged around the 56,400 zone. The recovery from lower levels helped trim some losses, but the index eventually settled at 56,592, down 534.80 points (-0.94%). The overall intraday structure reflected persistent selling pressure, with buyers only stepping in near important support levels.
Bagadia noted that the index has formed a bearish candle with a long lower shadow, indicating that buyers attempted to absorb selling pressure near the day’s lows.
“The index is currently taking support near its 200-day EMA on the daily chart, making this a crucial level for the short-term trend. Immediate support is placed at 56,100–56,200, while 56,900–57,000 remains the immediate resistance zone. A sustained move above the resistance area could improve near-term sentiment and encourage fresh buying interest, whereas a decisive breakdown below support may lead to further downside. Until a clear directional move emerges, Bank Nifty is expected to trade within the 56,100–57,000 range, with the overall bias remaining Sideways to Bearish,” he added.
Sumeet Bagadia’s stocks to buy
Sumeet Bagadia recommends five breakout shares to buy on Friday, 24 July: Kabra Extrusion Technik, Ask Automotive, Pricol, Nuvama Wealth Management, and Manali Petrochemicals.
1] Kabra Extrusion Technik: Buy at ₹351, Target ₹375, Stop Loss ₹333
Kabra Extrusion is witnessing a strong momentum-driven rally, currently trading around ₹351 after delivering a decisive breakout above its previous 52-week high near ₹330. The recent up move has been accompanied by a noticeable rise in volumes, indicating strong institutional participation and sustained buying interest. Technically, the stock is trading comfortably above all its major moving averages, reinforcing the prevailing bullish trend. A key positive development is the 100-day EMA crossing above the 200-day EMA, confirming a medium-term bullish crossover and strengthening the overall outlook.
The stock continues to form a higher high–higher low structure, suggesting that buyers remain firmly in control. As long as it sustains above the breakout zone, the trend is likely to remain positive. ₹333 should act as a crucial stop-loss level, while sustained strength could drive the stock towards the ₹375 target.
2] Ask Automotive: Buy at ₹503, Target ₹535, Stop Loss ₹481
ASK Automotive is displaying a gradual yet steady uptrend, currently trading around ₹503 while consistently forming a higher high–higher low price structure. The stock has witnessed sustained buying interest over the past few weeks and is now approaching its previous swing high and supply zone, making this an important breakout area. On the technical front, the stock is trading above all key moving averages, with the 100-day EMA nearing a bullish crossover above the 200-day EMA, which could further strengthen the medium-term trend.
The RSI is positioned around 69, reflecting strong momentum without any major signs of weakness. A decisive move above the current resistance zone may trigger fresh buying interest and extend the ongoing rally. ₹481 remains a key support and stop-loss level, while sustained momentum could propel the stock towards the ₹535 target.
3] Pricol: Buy at ₹626, Target ₹666, Stop Loss ₹597
Pricol has been consolidating within a broad range over the past few weeks, and the recent price action indicates that the stock may be preparing for a fresh breakout. Currently trading around ₹626, the stock has taken support near its 50-day EMA and bounced strongly, closing with gains of over 3% in the latest trading session. The stock is now trading close to its recent swing high, suggesting renewed buying momentum. Technically, it remains above all the major moving averages, indicating that the broader trend continues to favour the bulls.
The RSI near 60.65 reflects improving momentum with scope for further upside. If the stock manages to sustain above the current resistance zone, it could witness a fresh leg of the rally. ₹597, which aligns closely with the 50-day EMA, should act as a strong stop-loss, while ₹666 remains the immediate upside target.
4] Nuvama Wealth Management: Buy at ₹1947, Target ₹2100, Stop Loss ₹1854
Nuvama Wealth Management continues to exhibit exceptional price strength, currently trading around ₹1,947 while hovering close to its all-time high levels. The stock has been maintaining a strong bullish structure with a consistent higher high–higher low formation, reflecting sustained buying interest. Technically, it is trading comfortably above all major moving averages, with the 20-day EMA providing reliable dynamic support during every short-term correction. This repeated bounce from the 20-day EMA highlights the stock’s underlying strength and confirms that buyers continue to dominate the trend.
The RSI near 64 indicates healthy momentum without entering an extreme overbought zone. A sustained move above the recent highs could trigger the next leg of the rally. ₹1,854 should act as the key stop-loss level, while the ongoing momentum has the potential to drive the stock towards the ₹2,100 target.
5] Manali Petrochemicals: Buy at ₹64.8, Target ₹70, Stop Loss ₹61.9
Manali Petrochemicals has shown encouraging signs of a trend reversal after reclaiming its 20-day EMA, with the stock currently trading around ₹64.80. It has now moved above all the key moving averages, reflecting improving price strength and renewed buying interest. A notable technical development is that the 100-day EMA is on the verge of crossing above the 200-day EMA, which would further strengthen the medium-term bullish outlook. The recent breakout has also been supported by improving price action, suggesting that the stock is gradually emerging from a prolonged consolidation phase.
Momentum indicators remain positive, and the stock appears well-positioned for further upside as long as it sustains above the immediate support levels. ₹61.90 should be maintained as a strict stop-loss, while continued buying momentum could lead the stock towards the ₹70 target in the coming sessions.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
