Buy or sell stocks: Amid escalating tensions between the US and Iran and a sharp rise in crude oil prices, the Indian stock market opened on a weak note in early trade on Wednesday. Selling pressure intensified as the session progressed, with the benchmark indices plunging more than 2%, while 13 of the 16 major sectoral indices ended in the red.
The Nifty 50 opened lower at 24,259 and slipped to an intraday low before closing at 23,897, down nearly 500 points for the day. Similarly, the BSE Sensex started with a gap-down opening at 77,816, fell to an intraday low of 76,259, and eventually settled at 76,522, marking a decline of 1,658 points.
Stock market today
Nifty 50
Nifty 50 opened on a weak note at 24,259.55, around 139.15 points lower than the previous close, reflecting a gap-down start amid negative global cues. The index remained largely range-bound during the first half and touched an intraday high of 24,300.00. However, selling pressure intensified in the second half, leading to sharp profit booking across the broader market. Nifty plunged to an intraday low of 23,805.20 before recovering marginally to close at 23,882.05, down 516.65 points (-2.12%). The sharp decline indicates a decisive shift in sentiment, with bears dominating the session after the initial consolidation.
According to Sumeet Bagadia, Executive Director at Choice Broking, the index formed a strong bearish candlestick on the daily chart, indicating aggressive selling pressure and a breakdown below its short-term moving averages. The sharp fall suggests that the recent recovery has lost momentum, while the price action reflects increased weakness as the index slipped below the crucial 24,000 psychological mark. The 23,600–23,650 zone is expected to act as immediate support, whereas 24,000–24,050 remains the key resistance. A sustained move above the resistance may trigger short-covering, while a breakdown below the support zone could extend the ongoing corrective phase.
“The RSI slipped to 48.51, indicating that momentum has weakened considerably and shifted into the neutral zone following the sharp sell-off. India VIX surged 26% to 14.68, reflecting a sharp rise in market volatility and increased investor caution after the steep decline. Market positioning in the derivatives segment remained cautious, with significant Call Open Interest concentrated at the 24,000 and 24,200 strikes, indicating strong overhead resistance, while notable Put Open Interest at the 23,900 and 23,800 strikes is expected to provide immediate support in the near term,” said Bagadia.
Bank Nifty
Bank Nifty witnessed a sharp corrective session, closing at 56,742.60, down 1,458.10 points (-2.51%). The index opened with a gap-down of around 282 points at 57,918.25 against the previous close of 58,200.70. After consolidating during the first half and touching an intraday high of 58,075.60, intense selling pressure emerged in the second half, dragging the index to an intraday low of 56,549.40 before it settled near the day’s lower range, reflecting broad-based profit booking.
Bagadia noted that Bank Nifty formed a strong bearish candlestick, indicating aggressive selling after failing to sustain above the 58,000 mark. The sharp decline has pulled the index below its short-term 20 Days EMA, while it is now hovering near the key medium-term support zone. Price action suggests that sellers remained firmly in control throughout the second half, with every minor pullback witnessing fresh supply, reflecting a decisive breakdown in near-term momentum.
“The RSI has cooled to 48.51, slipping back to the neutral zone, indicating weakening bullish momentum after the recent correction. The immediate support is placed at 56,000–56,200, while 57,200–57,500 is likely to act as the immediate resistance zone. As long as the index holds above the 56,000–56,200 support area, a technical pullback cannot be ruled out. However, a sustained move above 57,500 will be required to revive bullish sentiment, whereas a decisive break below 56,000 could extend the corrective phase in the coming sessions,” said Bagadia.
Sumeet Bagadia’s stocks to buy
Sumeet Bagadia recommends five shares to buy on Thursday, 9 July: PPAP Automotive, Inox India, Senores Pharmaceuticals, Silver Touch Technologies, and Alkyl Amines Chemicals.
1] PPAP Automotive: Buy at ₹257, Target ₹280, Stop Loss ₹243
PPAP Automotive has delivered a decisive breakout from its recent consolidation range and is currently trading around 257, indicating a fresh phase of bullish momentum. The stock is trading above its key EMAs, reflecting strong trend alignment and sustained buying interest. The recent series of higher highs and higher lows suggests that bulls remain firmly in control, while the rising short-term moving averages continue to support the ongoing uptrend.
If PPAP manages to sustain above the 265 zone, it could witness fresh buying momentum, potentially driving the stock towards the 280 target. On the downside, 243 remains a crucial support and should be maintained as the stop-loss, as any close below this level may weaken the current bullish structure.
2] Inox India: Buy at ₹1875, Target ₹2030, Stop Loss ₹1788
INOX India continues to maintain its bullish structure despite recent volatility, with the stock currently trading around 1875 after witnessing a healthy pullback from its recent peak. The price has successfully defended the 20-day EMA, indicating that buyers are actively accumulating on dips while the broader trend remains firmly positive. Additionally, the stock is trading well above its key EMAs, highlighting strong medium- and long-term momentum.
A sustained move above the support zone could trigger fresh buying interest and pave the way for an advance towards the 2030 target. On the downside, 1788 remains a crucial support and should be maintained as the stop-loss, as a close below this level may invite further profit booking and weaken the current bullish setup.
3] Senores Pharmaceuticals: Buy at ₹1409, Target ₹1500, Stop Loss ₹1340
Senores Pharmaceuticals is displaying impressive relative strength, with the stock steadily advancing to 1409 while maintaining a well-defined uptrend and trading at fresh all-time high level. The recent breakout above previous swing highs signals continued buying interest, supported by a bullish alignment of the key EMAs. Instead of showing signs of exhaustion, the stock is consolidating near its highs, which often indicates strength before the next directional move.
The rising short-term moving averages further reinforce the positive momentum and provide dynamic support during minor pullbacks. A sustained move above the recent high could attract fresh participation and drive the stock towards the 1500 target. On the downside, 1340 remains the key support and stop-loss level, as a close below this zone may delay the ongoing bullish trend.
4] Silver Touch Technologies: Buy at ₹188, Target ₹204, Stop Loss ₹178
Silver Touch Technologies is showing signs of strength after absorbing recent profit booking, with the stock currently trading around 188. The price has reclaimed momentum by holding firmly above the 20-day EMA, while the 50, 100 and 200-day EMAs continue to trend higher, confirming a positive medium-term outlook. The ongoing consolidation near the upper end of the recent trading range suggests that the stock is building a strong base before attempting another breakout.
A sustained close above the 190 zone could invite fresh buying interest and accelerate the move towards the 204 target. On the downside, 178 acts as a key support and should be used as the stop-loss, as a break below this level may lead to short-term weakness. The overall price structure continues to favour a bullish bias.
5] Alkyl Amines Chemicals: Buy at ₹1853, Target ₹2000, Stop Loss ₹1765
Alkyl Amines Chemicals has regained bullish momentum after a sustained recovery from lower levels and is currently trading around 1853. The stock has formed a strong base above its key moving averages, with the 20-day EMA moving higher and the 50, 100 and 200-day EMAs reinforcing the broader positive trend. Recent price action indicates improving buying interest, as the stock continues to register higher lows while absorbing supply near resistance.
A decisive close above 1800 zone has trigger a fresh breakout and open the door for an advance towards the 2000 target. On the downside, 1765 remains a critical support and stop-loss level. As long as the stock holds above this level, the overall technical structure remains favorable, with momentum indicating the potential for further upside.
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.
