Stocks to buy or sell: Indian benchmark indices extended their gains for a third consecutive session on Friday, July 3, buoyed by robust buying in IT and pharmaceutical stocks, even as global market cues remained mixed.
The Sensex advanced 262 points, or 0.34%, to end the day at 77,763.91, while the Nifty 50 rose 95 points, or 0.39%, to close at 24,270.85.
Stock market next week
Nifty 50
The benchmark Nifty 50 enters the upcoming trading week with a positive bias after extending its gains for the third consecutive session and successfully breaking out above the crucial 24,200 resistance zone. The index has shown resilience despite intermittent profit booking and continues to trade above its key moving averages, indicating that the broader trend remains constructive. Improved market sentiment, easing volatility, and sustained participation from both institutional and retail investors have further strengthened the market’s undertone.
According to Sumeet Bagadia, Executive Director at Choice Broking, the 24,150–24,200 zone is expected to act as the immediate support area, as it coincides with the recent breakout zone, the falling resistance trendline, and the 100-day EMA. As long as Nifty sustains above this range, the bullish structure is likely to remain intact and any corrective decline may attract fresh buying interest. A decisive break below 24,150 could result in consolidation towards the 24,050–24,000 zone, which remains a crucial short-term support area.
“On the upside, the index faces immediate resistance near 24,400, which coincides with the 200-day EMA. A sustained move above this hurdle could strengthen bullish momentum and pave the way for an advance towards 24,600, which marks the April swing high and a significant resistance level on the higher timeframe. Momentum indicators continue to support the positive outlook, with the RSI reclaiming the 60 mark and generating a bullish crossover. The ADX indicator also reflects improving strength, while the MACD histogram continues to expand positively, suggesting growing bullish participation,” said Bagadia.
Bank Nifty
The Bank Nifty enters the new trading week with a cautiously positive bias despite underperforming the benchmark Nifty 50 in recent sessions. The index continues to trade comfortably above all its key moving averages, indicating that the broader trend remains positive even as momentum indicators suggest an ongoing consolidation phase. While banking stocks have witnessed selective profit booking, the overall structure remains constructive and supportive of higher levels over the medium term.
Bagadia noted that the 57,400–57,500 zone remains the immediate support area for Bank Nifty. The index has repeatedly attracted buying interest around these levels, indicating that market participants continue to accumulate on declines. As long as Bank Nifty sustains above this support zone on a closing basis, the broader bullish trend is expected to remain intact. However, a decisive breach below 57,400 could weaken sentiment and trigger a corrective move towards the 57,000–57,200 region.
“On the upside, immediate resistance is placed in the 58,400–58,500 zone. This remains the most crucial hurdle for the index in the near term. A sustained breakout above this resistance band could trigger fresh momentum buying and lead to an extension of the pullback rally towards 58,900 initially, followed by the 59,300 zone. These levels are likely to act as the next major targets if banking stocks regain leadership within the broader market.
The RSI continues to move sideways, reinforcing the view that Bank Nifty is currently undergoing consolidation rather than entering a fresh downtrend. On the weekly timeframe, the index declined 0.41% and formed a small bearish candle with a long lower shadow, following two consecutive weeks of high-wave and Doji formations. This reflects indecisiveness among market participants but also highlights strong buying support at lower levels,” Bagadia added.
He further went on to say that the undertone for Bank Nifty remains cautiously bullish. The index continues to hold above its critical support zones and long-term moving averages, suggesting that the ongoing consolidation is likely a pause within a larger uptrend rather than a reversal. Traders should closely monitor the 58,500 resistance level, as a decisive breakout above this zone would confirm renewed bullish momentum and increase the probability of a move towards 59,000 and above. Until then, a range-bound strategy with a positive bias remains the preferred approach.
Stocks to buy
Sumeet Bagadia has recommended three stocks to buy on Monday, 22 June. The three stock picks by Bagadia are – Jayaswal Neco Industries, NTPC Green Energy, and IDFC First Bank.
1] Jayaswal Neco Industries: Buy at ₹91 | Target Price: ₹100 | Stop Loss: ₹86
2] NTPC Green Energy: Buy at ₹95.50 | Target Price: ₹105 | Stop Loss: ₹90
3] IDFC First Bank: Buy at ₹80.50 | Target Price: ₹86 | Stop Loss: ₹77.50
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.
