The Sensex snapped its three-day winning streak to close at 83,536.08, down 176 points, or 0.21 per cent. The Nifty 50 settled with a loss of 46 points, or 0.18 per cent, at 25,476.10.
Top 3 Stocks Recommended by Ankush Bajaj for 10 July
Buy: Divi’s Laboratories (DivisLab) — Current Price: ₹6,983
Why it’s recommended:Divi’s Laboratories is showing strong upward momentum, supported by a robust technical setup. The stock is trading well above all its key moving averages, confirming a sustained bullish trend. Thedaily RSI stands at 71, reflecting strong momentum while still sustaining in the bullish territory without being excessively overbought. The overall structure points to continued upward movement as the stock maintains higher lows and strong buying interest on dips.
Key metrics: Support (stop loss): ₹6,910
Pattern: Momentum-driven breakout continuation above major averages
RSI: 71 (indicating strong bullish momentum)
Technical analysis:The stock remains in a powerful uptrend and is holding above its key short- and long-term moving averages, reinforcing trend strength. With consistent demand and positive price structure, the next upside move toward ₹7,125– ₹7,140 looks well supported. Traders are advised to maintain positions as long as the price holds above the ₹6,910 support level.
Risk factors:Any close below ₹6,910 would weaken the current setup. Watch for signs of fatigue or low-volume rallies, which may hint at short-term exhaustion.
Buy at: ₹6,983
Target price: ₹7,125– ₹7,140
Stop loss: ₹6,910
Why it’s recommended:IEX has recently broken out of a triangle pattern on the lower timeframes, suggesting a renewed push higher after a phase of consolidation. Thedaily RSI is at 69, just shy of overbought levels, confirming strong momentum. This combination of breakout and positive momentum increases the probability of sustained gains in the near term.
Key metrics: Support (stop loss): ₹202,
Pattern: Triangle breakout on intraday charts
RSI: 69 (bullish zone)
Technical analysis:The breakout from the triangle pattern is supported by improving volumes and strong follow-through. The price action suggests the potential for a move toward ₹220– ₹222 in the short term. As long as the stock sustains above ₹202, the bullish momentum is expected to continue.
Risk factors:A fall below ₹202 may invalidate the breakout structure. Traders should also monitor whether the breakout is supported by rising volumes.
Buy at: ₹208
Target price: ₹220– ₹222
Stop loss: ₹202
Buy: IIFL Finance — Current Price: ₹508.55
Why it’s recommended:IIFL Finance has shown a sharp upward move afterbreaking out of a rectangle pattern on the 15-minute chart, indicating a fresh bullish phase. Thedaily RSI is elevated at 72, which confirms strong buying interest and a possible continuation of the trend. The overall structure supports a short-term rally with minor dips being actively bought into.
Key metrics: Support (stop loss): ₹498
Pattern: Rectangle breakout on 15-min chart
RSI: 72 (strong bullish momentum)
Technical analysis: The breakout has occurred with clean price action, and follow-through buying suggests higher levels are likely. With the bullish setup confirmed and momentum indicators supporting the move, the stock may advance toward ₹530– ₹532 in the short term. A close below ₹498 would weaken the trend.
Risk factors: Watch for volume tapering or failure to hold above ₹505 levels, which may invite quick profit-taking.
Buy at: ₹508.55
Target price: ₹530– ₹532
Stop loss: ₹498
Market Wrap
On Wednesday, the Indian stock market traded within a narrow range, reflecting a lack of broad conviction but evident interest in select defensives. While overall momentum remained muted, a defensive tilt helped the indices stay afloat, highlighting investors’ cautious optimism amid sectoral churn.
The Nifty 50 managed to hold its ground, edging up just 46.40 points or 0.18% to settle at 25,476.10, while the BSE Sensex added 176.43 points or 0.21% to end at 83,536.08. Bank Nifty saw limited movement, gaining 42.75 points or 0.07% to close at 57,213.55, with buying concentrated in a few heavyweight financial stocks.
Sectoral activity showed a mix of pressure and resilience. Cyclical sectors took a backseat, with Realty down 1.49%, Metal slipping 1.40%, and Oil & Gas losing 1.25% as traders booked profits. On the other hand, defensive sectors provided some cushion — FMCG led the pack with a gain of 0.80%, Auto edged up 0.38%, and Pharma posted a marginal rise of 0.19%, indicating a tilt toward stability amid uncertainty.
In the stock-specific action, Shriram Finance led the gainers with a 1.81% jump on strong institutional interest. Bajaj Finance moved up by 1.40%, while Hindustan Unilever advanced 1.28%, driven by consistent demand for high-quality names. Conversely, some recent outperformers came under selling pressure —HCL Tech dropped 2.00%, Tata Steel declined 1.83%, and Hindalco slipped 1.70%, pointing to sector-specific profit booking.
Nifty Technical Analysis Daily & Hourly
The Nifty ended Wednesday’s session on a subdued note, slipping 46.40 points or 0.18% to close at 25,476.10. A Doji candlestick was formed on the daily chart for the second consecutive day, signaling continued indecision among traders following the recent uptrend. Despite the minor loss, the broader bullish structure remains intact, although momentum appears to be slowing.
From a technical perspective, the index is still trading comfortably above its key moving averages, with the 20-day simple moving average placed at 25,220 and the 40-day exponential moving average at 24,994. This setup indicates that the medium-term trend is still positive. However, momentum indicators are beginning to show signs of fatigue. The Relative Strength Index (RSI) on the daily chart has eased to 60, reflecting weakening upward momentum, while the MACD has slipped slightly below its signal line, reading 200 versus 203. This crossover suggests that bullish momentum is beginning to wane, increasing the risk of a pause or consolidation in the near term.
The intraday picture presents a similar story of softening strength. On the hourly chart, Nifty is hovering just above its 20-hour moving average of 25,469 and the 40-hour EMA of 25,467. The hourly RSI has dropped to 47, close to neutral territory, and the MACD, while still in positive territory at 13.42, remains below its signal line at 13.82. These indicators point to declining short-term momentum and suggest a potential for sideways price action or minor pullbacks.
In the derivatives space, the options data paints a distinctly bearish picture. Total Call open interest now stands at 18.16 crore, significantly higher than the 12.80 crore in Puts, resulting in a net difference of –5.36 crore. This clearly reflects a negative bias in positioning. Additionally, the change in open interest reinforces this view, with Calls seeing an increase of 4.39 crore contracts while Puts witnessed a marginal decline of 7.62 lakh contracts. The net shift of –4.47 crore contracts confirms fresh Call writing and a lack of strong Put support, suggesting that traders are bracing for continued resistance near current levels.
Strike-wise data shows that the 25,500 level has become a key battleground. It holds the highest Call open interest as well as the most active Call additions, making it a firm resistance zone. Interestingly, it also houses the highest Put open interest, indicating a tug-of-war between bulls and bears at this strike. A decisive move above or below this level may trigger a directional breakout.
On the volatility front, India VIX dipped by 2.09% to 11.94, suggesting that market participants remain largely composed and are not aggressively pricing in downside risk. Overall market breadth appeared neutral to mildly negative, in line with the Doji formation and consolidative tone.
In summary, while the Nifty’s medium-term trend remains positive and supported by moving averages, the short-term indicators suggest a slowing pace and a possible consolidation phase. The repeated Doji formations, soft intraday indicators, and bearish derivatives data highlight growing caution. Unless the index breaks above 25,550–25,600 decisively, the market may continue to trade within a range of 25,200 to 25,600. Traders are advised to remain cautious and consider long positions only on dips toward the 25,200–25,250 zone with strict stops below 25,150. A breakout above 25,600 would be needed to confirm renewed directional momentum.
Ankush Bajaj is a Sebi-registered research analyst. His registration number is INH000010441.
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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.
