Top 3 stocks recommended for today by Ankush Bajaj
Piramal Enterprises Ltd (current price: ₹1,295.80)
Why it’s recommended: The stock has shown strength by closing 1.36% higher in the previous session despite a broader market sell-off. The daily RSI is at 63 and the MACD is above the zero line, both indicating increasing bullish strength. Once the stock sustains above ₹1,320, the setup suggests a potential breakout toward fresh lifetime highs.
Breakout zone: Sustained move above ₹1,320 could open new highs
Pattern: Strength continuation against broader market weakness
MACD: Positive and rising above zero line
RSI: Daily RSI at 63, suggesting bullish momentum
Technical analysis: With strong momentum and resistance nearing breakout levels, the stock appears poised for an upward continuation toward ₹1,355 in the near term.
Risk factors: A close below ₹1,264 will invalidate the current bullish setup and may signal short-term weakness. A disciplined stop-loss at ₹1,264 is recommended
Buy at: ₹1,295.80
Target price: ₹1,355
Stop loss: ₹1,264
ICICI Bank Ltd (current price: ₹1,488.40)
Why it’s recommended: ICICI Bank stock is showing strong bullish momentum with the daily RSI at 65 and MACD at 13. On lower time frames, the stock has formed a solid base around ₹1,474, which is expected to support further upward movement. The setup suggests potential for a short-term rally toward ₹1,504.
Breakout zone: Built a firm base at ₹1,474 on lower timeframes
Pattern: Base formation with follow-through momentum
MACD: Positive at 13, showing strong trend strength
RSI: Daily RSI at 65, indicating positive momentum
Technical analysis: With solid momentum and base formation in place, ICICI BANK appears well-positioned to rally toward ₹1,504 in the near term.
Risk factors: A close below ₹1,480 will invalidate the current bullish setup and may signal short-term weakness. A disciplined stop-loss at ₹1,480 is recommended
Buy at: ₹1,488.40
Target price: ₹1,504
Stop loss: ₹1,480
Cipla Ltd (current price: ₹1,572)
Why it’s recommended: Cipla stock has broken out of a rectangle consolidation pattern on the daily chart, confirming bullish continuation. The daily RSI is at 70 and MACD at 5, both pointing to strong underlying momentum. This technical setup supports further upside toward the ₹1,615 level.
Breakout zone: Rectangle breakout confirmed on daily chart
Pattern: Consolidation breakout with momentum confirmation
MACD: Positive at 5, showing a strong uptrend
RSI: Daily RSI at 70, reflecting bullish strength
Technical analysis: With the price breaking out from a defined range and supported by strengthening momentum, the stock is favorably positioned for a move toward ₹1,615.
Risk factors: A close below ₹1,548 will invalidate the current bullish setup and may signal short-term weakness. A disciplined stop-loss at ₹1,548 is recommended
Buy at: ₹1,572.00
Target price: ₹1,615
Stop loss: ₹1,548
How the market performed on 28 July
Losses were spread across sectors, underscoring the bearish mood. The realty sector plunged 4.07%, while PSU banks and metals declined 1.20% and 1.15%, respectively, on the back of weak institutional sentiment and broader market uncertainty.
On the defensive side, some sectors managed to stay afloat. The pharma index rose 0.43%, FMCG edged up 0.28%, and healthcare posted a 0.09% gain as investors rotated into safer bets amid heightened volatility.
Shriram Finance led the gainers with a 2.86% rise, followed by Cipla at 2.58%, and Hero MotoCorp, which advanced 1.43%, supported by buying in healthcare and defensives.
However, the overall market tone remained weak, with heavyweight laggards weighing on the indices. Kotak Bank suffered a steep decline of 7.44% amid concerns around asset quality and stretched valuations. Bajaj Finance dropped 3.64%, and Wipro fell 3.53%, adding to the downward drag.
Nifty technical analysis: daily & hourly
The Nifty ended Monday’s session on a weak note, down 156.10 points or 0.63% at 24,680.90. As highlighted in the previous update, a breakdown below the psychological level of 25,000 was likely to trigger further downside toward 24,700-24,500.
The index has now followed through on that bearish setup, validating the expected move and indicating growing selling pressure. With the latest close, Nifty has firmly slipped below all key moving averages, including the 20-day SMA at 25,217 and the 40-day EMA at 25,023. On the intraday chart as well, it remains under pressure, trading below both the 20-hour SMA (24,881) and the 40-hour EMA (24,947), highlighting persistent weakness across timeframes.
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Momentum indicators are clearly reflecting this bearish shift. The daily RSI has cooled off sharply to 37, indicating a lack of buying strength and confirming the loss of upward momentum. On the hourly chart, RSI has plunged to an extremely oversold level of 20, which may result in minor technical bounces but doesn’t negate the prevailing weakness. The MACD readings also align with this bearish tone, with the daily MACD dropping to 57 and the hourly MACD further deteriorating to 103, reinforcing the idea that the downtrend has gained traction.
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In the derivatives segment, the options data has turned decisively bearish. The total call open interest stands at 22.90 crore, significantly higher than the put OI at 12.03 crore, with a wide net difference of 10.88 crore — clearly reflecting heavy call writing and a lack of aggressive put writing.
Changes in OI continue to support the bearish trend, with call OI rising by 3.82 crore and put OI by only by 1.05 crore, resulting in a net change of -2.77 crore. The put-call ratio (PCR) has dropped to 0.53, indicating aggressive call buildup and growing bearish sentiment.
Strike-wise positioning reveals that the highest call OI is placed at 25,000, while fresh writing has emerged at the 24,800 strike, making both levels near-term resistance zones. On the put side, maximum open interest is seen at the 24,000 strike, while the 24,600 strike has seen fresh additions, suggesting it may act as immediate support.
India VIX remains relatively stable, but the broader setup now favours the bears unless a strong recovery above 25,000 occurs. Until then, rallies are likely to be sold into. The short-term structure suggests the next support is placed at 24,460, a level that may offer temporary stability. However, if this breaks, further weakness toward 24,200–24,000 cannot be ruled out.
In summary, the Nifty has transitioned from a neutral-to-bullish setup to a clear bearish structure with momentum and price action both favoring the downside. Unless the index quickly reclaims levels above 24,800–25,000, the bias remains weak. Traders are advised to maintain a bearish stance and consider selling on intraday rallies, with immediate resistance at 24,800 and support now placed at 24,460. A decisive break below 24,460 could trigger fresh downside, while only a close above 25,000 would hint at a potential trend reversal.
Ankush Bajaj is a Sebi-registered research analyst. His registration number is INH000010441.
Investments in securities are subject to market risks. Read all the related documents carefully before investing.
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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.
