Indian equity benchmarks closed on a strong note on 23 July, with the Nifty gaining 159 points or 0.63% to settle at 25,219.90. The recovery was largely supported by strength in major banking stocks, while heavyweight stocks across other key sectors showed signs of stabilising. However, the IT sector remained under pressure, continuing its gradual decline.
Two stock recommendations for today by MarketSmith India
Manorama Industries Ltd.(current price: ₹1,585)
- Why it’s recommended: Leadership in a niche market with strong global demand, aggressive capacity expansion and operational scale, strong ESG focus, robust financials, and R&D.
- Key metrics: P/E: 126.20, 52-week high: ₹ 1,012.00, volume: ₹ 75.52 crore
- Technical analysis: Breakout out of a flat base pattern
- Risk factors: Raw material dependency and seasonality risk, regulatory and compliance risk, and execution risk from aggressive expansion
- Buy: ₹1,585
- Target price: ₹1,840 in two to three months
- Stop loss: ₹ 1,490
K.P.R. Mill Limited (current price: ₹1,230)
- Why it’s recommended: Export opportunities and global clientele, integrated business model, garmenting business expansion
- Key metrics: P/E: 50.38, 52-week high: ₹ 3,389, volume: ₹57.06 crore
- Technical analysis: Tight range breakout
- Risk factors: Dependence on export incentives, geopolitical, and global trade risks
- Buy at: ₹ 1,230
- Target price: ₹ 1,380 in two to three months
- Stop loss: ₹ 1,160
How the market performed on 23 July
Nifty traded with a positive bias, gaining over half a percent and providing some respite after recent losses. After a modest start, the index remained range-bound in the first half of the session. However, buying in select heavyweight stocks, particularly in the banking and financial sectors, lifted the index higher. It moved closer to the previous swing high near 25,250 before closing at 25,219.90. The advance-decline ratio was balanced at 1:1, reflecting neutral market breadth.
The index continues to trade between its 50- and 21-DMA, indicating consolidation within a defined range. On the daily chart, the relative strength index (RSI) has turned upward and is nearing 52, suggesting early signs of a potential reversal. However, the daily MACD remains in a downtrend with a negative crossover above the zero line, reflecting that underlying bearish sentiment still lingers.
According to O’Neil’s methodology of market direction, market status has been downgraded to an “Uptrend Under Pressure” as Nifty breached its “50-DMA” and the “distribution day count” rose to five.
The index closed above 25,200 and continued to trade above its 50-DMA, indicating a potential pullback rally. For bullish momentum to resume, a decisive breakout and sustained close above 25,300 will be crucial. On the downside, failure to hold above 24,900 may trigger further weakness, with key support levels seen at 24,750 and 24,500 in the coming sessions.
How did Nifty Bank perform?
Nifty Bank opened on a strong note and traded in positive territory throughout the session, reflecting sustained buying interest. The index successfully reclaimed its 21-DMA, indicating a potential shift in short-term sentiment. On the technical front, a bullish candle was formed on the daily chart, with a higher-high and higher-low price structure. This pattern suggests strengthening momentum and the possibility of further upside. Overall, the day’s price action was technically constructive, reinforcing a positive outlook for the index.
The momentum indicator, RSI, has inched higher and is currently positioned at 57, indicating mild strengthening. Meanwhile, the MACD continues to trade above its central line, despite maintaining a negative crossover. This setup reflects a mixed momentum outlook, with early signs of recovery tempered by caution.
According to O’Neil’s methodology of market direction, Bank Nifty remains in a ‘Confirmed Uptrend’, a status it has maintained over the past few weeks.
Nifty Bank is currently trading well above its 50-DMA and has reclaimed its 21-DMA, reflecting a positive undertone. If the prevailing buying momentum persists, the index may gradually advance toward 57,500–57,600 in the near term. Conversely, a sustained close below 56,200 could trigger an additional downside, with potential support near 55,000.
MarketSmithIndia is a stock research platform and advisory service focused on the Indian stock market. It offers tools and resources to help investors make informed decisions based on the CAN SLIM methodology, founded by legendary investor William J. O’Neil. You can access a 10-day free trial by registering on its website.
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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.
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