Broader gains, however, were capped by mixed global cues, investor caution ahead of the US Federal Reserve’s policy decision due later in the day, and continued uncertainty over potential US tariffs as the 1 August deadline approaches.
The Sensex closed 144 points, or 0.18%, higher at 81,481.86, while the Nifty 50 rose 34 points, or 0.14%, to 24,855.05. The BSE Midcap and Smallcap indices both added 0.17%.
Two stock recommendations by MarketSmith India for 31 July:
Buy: Larsen and Toubro Ltd (current price: ₹3665.10)
- Why it’s recommended: Record order inflows and strong execution, diversified business mix, strategic expansion in defense, green energy, and aerospace.
- Key metrics: P/E: 33.49, 52-week high: ₹ 3,963, volume: ₹ 3,193 crore
- Technical analysis: Strong trend reversal after Q1 numbers, trending above all its key moving averages.
- Risk factors: Project execution delay and margin volatility, soft domestic order pipeline, commodity driven cost pressure, and interest rate risk.
- Buy at: ₹ 3,570–3,650
- Target price: ₹ 4,300 in two to three months
- Stop loss: ₹ 3,390
Buy: India Pesticides Ltd (current price: ₹228.70)
- Why it’s recommended: Strong volume-led revenue growth, capacity expansion and backward integration, China‑plus‑one trend, and export demand
- Key metrics: P/E: 30.61; 52-week high: ₹431; volume: ₹ 49.31 crore
- Technical analysis: Tight range breakout
- Risk factors: Product and customer concentration, price competition, and market fragmentation
- Buy at: ₹223–228
- Target price: ₹265 in two to three months
- Stop loss: ₹208
Nifty 50 Performance | 30 July
The Nifty 50 opened slightly higher on Wednesday and remained rangebound through the session, swinging within a narrow 130-point band between 24,900 and 24,770. The price action formed a narrow-range candle on the daily chart, signaling indecision among market participants. Barring Infrastructure and IT, most sectoral and broader market indices closed in the red. Market breadth was neutral, with an advance-decline ratio of 1:1.
From a technical standpoint, the index found support near 24,600 and posted a second straight session of gains, indicating short-term buying interest. However, it remains about 0.83% below its 50-day moving average (DMA), underscoring a still-negative undertone.
The Relative Strength Index (RSI) has turned marginally higher, suggesting early signs of momentum recovery, though it remains in bearish territory. Meanwhile, the Moving Average Convergence Divergence (MACD) remains below the zero line with a negative crossover, reinforcing a cautious near-term outlook.
Under O’Neil’s methodology of market direction, the broader market trend has been downgraded to “Uptrend Under Pressure,” as the Nifty breached its 50-DMA and the distribution day count rose to five.
Looking ahead, the 24,600–24,480 zone will be key support in the event of a pullback. On the upside, immediate resistance lies at 25,000, followed by 25,300. A sustained move above these levels will be essential to reassert bullish momentum in the near term.
Bank Nifty Recap | 30 July
The Bank Nifty opened with a mild positive bias on Wednesday but remained volatile through the session, ultimately closing with a marginal loss of 0.13%. The price action resulted in a bearish candlestick on the daily chart, pointing to short-term weakness. Both private and PSU banking indices saw profit booking, weighed down primarily by declines in ICICI Bank and Kotak Bank. The FINNIFTY index also ended flat, reflecting a lack of clear direction across the broader financial space.
Technically, Bank Nifty continues to trade below its 50-day moving average, underscoring a weak short-term trend. The Relative Strength Index (RSI) has flattened around 44, indicating subdued momentum. The MACD remains in a negative crossover and below the signal line, suggesting that upside potential remains capped. This technical setup reinforces a cautious near-term outlook, with the index lacking strong directional cues.
Despite the lack of momentum, Bank Nifty remains in a Confirmed Uptrend under O’Neil’s market direction methodology—a status it has held consistently in recent weeks.
The index continues to consolidate within a sideways range of 55,800–57,500. Wednesday’s price action further reaffirmed this consolidation. Key support is seen at 55,800; a breakdown below this level could trigger further downside toward 55,200–55,000. On the upside, resistance is placed at 56,400, with a breakout above potentially opening the path to 57,000–57,500. Absent a decisive move in either direction, the index is expected to remain range-bound and choppy in the near term.
MarketSmith India 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, developed 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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