Top three stocks recommended by Ankush Bajaj for 8 July
- Why it’s recommended: Motilal Oswal Financial Services has recently broken out of a multi-month consolidation zone near ₹845, supported by strong volume and a consistent upward price trajectory. The stock is forming a bullish structure with higher highs and higher lows, signaling trend strength. It is comfortably trading above its 50-day and 200-day moving averages, further validating the ongoing momentum. The breakout structure appears reliable, and the technical setup points toward continued upside over the short term.
- Key metrics: Breakout zone: ₹845, Support (stop loss): ₹904
- Pattern: Multi-month resistance breakout with moving average alignment
- RSI: 68; showing solid momentum while remaining below overbought territory
- Technical analysis: The stock has confirmed a breakout from its previous resistance zone near ₹845, followed by a successful retest of the breakout level. The price action is supported by rising volume and a firm bullish structure. With the stock holding above key moving averages and showing strong follow-through, the current trend suggests the potential for a move toward ₹988– ₹995. Price action remains directional, with recent dips being bought into, indicating strong demand. The upward momentum remains intact unless the stock fails to hold above ₹904.
- Risk factors: A close below ₹904 would invalidate the current bullish setup and signal weakness. Failure to maintain momentum above ₹920– ₹925 or signs of exhaustion near resistance could trigger short-term profit booking. Traders should monitor volume activity to ensure continued strength behind the breakout.
- Buy at: ₹930.10
- Target price: ₹988– ₹995
- Stop loss: ₹904
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- Why it’s recommended: JK Lakshmi Cement is approaching a major breakout from a long-term ascending triangle pattern, with strong resistance placed at ₹1000. The stock recently hit a fresh 52-week high of ₹1006 before pulling back slightly, indicating that overhead supply is gradually getting absorbed. It remains in a strong uptrend and is showing signs of accumulation. The bullish structure and positive momentum suggest a potential breakout continuation in the near term.
- Key metrics: Breakout zone: ₹1000, Support (stop loss): ₹960
- Pattern: Ascending triangle formation with bullish follow-through and 52-week high breakout attempt
- RSI: 79; momentum is very strong but entering overbought territory, which is common in strong trending phases
- Technical analysis: The stock is trading well above its 50-day and 200-day moving averages, confirming trend strength. The ascending triangle pattern reflects sustained accumulation, and a decisive move above ₹1000 with volume would confirm the breakout. With the RSI showing strong momentum and recent price action challenging previous highs, the stock appears poised for a short-term rally. If the breakout above ₹1000 holds, the next upside target zone is seen around ₹1020– ₹1050.
- Risk factors: A close below ₹960 would weaken the setup and suggest a return to the prior consolidation range. Overbought RSI could lead to a temporary pullback if the breakout fails to sustain. Traders should look for strong volume as confirmation of breakout validity.
- Buy at: ₹978.30
- Target price: ₹1020-1050
- Stop loss: ₹960
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Buy: 360 One WAM Ltd — Current Price: ₹1253
- Why it’s recommended: 360 One WAM is displaying a strong bullish continuation pattern, having recently broken out of a rounding bottom formation near ₹1150. The stock has been making higher highs and recently reached ₹1273 before a modest pullback, indicating controlled profit-taking. It continues to trade close to its 52-week highs and remains firmly above all key moving averages, which reinforces the strength of the trend. The setup points to further upside potential, backed by momentum and institutional interest.
- Key metrics: Breakout zone: ₹1150– ₹1170 (rounding bottom breakout zone), Support (stop loss): ₹1225
- Pattern: Rounding bottom breakout with strong trend continuation
- RSI: ~70; confirms sustained bullish momentum without divergence
- Technical analysis: The stock is trending above its short-, medium-, and long-term moving averages, indicating broad-based strength. Volume trends have been positive, with noticeable spikes on up days — a sign of institutional participation. The price structure is constructive, and the recent consolidation below ₹1270 appears healthy. A breakout above ₹1270 could accelerate the rally toward ₹1305– ₹1320. With the current positioning and momentum, the stock remains a buy on dips or on breakout confirmation above recent highs.
- Risk factors: A close below ₹1225 would weaken the bullish setup and suggest short-term fatigue. Lack of volume on further rallies or rejection from ₹1270– ₹1280 zone could result in a brief pullback. Traders should watch price behavior closely near the previous high.
- Buy at: ₹1253
- Target price: ₹1302– ₹1315
- Stop loss: ₹1225
Market Wrap
On Monday, the Nifty 50 closed flat, gaining just 0.30 points or 0.00% to settle at 25,461.30. Similarly, the BSE Sensex added just 9.61 points or 0.01% to end at 83,442.50. Bank Nifty staged a modest rebound from intraday weakness, gaining 82.70 points or 0.15% to close at 56,949.20, driven by selective strength in financial counters.
While some pressure was visible in high-beta and interest-sensitive sectors — with the Metal index down 0.61%, PSE falling 0.28%, and PSU Bank slipping 0.16% — defensives firmly held ground. The FMCG sector led the charge with a robust gain of 1.68%, followed by the Consumption index up 0.43%, and Oil & Gas rising 0.41%, signaling a clear preference for stability in uncertain terrain.
Among individual performers, Hindustan Unilever shone brightly, rallying 3.04% on strong institutional interest. Nestle India gained 1.22%, and Tata Consumer advanced 1.12%, reflecting sustained demand in quality consumption names. On the flip side, recent outperformers faced some pullback — Bharat Electronics Limited declined 2.44%, Tech Mahindra dropped 1.89%, and ONGC fell by 1.52%.
Nifty Technical Analysis Daily & Hourly
The Nifty ended Monday’s session largely flat, forming a Doji candlestick on the daily chart, which reflects indecision among traders following the recent upward move. The index closed just above the 25,460 mark, maintaining its broader bullish structure but showing signs of short-term fatigue.
On the technical front, Nifty continues to trade well above its key moving averages, with the 20-day simple moving average positioned at 25,182 and the 40-day exponential moving average at 24,940. This alignment confirms the medium-term uptrend remains intact. Momentum on the daily chart also supports this view, with the Relative Strength Index (RSI) holding firm at 61 and the MACD continuing to trend higher with a reading of 210 versus a signal line of 202. These indicators suggest that while the underlying strength persists, the pace of the rally is slowing.
The intraday picture, however, reveals some caution. On the hourly chart, Nifty is hovering just above the 20-hour moving average at 25,443 and the 40-hour EMA at 25,440. Momentum indicators have turned soft at this timeframe, with the hourly MACD slipping into negative territory at –4 against a signal line of –8, while the RSI hovers near the neutral zone. These signals point toward weakening intraday strength and the potential for range-bound action or minor pullbacks in the near term.
In the derivatives space, the overall option data suggests a mixed tone with a slight bullish bias in the short term. The total Call open interest stands at 13.86 crore, compared to 11.08 crore in Puts, resulting in a net difference of –2.79 crore, which indicates a bearish positioning trend. However, the intraday changes paint a different picture, with Put open interest rising by 1.73 crore and Calls by 1.52 crore. The net addition of 20.88 lakh contracts in favor of Puts reflects fresh Put writing and suggests support is building at lower levels. The Put/Call Ratio stands at 0.80, leaning toward a bearish tilt but still within a manageable range.
From a strike-wise perspective, the highest Call OI remains at 26,000, reinforcing it as a key resistance zone, while the most active addition on the Call side was seen at 25,600. On the Put side, the strongest base continues at the 25,000 strike, followed by notable additions at 25,300, indicating a support band just below current levels.
Volatility edged slightly higher, with India VIX rising by 2% to 12.56. Despite this uptick, the overall volatility environment remains subdued, suggesting traders are still comfortable and not aggressively seeking protection against downside risks. Market breadth was neutral to mildly positive, mirroring the consolidation seen in price action.
In summary, the Nifty’s medium-term trend remains upward, backed by strong moving average support and a constructive daily momentum setup. However, the formation of a Doji and softening intraday indicators highlight growing caution and the potential for consolidation between 25,200 and 26,000. Unless the index breaks above the 26,000 mark decisively, the market may continue to trade in a sideways range. Traders are advised to adopt a tactically cautious approach—considering long positions on dips toward 25,200–25,300 with stops below 25,150, while watching for a breakout above 26,000 to re-enter directional trades.
Ankush Bajaj is a Sebi-registered research analyst. His registration number is INH000010441.
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