Indian stock market benchmarks, Sensex and the Nifty 50, closed with losses on Thursday on profit booking in select heavyweights. The Sensex fell 375 points to end at 82,259.24, while the Nifty 50 settled at 25,111.45, down 0.40%. However, the mid and small-cap segments outperformed. The BSE Midcap index inched up by 0.07 per cent, while the BSE Smallcap index rose 0.30 per cent.
Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman:
CONCORDBIO (Cmp 1920.50)
- Why it’s recommended: Concord Biotech Limited is an India-based research and development-driven biopharma company. The Company is engaged in the research and development, manufacturing, marketing, and selling of pharmaceutical products. After the recent profit booking, we are seeing that the prices have bottomed out forming a rounding pattern to show some strong upmove on Thursday.
- Key metrics: P/E: 53.87, 52-week high: ₹2664, Volume: 624.34K.
- Technical analysis: Support at ₹1722, resistance at ₹2120.
- Risk factors:High volatility, negative investor sentiment, and long-term bearish trends.
- Buy: above 1930 and dips to ₹1860.
- Target price: ₹2105-2155 in 1 month.
- Stop loss: ₹1830.
ECLERX(Cmp 3669.10)
- Why it’s recommended: ECLERX stock price underwent some consolidation and thereafter the strong surge seen can be attributed to a combination of factors, including an increasing demand for digital services ,favourable market conditions and internal strategies. These factors, coupled with mixed market sentiment, have contributed to an improving outlook for this stock in the last few days. With the momentum indicator once again showing some positive vibes, we can look for initiating a long.
- Key metrics: P/E: 48.63, 52-week high: ₹3877; Volume: 173.98K.
- Technical analysis: Support at ₹3320, resistance at ₹3950.
- Risk factors: Market fluctuations, environmental and social impacts.
- Buy: above 3670 and dips to ₹3600.
- Target price: ₹4050-4150 in 1 month.
- Stop loss: ₹3570.
SHYAMMETL (Cmp 919.80)
SHYAMMETL:Buy above 920 and dips to ₹880, stop ₹870 target ₹1000-1020
- Why it’s recommended: Company is diversifying into railways with ₹450 crore wagon plant at Kharagpur (4,800 wagons/year; commercial production by FY27). It plans aggressive capex across ferro alloys, aluminium foils and energy businesses for capacity-led growth. Also, the charts have shown formation of a swing formation of V shaped recovery every time the prices have dipped into the cloud support and a subsequent upward drive is seen on the charts.
- Key metrics: P/E: 52.44, 52-week high: ₹956.90, volume: 1.02M.
- Technical analysis: Support at ₹800, resistance at ₹1100.
- Risk factors: Raw Material volatility and competition that is recently emerging from domestic players could impact profitability.
- Buy at: CMP and dips to ₹880.
- Target price: ₹1000-1020 in 1 month.
- Stop loss: ₹870.
Stock Market Recap
On 17 July, India’s leading benchmarks relinquished their early rally and slipped into negative territory, underscoring a shift toward caution among market participants. The Sensex, which had opened 119 points higher at 82,753, dipped to 82,219, while the Nifty, after climbing to 25,230, retreated to 25,101. The retreat highlights investors’ growing reluctance to commit fresh capital amid a pair of looming uncertainties.
With markets yielding to speculation over US President Trump’s stance on Federal Reserve Chair Jerome Powell causing some cold feet. While the White House dismissed reports of an imminent leadership change, Trump’s persistent public criticism of the Fed’s rate policy has fuelled anxiety about the central bank’s autonomy and the potential for monetary volatility. Also, as the August 1 deadline for an India-US trade pact approaches, traders are bracing for last-minute negotiations. New Delhi is reportedly pushing for tariffs more favorable than those secured by Indonesia, and any delay or dilution of terms could weigh further on market sentiment.
Outlook for Trading
The continued resistance at higher levels shows that the trends are pressured at higher levels as steady supplies are emerging. As we have been mentioning, the trends have been curtailed due to geopolitical trends that have kept the enthusiasm on leash.
From a trading perspective, we can note that the Bank Nifty chart featured yesterday had cautioned that the supports are vital and the hold is critical. However, the lacklustre behaviour seen on the charts demonstrates that the trendline support area around 56800 is crucial. This is an important zone to watch out for, combined with the recent lows that have been formed in that region. Also, the positive DI lines that were giving us some hope seem to be giving way.
With a long body red candles, we may now have witnessed a bearish engulfing clearly hinting at some shorting possibility. Further, the way the trends have progressed its clear that the lack of participation seen now is hinting at a negative day today. With the scenario getting set for some decline, one should look to be careful with their positions. There are still some stock specific action that is keeping the participants active as the result season is underway.
With the inability to move above way above 57500 on an EOD basis we need to revisit the bullish bias. Momentums on hourly charts are indicating that the prices after settling down are now hinting at the onset of some more decline. As eager bullish participants begin to resign, we need to now start adopting some selling candidates into our trading basket.
The readings from the Option Data suggest that PCR has moved to 0.78, highlighting that the trends continue to face some pressure at higher levels, with some steady Call writing at 57000 levels continues to prove to be a hurdle for recovery levels fighting the buying interest at every rise. Trends remain challenged and we are trading in a difficult situation.
Raja Venkatraman is the co-founder of NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.
Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors.
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.