Top 3 stocks recommended by Ankush Bajaj for 31 July:
Tata Chemicals Ltd — current price: ₹1,001.35
Why IT’s recommended: The stock is showing strong bullish momentum, with a daily RSI of 67 and MACD at 14.69 indicating positive strength. On the daily time frame the stock has formed a bullish pennant pattern, a classic continuation setup. This combination of technical indicators and chart pattern signals potential for further upside. A sustained move above the consolidation zone could push the stock towards ₹1,072 in the near term.
Breakout zone: Bullish pennant pattern on daily chart
Pattern: Continuation pattern with momentum confirmation
MACD: Positive at 14.69, signalling strong trend strength
RSI: Daily RSI at 67, reflecting bullish momentum
Technical analysis: Strong continuation pattern along with momentum indicators support a bullish outlook toward the ₹1,072 target zone.
Risk factors: A close below ₹964 will invalidate the bullish setup and could result in a short-term correction. A disciplined stop-loss at ₹964 is advised.
Buy at: ₹1,001.35
Target price: ₹1,072
Stop loss: ₹964
Amber Enterprises (I) Ltd — current price: ₹8,040.50
Why it’s recommended: Amber Enterprises stock is showing sustained strength and trading near its lifetime high. The daily RSI is at 68 and the MACD stands at 196, both suggesting strong bullish momentum. On the lower time frame the stock has closed convincingly above the key ₹7,950 level, reinforcing the bullish continuation setup. These technical confirmations support a potential move toward higher levels in the coming sessions.
Breakout zone: Closing above ₹7,950 on lower time frame
Pattern: Price strength near lifetime highs with momentum confirmation
MACD: Strong positive at 196, indicating trend continuation
RSI: Daily RSI at 68, showing bullish momentum
Technical analysis: Bullish structure and momentum near highs support upward continuation toward ₹8,368 in the near term.
Risk factors: A close below ₹7,910 will negate the current setup and may trigger a short-term pullback. A stop-loss at ₹7,910 is advised.
Buy at: ₹8,040.50
Target price: ₹8,368
Stop loss: ₹7,910
IPCA Laboratories Ltd — current price: ₹1,529.50
Why it’s recommended: The stock is poised for a bullish breakout with a daily RSI of 65 and MACD at 28 confirming strength. On the daily chart the stock has formed a reverse head and shoulder pattern near ₹1,521, a classic reversal formation. This setup signals a potential upside from current levels, backed by both price structure and momentum indicators.
Breakout zone: Reverse head and shoulder pattern near ₹1,521
Pattern: Reversal pattern indicating potential trend change
MACD: Positive at 28, reflecting strengthening trend
RSI: Daily RSI at 65, suggesting bullish sentiment
Technical analysis: Bullish reversal setup supports upside potential toward ₹1,590 in the short term.
Risk factors: A close below ₹1,496 would invalidate the bullish view and could result in a correction. A stop-loss at ₹1,496 is recommended.
Buy at: ₹1,529.50
Target price: ₹1,590
Stop loss: ₹1,496
How the market performed on Wednesday
The Nifty 50 rose by 33.95 points or 0.14% to close at 24,855.05, while the BSE Sensex gained 143.91 points or 0.18%, ending the session at 81,481.86. In contrast, the Bank Nifty continued its subdued performance, slipping by 71.30 points or 0.13% to settle around 56,150.70 after breaching intraday support levels earlier in the day.
Sector-wise, the market exhibited a mixed tone. Gains were seen in infrastructure, FMCG, IT, and capital goods, while realty, media, auto, and PSU banks ended lower, each shedding around half a percent. Unlike the previous session where defensives like pharma and healthcare led the gains, Wednesday’s session saw rotational interest shift toward consumption, engineering, and quality midcaps.
One of the major drivers of the day’s gains was Larsen & Toubro (L&T), which jumped around 4.7% following strong quarterly results that showed a 30% year-on-year rise in profit. This single stock significantly boosted sentiment in the capital goods and infrastructure space. Other gainers included Sun Pharma, which advanced by 1.5%, Tata Consumer Products up 1.36%, NTPC adding around 1.1%, and Maruti Suzuki closing with a near 1% gain. Bharti Airtel and HDFC Bank also attracted steady institutional buying.
However, the upside was capped by weakness in certain large-cap names. Tata Motors fell sharply by approximately 3.5% after news of a potential $4.5 billion acquisition raised concerns among investors about strategic fit and financial strain. Among banks, IndusInd Bank dropped around 0.78%, Kotak Mahindra Bank declined 0.67%, and ICICI Bank shed nearly 0.31%. On the other hand, SBI bucked the trend with a modest gain of 0.31%.
Nifty Technical Analysis Daily & Hourly
The Nifty ended marginally higher on July 31, 2025, closing the session at 24,855.05, up 33.95 points or 0.14%. After forming a strong bullish engulfing pattern in the previous session, the index opened on a positive note and largely remained range-bound throughout the day. Despite closing in the green, the price action lacked strong follow-through, indicating that the market is in a consolidation phase. Until Nifty decisively moves above the psychological 25,000 mark, fresh buying opportunities are expected to remain limited.
From a technical standpoint, the index continues to trade below its short-term moving averages, with the 20-day SMA placed at 25,151 and the 40-day EMA at 25,005. On the intraday chart, Nifty is hovering near key hourly averages, with the 20-hour SMA at 24,773 and the 40-hour EMA at 24,877, indicating a neutral to mildly positive short-term structure. The index is holding above the recent support of 24,800, but resistance near 25,000 continues to cap the upside.
Momentum indicators are showing slow but steady improvement. The daily RSI has inched up to 43, while the hourly RSI has reached the neutral level of 50, suggesting that momentum is stabilizing but not yet strong. The MACD remains in negative territory, with the daily MACD at –74 and the hourly MACD at –13, showing that bearish momentum is still present, though it’s gradually weakening.
In the derivatives segment, overall open interest data still reflects a bearish undertone, with total Call OI at 18.92 crore compared to Put OI of 14.76 crore — a negative difference of 4.15 crore. However, the change in OI during the session paints a more optimistic picture, as Call OI declined by 67.98 lakh while Put OI increased by 85.22 lakh, resulting in a net positive change of 1.53 crore. This suggests short-covering on the Call side and fresh Put writing — early signs of a shift in sentiment. The Put-Call Ratio has improved to 0.78, indicating reduced bearishness.
Strike-wise, the highest Call open interest remains at 25,000, reinforcing it as immediate resistance, while fresh Call writing at the 24,900 level further caps the upside. On the Put side, the highest open interest remains at 24,800, which is now emerging as a strong support zone. Additional Put writing at the 24,850 strike reinforces the base and suggests that bulls are trying to defend this level. Meanwhile, India VIX remained subdued, indicating stable volatility and reduced fear in the market.
In summary, while the broader trend remains cautious, the market appears to be stabilizing. The failure to decisively cross 25,000 keeps the short-term outlook neutral, but signs of short-covering and Put writing hint at an underlying shift in sentiment. As long as Nifty sustains above 24,800, buy-on-dips could be considered, but a decisive breakout above 25,000–25,180 is needed for confirmation of a bullish reversal.
Ankush Bajaj is a Sebi-registered research analyst. His registration number is INH000010441.
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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.