The initial gap-down was triggered by renewed the US-China trade tensions following President Trump’s threat of 100% tariffs on Chinese imports, which spurred global risk aversion. However, sentiment improved significantly as the day progressed, aided by Trump’s subsequent, more conciliatory remarks and positive commentary on the advancing India-U.S. trade pact.
Two stock recommendations by MarketSmith India:
Buy: Lloyds Metals and Energy Ltd. (current price: ₹ 1,344.20)
- Why it’s recommended: Strong brand presence and trusted diagnostic network, consistent revenue and profit growth over the years, expanding presence in Tier-II & Tier-III cities, and technological integration in testing and digital platforms
- Key metrics: P/E: 50.05, 52-week high: ₹ 3,650.95, volume: ₹ 52.85 crore
- Technical analysis: Reclaimed its 100-DMA
- Risk factors: Rising competition from new-age diagnostic chains and online aggregators, pricing pressure due to competition and regulatory scrutiny, dependence on B2C urban markets for major revenue share, and margin compression from expansion into smaller towns
- Buy: ₹ 3,190–3,230
- Target price: ₹3,650 in two to three months
- Stop loss: ₹2,990
Buy: Bank Of Maharashtra (current price: ₹1,408)
- Why it’s recommended: Strong presence in rural microfinance + last-mile reach, diversified lending portfolio & product innovation
- Key metrics: P/E: 113.77; 52-week high: ₹1,796; volume: ₹102.85 crore
- Technical analysis: Possible trendline breakout
- Risk factors: Credit risk & vulnerability to rural stress, competition & margin pressure
- Buy at: ₹1,390–1,410
- Target price: ₹1,520 in two to three months
- Stop loss: ₹ 1,350
Nifty 50 recap
Indian equities ended lower on Monday, extending their range-bound trend as investors remained cautious ahead of key global data releases and corporate earnings. Nifty 50 slipped 58 points, or 0.23%, to close at 25,227.35, while Sensex lost around 200 points to settle near 82,900. Market breadth was negative, with 1,118 stocks advancing and 1,975 declining, indicating broad-based weakness across sectors. Sectorally, losses were led by FMCG (-0.9%), Consumer Durables (-0.8%), and IT (-0.8%). Meanwhile, Financial Services (+0.35%), PSU Banks (+0.24%), and Private Banks (+0.10%) managed modest gains. Mid- and small-cap healthcare stocks outperformed slightly. Sentiment remained subdued amid mixed global cues, higher U.S. yields, and continued foreign investor selling, with traders likely awaiting inflation data and Q2 earnings announcements for fresh direction.
The index remains within an upward-sloping trend channel, supported by strength across key moving averages, (the 21-, 50-, and 100-DMA) all trending below the current price, reinforcing a bullish undertone. The RSI is at 58.5 reflecting improving momentum without entering overbought territory, while the MACD maintains a positive crossover, though the histogram’s flattening suggests moderating upside momentum. Overall, the setup indicates short-term consolidation within a structurally positive trend.
According to O’Neil’s methodology of market direction, the market status has been downgraded to an “Uptrend Under Pressure” as Nifty breached its “50-DMA” and the “distribution day count” is at one.
The index ended lower, tracking weak global cues, and is likely to enter a consolidation phase within 25,050–25,350. A breakout on either side of this band will determine the next directional move. On the upside, a sustained trade above 25,350 could open the door for a move toward 25,500 in the near term. Conversely, a close below 25,050 may trigger renewed selling pressure, dragging the index lower toward 24,900–24,800. Until a clear breakout emerges, price action is expected to remain range-bound with a cautious bias.
How did Nifty Bank Perform
Yesterday, Bank Nifty opened with a gap down and remained in negative territory for most of the session. However, strong buying interest in the final hour of trade helped the index recover sharply and close in positive territory despite intraday volatility. This marks the formation of a third consecutive bullish candle on the daily chart, signaling continued strength in the banking sector. The index opened at 56,337.05, touched an intraday high of 56,770.90, and a low of 56,327.40, before finally closing at 56,625, reflecting a resilient comeback from early-session weakness.
The index’s technical outlook suggests improving momentum, as the RSI continues to rise and stays comfortably within the bullish zone around 67. The MACD also trades above its signal line, maintaining a positive crossover that supports the ongoing upward bias. Despite this constructive setup, the index still awaits a convincing breakout to validate a stronger directional move. In the meantime, traders are advised to adopt a cautious stance, prioritizing high-quality opportunities and avoiding over-leveraged positions, until clearer trend confirmation emerges, thereby preserving discipline and adaptability in a dynamic market environment.
The index closed the day on a flat note, yet its firm stance above all its key moving averages underscores the ongoing strength within the banking space. The index’s resilience suggests that sustained momentum could push it toward the previous high of 57,628, implying an upside of nearly 2% from the current levels. That said, given the recent uptrend, a phase of mild profit-booking at higher levels appears likely. On the downside, crucial support levels are placed at 55,300 and 55,000, which may act as a strong base for short-term stability and potential buying opportunities during any corrective pullbacks.
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, 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.
