As we enter a new week, markets are walking on eggshells owing to overall global uncertainties and the commencement of the Q1 earnings season. The benchmark Nifty 50 closed last week lower by 1.3% at 25,149.85, with Bank Nifty declining 0.5% to close at 56,754.70. Broader markets were not far behind and fell more than 1%.
Nifty 50 Technical Setup: Key Levels to Watch
As per technical experts, the Nifty is now approaching a critical support area between 24,900 and 24,850. That level coincides with the 50-day Exponential Moving Average (EMA), a widely used tool in trend analysis. If the index slips below 24,850, another decline towards 24,550 can't be excluded. But to spark bullish sentiments again in the near future, Nifty would have to cross over the 25,300–25,350 resistance zone.
For Bank Nifty, support is anticipated at 56,200–56,300. Holding this region will be crucial for preventing further downside pressure.
Global Market Trends and Domestic Events
The major Q1 corporate earnings will be in focus this week. Key companies such as HCL Tech, Tech Mahindra, ICICI Bank, Axis Bank, Wipro, JSW Steel, HDFC Bank, and L&T Finance are likely to report their quarterly numbers.
From a macroeconomic perspective, investors will take close note of India's CPI and WPI inflation data released on July 14. Surprise readings may decide market direction. Moreover, trends in international crude oil prices and foreign institutional investor (FII) flows will be watched closely.
Globally, trade tariff developments, the U.S. inflation report, and China's GDP figures may contribute to market volatility.
Top Stock Picks for Monday: Analyst Recommendations
Top technical analysts of well-known brokerage houses have shortlisted eight stocks with intraday potential. A glance at the recommendations below:
Sumeet Bagadia (Choice Broking)
1. CarTrade Tech Ltd
- Buy Price: ₹1,899.70
- Target: ₹2,020
- Stop Loss: ₹1,830
CarTrade recently broke out of its consolidation phase, hitting its new highs this calendar year. The breakout above ₹1,850 has converted this erstwhile resistance point into a robust support area, cementing bullishness.
2. Tarc Ltd
- Buy Price: ₹201.92
- Target: ₹215
- Stop Loss: ₹195
TARC is displaying healthy price action with continuous higher highs and higher lows. The bearish EMA crossover supports the current up trend.
Ganesh Dongre (Anand Rathi)
3. Larsen & Toubro (LT)
- Buy Price: ₹3,537
- Target: ₹3,700
- Stop Loss: ₹3,470
L&T is holding above a vital support point and has reflected renewed strength, making it an apt choice for short-term profits.
4. Rashtriya Chemicals & Fertilizers (RCF)
- Buy Price: ₹151
- Target: ₹161
- Stop Loss: ₹145
RCF displays a strong bullish continuation pattern and has rebounded from its latest support price, leaving room for further gains.
5. Jindal Steel & Power Ltd
- Buy Price: ₹937
- Target: ₹970
- Stop Loss: ₹920
The stock is on the crest of a strong bullish wave and continues to enjoy good support around ₹920. Momentum indicators indicate a potential short-term break.
Shiju Koothupalakkal (Prabhudas Lilladher)
6. Paradeep Phosphates Ltd
- Buy Price: ₹164.70
- Target: ₹1 75
- Stop Loss: ₹161
The stock has rebounded from 50EMA and is taking a bullish shape within a rising channel. RSI is also indicating early signs of a reversal.
7. NRB Bearings Ltd
- Buy Price: ₹289.50
- Target: ₹306
- Stop Loss: ₹283
With consecutive higher bottoms and rising volume, NRB Bearings is set to go up. RSI shows the start of a new bullish phase.
8. Gujarat Pipavav Port Ltd
- Buy Price: ₹158.25
- Target: ₹168
- Stop Loss: ₹154
The stock has been able to stay above the 50EMA and is now displaying renewed strength. Technical framework and RSI indicate more upside potential.
Conclusion
As the markets start a new week amidst international uncertainty and essential domestic data releases, everyone will be focused on corporate earnings and inflation readings. From a technical perspective, Nifty 50 and Bank Nifty are make-or-break levels. Traders are recommended to be careful, control the risk tightly, and seek opportunities in fundamentally and technically sound stocks.
Disclaimer: These stock tips are the result of technical analysis done by market professionals and are intended for information only. Investors should consult their financial advisors prior to making any investments.
