Raja Venkatraman recommends three stocks for 14 July

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Stock market recap: Equity benchmarks staged a smart recovery on Monday, 13 July, with the Sensex closing 47 points higher at 77,616 and the Nifty adding 4 points to settle at 24,211, holding above the crucial 24,200 mark.

Equity benchmarks staged a smart recovery on Monday, July 13, with the Sensex closing 47 points higher at 77,616 and the Nifty adding 4 points to settle at 24,211, holding above the crucial 24,200 mark. The rebound was led by IT stocks, with TCS, Infosys, HCLTech, Tech Mahindra and Wipro among the top gainers. Private banks also lent support, as Kotak Mahindra Bank and ICICI Bank advanced, pushing the Nifty Bank index up 86 points. Select sectors saw strong buying—Voltas and Blue Star extended gains, LTIMindtree rose on upbeat commentary, and life insurers continued their rally.

Stock-specific moves kept traders engaged: Kalyan Jewellers surged nearly 50% in four sessions, while Happiest Minds jumped 6%. Market breadth remained balanced, though Avenue Supermarts, Indian Bank, Bharat Dynamics, and gold financiers slipped. Midcaps ended flat, autos were mixed, and Sensex gainers included TCS, Infosys, Bajaj Auto and Wipro, while Grasim, Tata Steel and Nestle dragged.

The situation for the market was just getting better when the geopolitical conflict between Israel and Iran got worse. With no clarity emerging from the US, the equation is sending ripples across global markets, pushing crude oil prices higher due to concerns over supply disruptions, particularly in the Strait of Hormuz. Rising oil prices are affecting transportation, energy, and food costs, raising inflation risks just as central banks are beginning to ease policy.

The intraday charts shown below also indicate that the recent reaction on Monday did not dent the immediate support at 24000. Going ahead we can note that the resistance zone around 24500 mark would play a part in the market recovery. For the upside to sustain 24300 is crucial. The trendline support from the lower levels around 23800 may come into play.

A look at Bank Nifty indicates that room till 54500 has now opened up as the setup is getting ready to support the bulls attempt to rebound. Bank Nifty is a sector that should be tracked. Once 59000 is breached, there could be more upward momentum extended with some stock-specific action. At the moment, there are divergent views being displayed across all the component stocks. PSU Banks or Private Banks are exhibiting bullishness now thus drawing attention helping the Bank Nifty to recover.

This, in turn, will spill over to the other sectors like Auto, Realty and Finance. Despite markets on Monday showing some prowess of a recovery the inability of Bank Nifty to clear the 55100 mark seems limited in this curtailed week. Till then this index holds the key for some trends to recover.

We are now observing that the Max Pain Point has shifted to 24200 while the PCR has remained below 1 indicating that the lower levels are being threatened once again. However, as one must accept the selling pressure shows up periodically to create some tension. As trends are unable to hold on to the bullish bias seen on Thursday, we continue to witness deterioration in prices thus leading the trends through some challenging times. Time for being alert as trends are firmly etched lower with no signs of recovery.

Raja Venkatraman is co-founder, 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.

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