Stock recommendations for 15 July from MarketSmith India

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Stock market recap: The Indian equity benchmarks snapped their three-day winning streak on Tuesday, weighed down by escalating West Asia conflicts and a sharp 4% surge in Brent crude to $87 per barrel.

Reflecting the weak global risk appetite, Nifty 50 shed 0.66% to close at 24,052.05, while BSE Sensex dropped 0.72% to finish at 77,054.94. Compounding the geopolitical strain, domestic macroeconomic concerns intensified as India's June CPI inflation accelerated to 4.38% (surpassing the RBI's 4% midpoint target) alongside a widening trade deficit of $30.43B.

On the sectoral front, broad-based profit booking dragged Nifty PSU Bank, Auto, and Financial Services down by up to 2%, with laggards like HCL Tech and Shriram Finance leading the index decline. Market breadth was decisively bearish, recording 1,022 advances against 2,278 declines across the broader market.

Buy: Orchid Pharma Limited (current price: ₹1,055)

Buy: Multi Commodity Exchange of India Limited (current price: ₹2,891)

Indian equity markets ended lower, with selling pressure persisting through the session amid weak global sentiment and rising geopolitical concerns. Nifty 50 declined 158.95 points (-0.66%) to close at 24,052.05, after trading in a range of 24,023.70–24,157.10, while Sensex lost around 561 points.

Sectoral performance was largely negative. Nifty Realty (-1.97%), PSU Bank (-1.80%), Auto (-1.61%), Financial Services (-1.08%), and IT (-1.00%) lead the declines. On the other hand, Pharma (+1.03%), Healthcare (+0.89%), and Metal (+0.61%) outperformed. Market breadth remained decisively weak, with 1,022 stocks advancing, 2,278 declining, and 110 remaining unchanged, reflecting broad-based selling across the broader market. Bharti Airtel, Sun Pharma, TCS, Tata Steel, and Adani Ports were notable gainers, while HCL Tech, Bajaj Finserv, SBI, IndiGo, and Mahindra & Mahindra were among the key losers.

Nifty 50 ended the session lower, forming a small bearish candle after failing to sustain the recent recovery, indicating profit booking at higher levels. The 14-day RSI has eased to around 52, slipping below its signal line after recently moving into bullish territory. This indicates that positive momentum has moderated, though the oscillator remains above the neutral 50 mark, implying that the broader trend has not turned outright bearish. The MACD remains in positive territory with the MACD line above the signal line, reflecting that the medium-term trend is still constructive. However, the histogram has narrowed considerably, highlighting waning bullish momentum and suggesting that the recent upward impulse is losing strength.

The index is currently trading near a crucial support zone at 23,800, which will be closely monitored in the coming sessions. A decisive breakdown below this level could intensify selling pressure and open the door for a decline toward 23,600–23,500. On the upside, 24,300 remains the immediate and critical resistance level.

A sustained move above this hurdle would be required to improve near-term sentiment and signal a recovery in market momentum. Until either of these levels is decisively breached, the index is likely to remain range-bound with a cautious bias, as investors await fresh triggers for the next directional move.

Nifty Bank opened on a negative note at 57,832.55 and remained under pressure throughout the session as selling emerged from higher levels. The index touched an intraday high of 57,840.05, slipped to a low of 57,286.90, and finally settled at 57,462.30, down 669.15 points (-1.15%). The sharp decline indicates that profit booking intensified after the index failed to sustain near its recent highs. The session also resulted in a bearish candlestick, reflecting weakening short-term sentiment and increasing supply at higher levels.

Despite the weakness, the index managed to hold above its 200-DMA on a closing basis, suggesti...