Stock recommendations for 16 July from MarketSmith India

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Stock market recap: Indian equities ended marginally higher on Wednesday, 15 July, with benchmark indices Sensex and Nifty 50 posting modest gains, while the mid- and small-cap indices gaining up to half a per cent amid escalating US-Iran tensions and rising crude oil prices.

The 30-share pack rose 130 points, or 0.17%, to close at 77,185.43, while the Nifty 50 ended at 24,078.50, rising 26 points, or 0.11%.

The Nifty Midcap 100 index ended 0.28% higher, while the Nifty Smallcap 100 index rose by 0.67%.

Two stock recommendations by MarketSmith India:

Buy: Bandhan Bank Ltd (current price: ₹216)

Buy: EPACK Durable Ltd (current price: ₹247)

Indian equity markets ended marginally higher after a volatile trading session, with Nifty 50 closing at 24,078.50, up 26.45 points (+0.11%). Meanwhile, Sensex also finished in positive territory after giving up a large part of its early gains. Nifty traded in a wide intraday range of 24,010.55–24,220.35, reflecting profit booking in the second half after a strong opening.

Early optimism was driven by easing global concerns, a firmer rupee and buying in financial stocks, though gains moderated later amid caution over geopolitical developments and ongoing Q1 earnings. Market breadth remained constructive, with 1,847 stocks advancing, 1,445 declining, and 111 remaining unchanged, indicating broader participation despite the benchmark's modest move. On the sectoral front, PSU Banks (+0.95%), Consumer Durables (+0.73%), Oil & Gas (+0.69%), Financial Services (+0.63%), and Healthcare (+0.40%) outperformed, while Metal (-1.11%), IT (-0.67%), FMCG (-0.49%), Media (-0.46%), and Realty (-0.38%) ended lower.

Nifty 50 ended largely flat and formed a Doji candlestick on the daily chart, reflecting indecision between buyers and sellers after a volatile session. The Relative Strength Index (RSI) is positioned at 52.3, remaining above the neutral 50 mark but easing from recent highs, indicating that bullish momentum has moderated while still favoring the positive side. Meanwhile, the MACD remains in positive territory with the MACD line above the signal line, although the narrowing histogram suggests that upside momentum is gradually weakening.

The index is currently trading near a crucial support zone of 23,800, which will be closely monitored in the coming sessions. A decisive break down 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 positive note at 57,643.75 and witnessed steady buying interest during the session. After slipping to an intraday low of 57,545.20, the index attracted fresh demand from lower levels and gradually recovered, eventually closing near the day's high at 57,757.85, up 295.55 points (+0.51%). During the session, it touched an intraday high of 58,148.80, indicating that buyers remained active despite intermittent volatility.

The index managed to reclaim the 21 DMA while trading above the 50-, 100-DMA, and the 200-DMA, reflecting a constructive intermediate-term trend. Technically, the recent price action resembles a consolidation above key moving averages, suggesting that market participants continue to accumulate at lower levels while awaiting a decisive breakout above the recent trading range.

The RSI is placed at 55.05, comfortably above the neutral 50 mark, indicating that positive momentum remains intact despite some moderation from recent highs. The MACD continues to remain above the zero line. Although it has generated a nega...