Stock recommendations for 21 July from MarketSmith India

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Stock market recap: Stock market benchmarks, the Sensex and the Nifty 50, ended lower on Monday, 20 July, tracking weak global cues amid escalating US-Iran tensions.

The Sensex declined 443 points, or 0.57%, to close at 77,708.52, while the Nifty 50 shed 96 points, or 0.39%, to settle at 24,238.50.

However, the mid and small-cap segments remained resilient. The Nifty Midcap 100 index climbed 0.60%, while the Smallcap 100 index rose by 0.16%.

While the Nifty 50 ended lower, as many as 36 stocks ended higher in the index. Trent, Power Grid, and Nestle were the top gainers, while Axis Bank, HDFC Bank, and Maruti were the top laggards in the index.

Two stock recommendations by MarketSmith India:

Buy: KPI Green Energy Ltd (current price: ₹412)

Buy: Shyam Metalics and Energy Ltd (current price: ₹1,055)

Nifty 50 opened on a negative note at 24,190.05 and initially witnessed selling pressure. After touching an intraday high of 24,266.10, the index failed to sustain gains as profit-booking emerged during the session. It subsequently slipped to an intraday low of 24,135.85 before settling at 24,238.50, down 95.80 points (-0.39%).

Despite the weak close, the index managed to hold above its 10-, 21-, 50-, and 100-DMA, indicating that the broader intermediate-term trend remains constructive. The formation of a relatively small bearish candlestick near recent highs reflects consolidation rather than aggressive distribution. Market participants continue to monitor earnings announcements and global cues, while sustained buying in heavyweight sectors is likely to determine the index's next directional move.

From a technical perspective, the RSI (14) is placed at 55.58, comfortably above the neutral 50 mark, suggesting that bullish momentum remains intact despite the day's decline. However, the RSI has flattened slightly, indicating a temporary pause in upward momentum rather than a reversal. The MACD remains above the zero line, reflecting a positive broader trend. Although the histogram has turned marginally negative and the MACD line is hovering near a bearish crossover, signalling weakening short-term momentum. If the RSI sustains above 50 and the MACD stays above the zero axis, the ongoing consolidation is likely to remain within a constructive medium-term uptrend rather than evolve into a meaningful corrective phase.

Technically, 24,100–24,140 represents the immediate support zone, coinciding with the 10- and 21-DMA, followed by stronger support near 23,925 (100-DMA) and 23,830 (50-DMA). On the upside, immediate resistance is placed around 24,300–24,350, while a decisive breakout above 24,500 could pave the way for a move toward 24,700–24,800 in the near term.

From a macro perspective, investors are closely tracking the ongoing Q1FY27 earnings season, foreign institutional investor activity, crude oil prices and global central bank commentary. A positive earnings surprise from index heavyweights could provide the catalyst for an upside breakout. In contrast, sustained global risk aversion or weaker-than-expected corporate results may keep Nifty confined to a consolidation phase before its next meaningful directional move.

Nifty Bank opened on a negative note at 57,738.25 and witnessed selling pressure right from the opening bell. After touching an intraday high of 58,111.00, the index failed to sustain gains as profit-booking intensified, dragging it to an intraday low of 57,533.10. Eventually, it eventually at 57,945.00, down 576.40 points (-0.98%) for the day.

Technically, the index is trending above all its key moving averages, indicating that the broader trend remains positive despite the short-term weakness. The formation of a bearish candle after a recent pullback reflects consolidation near the resistance zone rather than a decisive trend reversal. Banking stocks may continue to witness stock-specific action as investors closely moni...