The stock market benchmark Nifty 50 dropped more than half a per cent to retreat to levels below 24,050 in intraday deals on Tuesday, 14 July, due to escalating tensions in the Middle East, a jump in crude oil prices, and concerns over rising retail inflation. According to Vishnu Kant Upadhyay, AVP- Research at Master Capital Services, the Nifty 50 is likely to remain range-bound in 23,800 to 24,550 with a sideways to higher tendency. The index has a key support near 24,000, which is the confluence of its 21-day and 55-day EMAs. As reported by experts, if the index manages to hold this crucial support, it may maintain its positive bias.
Vishnu Kant Upadhyay of Master Capital Services and Hitesh Tailor of Choice Broking have identified five stocks to buy for the next 1-2 weeks. According to Upadhyay's recommendations, Sumitomo Chemical India has a target price of ₹595 with a stop loss at ₹484, while Home First Finance Company India is recommended with a target price of ₹1,380 and stop loss at ₹1,175. Tailor's picks include Coforge with a target price of ₹1,685 and stop loss at ₹1,465, Viyash Scientific targeting ₹310 with stop loss at ₹270, and Aptus Value Housing Finance India with a target price of ₹315 and stop loss at ₹274.
According to Upadhyay's analysis, Sumitomo Chemical India has confirmed a breakout from an inverted head and shoulders pattern backed by strong volume participation, trading comfortably above its 50-day and 100-day EMAs. Home First Finance Company India has staged a strong recovery from lower levels, confirming a breakout above its falling trendline and key horizontal resistance zone. Aptus Value Housing Finance India has formed a bullish inverted head and shoulders pattern, trading above its 50-day and 100-day EMAs following a positive moving average crossover. Tailor notes that Coforge continues to maintain a strong bullish structure, taking consistent support from its rising upward trendline, while Viyash Scientific maintains a strong higher-high–higher-low formation with all key moving averages sloping upward.
As reported by experts, escalating tensions in the Middle East and Brent crude near $85 per barrel remain key headwinds as they have raised concerns over inflation and higher global interest rates. According to Upadhyay, every fall can be seen as an opportunity to build fresh long positions, with the Nifty 50 likely to remain range-bound. The momentum indicators remain supportive, with the MACD in positive territory for Sumitomo Chemical and RSI climbing to around 60.5 for Coforge, reflecting strengthening buying momentum. However, experts caution that traders should maintain proper risk management levels and consider the current market volatility due to geopolitical tensions and commodity price movements.
