According to Bajaj Broking's Deputy Vice President - Technical, Pabitro Mukherjee, the stock market benchmark Nifty 50 has started July on a strong note amid positive global cues, the revival of the monsoon, the appreciation of the rupee, and a sharp decline in oil prices over the last few weeks. The index has resumed its higher high formation after last month's high wave candle, though it dropped to levels near 24,200 during the session due to some profit booking. Mukherjee expects the index to maintain a positive bias and head towards 24,800, which is the trendline resistance joining the previous major breakdown area. A breakout above 24,800 can open further upside towards 25,100-25,200 levels in the coming months.
Mukherjee recommends buying the following five stocks for the next six months with specific buy ranges, target prices, and stop losses. Reliance Industries is recommended for purchase in the range of ₹1,295 to ₹1,320 with a target price of ₹1,425 and stop loss at ₹1,239. Bharti Airtel is suggested for buying in the range of ₹1,910 to ₹1,942 with a target of ₹2,125 and stop loss at ₹1,810. Bharat Electronics (BEL) is recommended for purchase in the range of ₹412 to ₹422 with a target of ₹464 and stop loss at ₹394. HDFC Bank is suggested for buying in the range of ₹810 to ₹835 with a target of ₹910 and stop loss at ₹760. ITC is recommended for purchase in the range of ₹286 to ₹292 with a target of ₹320 and stop loss at ₹270.
Reliance Industries shares remained under pressure on July 8, 2026, following the company's disclosure that SEBI had issued an administrative warning to its Company Secretary and Compliance Officer over alleged insider trading. According to the latest exchange filing, SEBI's warning relates to allegations that one immediate relative of an employee traded in Reliance Industries shares while allegedly in possession of Unpublished Price Sensitive Information (UPSI). The matter emerged from an investigation into trading activity between June 1, 2024, and August 30, 2024, during which three connected persons allegedly traded while possessing unpublished price-sensitive information. While the regulator's communication does not impose any financial or operational restrictions on the company, the disclosure weighed on investor sentiment, leading to a decline in the stock during Wednesday's trading session.
Mukherjee noted that Reliance Industries' share price has been consolidating over the past four weeks following the recent corrective decline and is currently near a crucial support zone. The stock has strong support around ₹1,250–₹1,280, which is the confluence of the 61.8% retracement of the April 2025-January 2026 up move, the 200-week EMA around ₹1,290, and the previous breakout area around ₹1,260-₹1,280. For Bharti Airtel, the stock has broken out above the last 4 months' consolidation range of ₹1,740 to ₹1,930, signalling continuation of the up move. The stock has taken 8 months to retrace just 61.8% of its previous 9 months' rally from ₹1,559 to ₹2,174. BEL has remained in a steady positive trend over the last 11 months, moving within a rising channel, while HDFC Bank has broken out above the last 12-week consolidation range of ₹820 to ₹732. ITC has undergone a corrective phase over the past 21 months and is currently consolidating near a crucial support zone.
According to Mukherjee's analysis, some consolidation cannot be ruled out in the Nifty, but the overall structure remains positive. Dips towards the 24,200-24,000 levels should be used to accumulate quality stocks in a staggered manner. Short-term support for the Nifty is revised higher towards 23,800-23,700 levels, with the index sustaining above this zone keeping the bias positive. The weekly 14-period RSI is at the cusp of issuing a buy signal for BEL, having moved above its nine-period average, while the monthly stochastic has rebounded from oversold territory for ITC, supporting positive bias. These technical indicators validate the positive bias across the recommended stocks and provide favorable risk-reward profiles for potential investors.
