Indian markets snapped their four-day winning streak on Tuesday, July 7, 2026, with the Sensex dropping 104 points, or 0.13%, to end at 78,180.72 and the Nifty 50 shedding 32 points, or 0.13%, to finish at 24,398.70. The decline was driven by profit booking as fresh strikes between the US and Iran drove up crude oil prices, weighing on market sentiment. Selling was seen across all segments, with the Nifty Midcap 100 and Smallcap 100 indices also ending lower, down 0.30% and 0.55% respectively. The overall market capitalization of BSE-listed firms dropped to below ₹480 trillion from ₹482.3 trillion in the previous session. Despite steady monsoon progress, lower crude oil prices, and renewed foreign inflows, investors turned cautious ahead of the earnings season.
Market expert Raja Venkatraman from NeoTrader has recommended three stocks for trading on July 8. DALBHARAT (current market price ₹1,788.80) is recommended as a buy above ₹1,790 with stop loss at ₹1,730 and target price of ₹1,925 (2 months). The leading Indian cement manufacturer is benefiting from the real estate sector's revival with P/E ratio of 682.97 and 52-week high of ₹1,294. DABUR (current market price ₹453.50) is suggested as a buy above ₹455 with stop loss ₹430 and target ₹505 (2 months), focusing on the FMCG sector's recovery after consolidation around 420-430 zones. LGEINDIA (current market price ₹1,572.30) is recommended as a buy above ₹1,575 with stop loss ₹1,500 and target ₹1,750 (2 months), benefiting from the consumer electronics sector's revival with P/E ratio of 63.33 and 52-week high of ₹1,749.
The market decline was broad-based with twelve of sixteen sectors closing in the red, reflecting consolidation and profit-booking at higher levels. However, the IT index rose 2.4%, extending its July rebound to 6.2%, with Tata Consultancy Services set to kick off quarterly results later in the week. Reliance Industries and ICICI Bank dragged the benchmarks, while Trent plunged over 12% on weaker-than-expected revenue growth. Despite the overall decline, Titan gained 2.7% after strong consumer business growth, showing selective strength in certain sectors. The Nifty Midcap 100 and Smallcap 100 indices also softened, down 0.30% and 0.55% respectively, indicating weakness across broader market segments.
According to Venkatraman's analysis, markets have managed to hold on to the rebound seen over recent days, displaying a sense of hope as 24,000 as a key level continues to be held. The Nifty has managed to close above the median line on daily charts, with the Relative Strength Index showing intent to move higher supported by open interest data at 24100. The expert notes that the time for reacting to this volatile rise in a matter of one month has been quite swift, with the market offering many opportunities to get into the rally. The option build-up at the time of expiry shows concentration at 24,000, with the July series beginning with a positive bias in Nifty and Bank Nifty that had started retiring the bearish outlook. Every pullback should be considered as a buying opportunity, as the market's persistent inability to sustain trends at higher levels continues to act as a drag, making it a "buy on dips, sell on rallies" playground.
