The domestic market experienced significant volatility during the week ended Friday, 10 July, primarily driven by a sharp spike in the volatility index, India VIX. According to reports from Mint, the volatility index surged 26% on 8 July, reflecting increased investor nervousness and uncertainty. The benchmark Nifty 50 crashed 2.12% on the same day, though sentiment improved in the latter half of the week, leading to a moderation in volatility with the India VIX closing nearly 4% higher and the Nifty 50 ending with a modest decline of 0.26% on a weekly basis. Market sentiment remains positive despite recent volatility, with Nifty holding key support levels, as highlighted by LKP Securities.
From a technical perspective, Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, believes the broader market structure continues to remain constructive. As reported by Mint, Patel noted that there is a possibility of one more corrective leg towards the 6 June bullish gap near 23,650, which would complete an ABC corrective pattern on the daily chart. The 24,300–24,600 zone is expected to act as a strong supply zone on the upside, while 23,800 remains the immediate support followed by the strong support zone near 23,500.
Jigar Patel recommends buying three stocks for the next 1-2 weeks with specific entry and exit parameters. According to Mint reports, Swiggy is recommended with a previous close of ₹273.25, buy range between ₹265–₹275, target price of ₹320, and stop loss at ₹245. Tata Power Company is suggested with a previous close of ₹381.30, buy range between ₹375–₹383, target price of ₹416, and stop loss at ₹360. Mangalore Refinery and Petrochemicals (MRPL) is recommended with a previous close of ₹162.49, buy range between ₹156–₹164, target price of ₹192, and stop loss at ₹144.
For Swiggy, Patel highlighted that the share price appears at the early stage of a medium-term trend reversal after completing a probable five-wave corrective decline, with the recent sharp recovery suggesting the formation of an A-B-C bullish corrective structure. As reported by Mint, the stock has witnessed a strong surge in cumulative volume delta (CVD), indicating fresh institutional accumulation. For Tata Power, the analysis shows early signs of potential reversal after completing an ABCD corrective pattern, with the recent pullback retracing nearly 78.6% of the previous up move. The cumulative volume delta (CVD) has formed a bullish divergence, indicating easing selling pressure despite lower price lows.
For Bank Nifty, Patel noted that since the 200 EMA and 200 SMA are flat on the daily chart, back-and-forth movement may continue. According to Mint reports, a major breakout will be confirmed only above the 59,000 mark. A decisive close above 59,000 would confirm a fresh leg of the uptrend and open the door for higher levels, whereas a break below 57,000 could trigger a short-term corrective phase. The broader market structure remains positive with a 'buy on dips' strategy, as long as key support and resistance levels hold.
