The benchmark indices closed flat after a range-bound trading session on July 16, with weakness in market breadth. According to reports from Moneycontrol, about 1,673 shares declined compared to 1,307 advancing shares on the NSE. The market is expected to trade within the previous week's range, and a decisive breakout on either side is needed for a firm directional move going forward. Technical analysts are recommending selective stock picks based on specific technical patterns and chart formations.
Jay Mehta, Technical Research at JM Financial Services, recommends Deepak Nitrite with a current market price of ₹1,741.8. The stock has corrected significantly from its all-time high of ₹3,200 down to ₹1,280 levels and is forming a bullish inverse head-and-shoulders reversal pattern. Kajaria Ceramics at ₹1,241.8 has broken out above a key resistance trendline and formed a bullish pole and pennant pattern. Sobha at ₹1,493 has given a breakout above a bullish head-and-shoulders pattern on July 10, with strong volume participation during the breakout.
CESC at ₹166.01 has formed a bullish engulfing pattern near ₹158 level at the lower band of a descending channel, with the stock gaining over 1.5 percent in the recent session. UPL at ₹625.85 has confirmed a double bottom pattern and gained nearly 4.8 percent on Thursday, reclaiming its 20-day SMA. Kaynes Technology India at ₹3,438.8 has been following a rising trendline since June and formed a strong bullish candle, gaining over 3 percent on Thursday. Deepak Fertilisers at ₹1,601.1 is exhibiting a strong bullish structure with a well-defined higher high–higher low formation.
Technical analysts have provided specific targets and stop-loss levels for the recommended stocks. Deepak Nitrite targets ₹1,855 and ₹1,900 with a stop-loss at ₹1,610. Kajaria Ceramics has targets of ₹1,325 and ₹1,400 with a stop-loss at ₹1,176. Sobha targets ₹1,645 and ₹1,680 with a stop-loss at ₹1,428. Other stocks like Ramkrishna Forgings target ₹650 with a stop-loss at ₹560, while SRF targets ₹3,150 with a stop-loss at ₹2,750. All recommendations include specific entry points, risk management levels, and technical indicators supporting the bullish outlook.
