MarketSmith India’s top picks for 25 July

Two stock recommendations for today by MarketSmith India:

GlaxoSmithKline Pharmaceuticals Ltd (current price: ₹3,156)

Why it’s recommended: Focus on innovation and global pipeline, strong financial position and cash reserves, operational excellence, and supply chain strength

Key metrics: P/E: 57.40 | 52-week high: ₹ 3,515.70 | Volume: ₹ 20.31Cr.

Technical analysis: Witness buying interest from a lower level.

Risk factors: Regulatory and compliance risk, product concentration risk, foreign exchange, and global integration risks.

Buy: ₹3,156

Target price: ₹3,560 in two to three months.

Stop loss: ₹2,990

India Pesticides Ltd (current price: ₹228)

Why it’s recommended: Strong volume-led revenue growth, capacity expansion and backwards integration, China‑plus‑one trend and export demand.

Key metrics: P/E: 30.61 | 52-week high: ₹431 | Volume: ₹26.98 crore.

Technical analysis: Tight range breakout.

Risk factors: Product and customer concentration, price competition and market fragmentation.

Buy at: ₹228

Target price: ₹265 in two to three months.

Stop loss: ₹212

How Nifty 50 performed on 24 July

The Nifty 50 opened on a flat note and remained under pressure throughout the session, closing near the day’s low and forming a bearish candlestick on the daily chart. Market sentiment was weighed down by the weakness in key sectors, such as IT, FMCG, and private banking, along with broader market indices, which collectively dragged the index lower. On the positive side, PSU banking and pharmaceutical stocks showed resilience and ended in the green. The advance-decline ratio remained negative, closing at approximately 2:3 in favour of decliners.

The Nifty 50 continues to consolidate within a defined range, trading between its 50-DMA and 21-DMA. This reflects a lack of clear directional momentum in the short term. On the technical front, the Relative Strength Index (RSI) remains in a bearish trajectory, currently hovering around the 48 level, suggesting weakening momentum. Additionally, the MACD has formed a negative crossover, further reinforcing the cautious outlook and signalling the potential for continued consolidation or downside pressure in the near term.

According to O’Neil’s market direction methodology, market status has been downgraded to an “Uptrend Under Pressure” as the Nifty breached its “50-DMA” and the “distribution day count” rose to five.

The Nifty 50 continued to trend with a negative bias on Thursday, closing below the 25,100 mark amid broad-based selling pressure. Going forward, the 25,000-24,900 zone will be a critical support area to watch; a sustained move below this range could signal further downside in the near term. On the upside, immediate resistance is seen near 25,300. A decisive breakout and sustained move above this level would be crucial to restore bullish momentum and improve market sentiment in the days ahead.

How Nifty Bank performed yesterday

On Thursday, the Nifty Bank traded in a narrow range and closed with a modest loss of 0.25%, forming a small bearish candle on the daily chart. The index exhibited sectoral divergence, as private banks came under pressure while PSU banking stocks outperformed and ended in positive territory. Despite the weakness, the index held firm above the 57,000 level. Meanwhile, the FINNIFTY index extended its decline, falling 0.62%, signalling broader weakness across the financial sector.

The index is currently trading above all key moving averages, suggesting underlying strength; however, it has been in a sideways consolidation phase for the past three weeks. The RSI is also moving sideways and is positioned around the 54 level, reinforcing the lack of clear, directional momentum. Similarly, the MACD remains above its central line but continues to exhibit a negative crossover. This technical setup indicates a mixed outlook.

According to O’Neil’s Market Direction Model, the Nifty Bank remains in a ‘Confirmed Uptrend’, a status it has successfully maintained over the past few weeks.

The Nifty Bank has been consolidating within a defined range of 57,500-56,000 over the past three weeks, indicating a lack of clear directional bias. A decisive breakout above or breakdown below this range is likely to set the tone for the next leg of movement. Until then, the ongoing sideways trend is expected to persist. On the technical front, strong resistance is observed near 57,500, while key support lies in the 56,200-56,000 zone.

MarketSmithIndia is a stock research platform and advisory service focused on the Indian stock market. It offers tools and resources to help investors make informed decisions based on the CAN SLIM methodology, founded by legendary investor William J. O’Neil. You can access a 10-day free trial by registering on its website.

Trade name: William O’Neil India Pvt. Ltd.

Sebi Registration No.: INH000015543

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.