Although the broader trend continues to favour the bears, Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities is not expecting a decisive breakdown below 23,600 unless selling pressure intensifies further in the Nifty 50.
As long as this support remains intact, the possibility of a pullback towards the 23,950–24,000 zone remains open. Hence, the 23,650–23,600 zone is likely to remain the key battleground for determining the market's near-term direction, he said.
Despite this weakness, Friday's recovery from the 61.8 percent Fibonacci retracement zone around 23,650–23,600 indicates that buyers are still defending this crucial support area.
Although the broader trend continues to favour the bears, we do not expect a decisive breakdown below 23,600 unless selling pressure intensifies further. United Spirits
However, a sustained breach below 23,600 would confirm renewed weakness and could trigger a sharper correction towards 23,450, followed by 23,300. Hence, the 23,650–23,600 zone is likely to remain the key battleground for determining the market's near-term direction.
Which two technically strong stocks would you recommend buying in the current market correction?
Manappuram Finance
Manappuram continues to display strength, moving in a higher high, higher low formation on the daily timeframe. The 20-day EMA has consistently acted as dynamic support, with the stock finding buying interest around this level multiple times over the past month. The rising ADX on the daily chart signals bullish trend strength, while the RSI has held firm near the 60 mark on the weekly timeframe before moving higher, reflecting strengthening bullish momentum.
Additionally, the MACD shows rising green histogram bars with the MACD line positioned above the signal line, further reinforcing the bullish bias and pointing to sustained upside potential. Hence, the accumulation is recommended in the zone of Rs 350-355 with a stop-loss of Rs 340. On the upside, it is likely to test the level of Rs 380 in the short term.
Titan Company
Titan Company delivered a decisive breakout from the Rs 4,680–4,505 range on the daily timeframe on July 21, followed by a healthy follow through move. Despite opening with a gap down on July 24 amid weak market sentiment, the stock quickly attracted buying interest and surged higher, forming a sizeable bullish candle. It now trades comfortably above key short and long term moving averages, reinforcing strength in the trend.
The ADX has risen sharply on the daily chart, signalling robust bullish momentum, while the MACD crossover on the weekly timeframe confirms positive traction. With consecutive weekly closes above the prior swing high of Rs 4,605, Titan's technical structure points to sustained upside potential. Hence, the accumulation is recommended in the zone of Rs 4,670-4,715 with a stop-loss of Rs 4,525. On the upside, it is likely to test the level of Rs 5,040 in the short term.
Do you expect Laurus Labs to maintain its bullish momentum, given that it has been forming a higher high-higher low pattern since March 2026?
Laurus Labs continues to maintain a strong higher high–higher low structure, with the 20-day EMA acting as a reliable dynamic support. The RSI has taken support near the 60 level on two occasions, highlighting sustained bullish momentum. Additionally, DI+ remains firmly above DI- on the ADX indicator, reflecting strong buying interest. The Rs 1,525–1,530 zone is a crucial support, and the stock is likely to extend its uptrend as long as it holds above this level.
Do you see further upside in Astral after its sharp rally over the past two weeks?
Following the gap-down on June 29, the stock consolidated within the Rs 1,311–1,423 range until July 21. It broke out on July 22, reclaiming its key short-term moving averages. The RSI is trending higher, indicating strengthening bullish momentum, while rising green MACD histogram bars reinforce the positive bias. The 20-day EMA zone of Rs 1,400–1,410 is expected to provide strong support for the ongoing pullback.
Do you believe the 56,000-55,500 zone will act as a strong support area for Bank Nifty next week, with a breach of this zone likely to strengthen the bears?
Bank Nifty's 56,000–55,800 zone remains a critical support area in the near term. The index recently attracted buying interest around the 56,000 mark and successfully reclaimed its 200-day EMA after briefly slipping below it, indicating that this region is acting as a strong demand zone. Adding to its significance, the support also aligns with the 50 percent Fibonacci retracement of the previous upmove, making it an important level for market participants to watch.
However, momentum indicators continue to suggest a sideways-to-negative bias, warranting caution. A decisive breach below 55,800 could strengthen bearish sentiment and trigger fresh selling pressure, potentially dragging the index towards 55,000 and then 54,400 in the short term.
On the upside, the 57,300–57,400 zone is likely to act as an immediate resistance. A sustained breakout above this hurdle would be essential to improve the near-term technical outlook and revive bullish momentum.
Do you expect United Spirits to extend its uptrend after surging 6.6 percent during the week following a couple of weeks of consolidation?
United Spirits confirmed a downward-sloping trendline breakout on the weekly chart three weeks ago, followed by a successful retest and a strong bullish candle. The stock trades above key moving averages with rising momentum. RSI remains above 60 on both daily and weekly charts, while a close above the upper Bollinger Band and widening DI+ over DI- reinforce a strong bullish setup with scope for further upside.
Does FII positioning indicate continued pressure on the market, or is there a possibility of a significant short-covering rally in the coming days?
FIIs remained net sellers on July 24, offloading Rs 3,893 crore, taking cumulative weekly outflows to Rs 7,182 crore, after selling Rs 9,120 crore in the previous week. Their index futures long-short ratio has declined sharply from 11.01 percent on July 17 to 8.63 percent, reflecting an aggressive build-up of short positions.
While such low readings have historically preceded sharp short-covering rallies, elevated geopolitical tensions, crude oil above $100 a barrel, a stronger US dollar, and rising US and Japanese bond yields are likely to keep markets under pressure until macro conditions improve.
Written by Sunil Sankar Matkar
Source : Moneycontrol
Disclaimer: The views and investment tips expressed by expert are their own and not those of us. We advises users to check with certified experts before taking any investment decisions.
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