Two stocks recommended by MarketSmith India for 7 July:
SAPPHIRE Foods (current price: ₹ 336.75)
Why it’s recommended: Network expansion, strong sales recovery, ESG excellence, strong brand and product innovation.
Key metrics: P/E: 192 | 52-week high: ₹401 | Volume: ₹920 crore
Technical analysis: Trend line breakout, trending above all its key moving averages.
Risk factors: Margin squeeze due to rising input cost, high leverage, franchisee dispute
Buy at: ₹336
Target price: ₹390 in two to three months
Stop loss: ₹315
Krishna Institute of Medical Sciences (current price: ₹686)
Why it’s recommended: Robust revenue and profit expansion, rapid network expansion, operational efficiency, macro tailwind, brand value creation.
Key metrics: P/E: 71.25 | 52-week high: ₹ 708 | Volume: ₹81.70 crore
Technical analysis: Trend line breakout, trending near all-time high level
Risk factors: Margin pressure from expansion, high leverage, execution delays, regulatory uncertainties.
Buy at: ₹686
Target price: ₹825 in two to three months
Stop loss: ₹624
How Nifty 50 performed on 4 July
On Friday, the Nifty 50 opened on a positive note but traded with a negative bias during the first half of the session. However, it recovered from the day’s low in the latter half and closed on a positive note. The daily price action formed a bullish candle with a lower wick, indicating intraday recovery and buying interest at lower levels. Barring Nifty Metal and Auto, all major sectoral indices closed in the green, with banking and financials, realty, pharma, IT, and FMCG showing relative outperformance. The market breadth was marginally positive, settling at a 5:4 ratio.
On a weekly basis, the Nifty 50 traded in a volatile manner and declined approximately 0.69%, forming a narrow-range bearish candle on the weekly chart. Despite the negative weekly close, the broader price structure and market sentiment remain bullish, indicating that the ongoing weakness is likely a phase of consolidation rather than a trend reversal.
Technically, the Nifty 50 continues to exhibit a strong bullish structure, trading above all its key moving averages across multiple timeframes, reinforcing the prevailing uptrend. While recent price action indicates short-term consolidation, the broader momentum remains intact. The relative strength index (RSI) is positioned around 64 on both the daily and weekly charts, maintaining a bullish trajectory. Additionally, the MACD continues to reflect a positive crossover on both timeframes, further supporting the underlying strength and potential for a resumed upward move.
According to O’Neil’s methodology of market direction, the Nifty reclaimed its recent high of 25,116. Hence, the market status has been upgraded to a Confirmed Uptrend as of 11 June 2025.
The Nifty 50 traded in a volatile manner throughout the week. However, the broader positional bullish sentiment remains intact. Despite short-term fluctuations, the underlying market tone remains constructive, with the potential for an upward resumption in the sessions ahead. In the near term, the index is likely to remain range-bound or experience choppy movement. Key support levels are placed at 25,200 and 25,000, while resistance on the upside is expected to be around 25,700.
How Nifty Bank performed yesterday
Nifty Bank faced resistance near 57,600 and witnessed sustained profit booking over the week, except on Friday, resulting in a weekly decline of approximately 0.70%. On the weekly chart, the index formed a small bearish candle with a lower shadow, indicating buying interest emerging at lower levels during Friday’s session. The weakness was primarily led by heavyweights such as HDFC Bank, ICICI Bank, and Kotak Mahindra Bank. In line with this trend, the Nifty Financial Services Index (FINNIFTY) also underperformed, declining around 1.75%, reflecting broader softness across the financial space.
Technically, the Nifty Bank continues to trade above all its key moving averages across multiple timeframes, reaffirming the strength of the broader bullish trend. However, momentum indicators on the daily chart suggest near-term consolidation, with the relative strength index (RSI) exhibiting a downward slope and hovering around 54, while the MACD remains flat but above the central line. In contrast, the weekly RSI is trending bullish around 65, and the MACD maintains a positive crossover, signalling that the medium-term outlook continues to favour the bulls despite short-term consolidation.
As per O’Neil’s methodology of market direction, the Nifty Bank remains in a “Confirmed Uptrend”, a trend it has sustained over the past few weeks.
The index witnessed profit booking at higher levels and traded in a sideways range between 56,600-57,600 during the week, eventually managing to close above 57,000 on a weekly basis. The overall sentiment remains bullish, and sustained trading above 57,000 could pave the way for a potential move toward 58,500-59,000 in the coming sessions. Conversely, a failure to hold above 57,000 may lead to increased volatility, keeping the index confined within 57,000-56,000.
MarketSmith India 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, developed 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.
