MarketSmith India has released its stock recommendations for July 3, 2025, providing insights into potential investment opportunities. These picks are based on the CAN SLIM methodology, a system that focuses on factors like earnings growth, strong relative price strength, and leadership in their respective industries.
Recap of Market Performance
On July 1, 2025, the Indian stock market indices, Sensex and Nifty 50, closed with modest gains. The Sensex increased by 91 points (0.11%) to reach 83,697.29, while the Nifty 50 rose by 25 points (0.10%), settling at 25,541.80. Bharat Electronics (BEL), Reliance Industries, and HDFC Bank were key drivers of this upward movement. However, broader market indicators underperformed, with the BSE Midcap index dipping 0.07% and the Smallcap index falling 0.18%.
Stock Recommendations
For July 2, 2025, MarketSmith India recommended the following stocks:
- HBL Engineering Ltd: With a current price of ₹620.40, MarketSmith suggested buying this stock due to large recurring railway contracts, growth in EV mobility products, a strong order book, and improved corporate governance. Key metrics included a P/E ratio of 62.65 and a 52-week high of ₹664. The target price was set at ₹760 within two to three months, with a stop loss at ₹555. Risk factors to consider were high valuation, short-term margin pressure, dependence on railway capex, and regulatory approvals.
- GMDC Ltd: At a current price of ₹420.35, GMDC was recommended due to robust mining output and revenue growth, expansion in power and renewable energy, and efficient cost and margin efficiency. The stock had a P/E ratio of 19.54 and a 52-week high of ₹440. The target price was ₹500 within two to three months, with a stop loss at ₹384. Risk factors included high dependence on lignite, regulatory and environmental risk, commodity price volatility, and working capital stress.
Additional Stock Picks
Motilal Oswal also reported on MarketSmith India's recommendations, including:
- Colgate-Palmolive (India) Ltd: Recommended to buy at ₹2,508, with a target price of ₹2,890 in three months and a stop loss at ₹2,310.
- United Spirits: Recommended to buy at ₹1,451, with a target price of ₹1,650 in three months and a stop loss at ₹1,370.
- Hikal Ltd: Current market price ₹403.75, with a buy range of ₹395-405, a profit goal of ₹475, a stop loss at ₹365, and a timeframe of 2-3 months.
- Shilpa Medicare Ltd: Current market price ₹873.25, with a buy range of ₹860-875, a profit goal of ₹1,040, a stop loss at ₹808, and a timeframe of 2-3 months.
- Azad Engineering Ltd: Current market price ₹1,579.05, with a buy range of ₹1,550-1,580, a profit goal of ₹1890, a stop loss at ₹1,427, and a timeframe of 1-2 months.
Market Trends and Analysis
The Nifty 50 maintained a bullish trend, trading above key moving averages. Positive momentum was indicated by an RSI of around 64 and a bullish MACD crossover. MarketSmith India's methodology suggested a shift to a Confirmed Uptrend, reinforcing the bullish sentiment. Holding above 57,000 could potentially push the index towards 58,500–59,000, with support levels at 56,500 and 56,000.
Disclaimer: It's important to note that these recommendations are based on individual analyst opinions and should not be taken as definitive investment advice. Consulting with certified experts before making any investment decisions is crucial.
