Another quiet session for the markets: Nifty continues below 25,200; Sharp cut in Metal, finance and auto

By Admin

16 Jul, 2025

The Indian stock markets opened on a muted note this Wednesday, continuing their cautious trend amid ongoing global uncertainties. The Nifty slipped further below the 25,200 mark, weighed down by sharp corrections in the metal, finance, and auto sectors. Investors remained on edge, with market momentum lacking due to soft global cues and anticipation around Q1 earnings.

Markets Open Lower Amid Global Concerns

The Sensex opened at 82,527.82, marginally down by 0.05%, while the Nifty began the session at 25,169.55, slipping 0.10%. Despite the broader weakness, the Bank Nifty showed early strength, opening in green at 57,096.60, gaining 0.20%, offering some hope for bulls.

The cautious sentiment comes as Asian markets traded subdued, reacting to reports of a fresh trade arrangement between the US and Indonesia, which included a 19% tariff on Indonesian imports. Japan’s Nikkei 225 opened flat, while the Topix slipped 0.11%. South Korea’s Kospi and Kosdaq dropped by 0.5% and 0.56%, respectively, further dampening investor morale.

Top Gainers and Losers

Despite the cautious tone, a few stocks managed to register gains in early trade. Among the top gainers on the Sensex were:

• HDFC Bank
  
  

• UltraTech Cement
  
  

• HCL Technologies
  
  

• NTPC
  
  

• Bharti Airtel
  
  

On the flip side, the key laggards included:

• Eternal
  
  

• Reliance Industries
  
  

• TCS
  
  

• Asian Paints
  
  

These counters were under pressure due to global weakness and sector-specific challenges.

Q1 Earnings: A Critical Driver Today

Market participants are keenly watching Q1 results, as 17 companies are scheduled to report earnings today. Key names to watch include:

• Tech Mahindra
  
  

• ITC Hotels
  
  

• LT Technology Services
  
  

• Angel One
  
  

• Kalpataru Projects
  
  

• IXIGO (Le Travenues Technology)
  
  

• DB Corp
  
  

Smaller firms like Lotus Chocolate, Oriental Hotels, Heubach Colorants, JTL Industries, and Tree House Education are also in focus. These reports will likely set the tone for stock-specific moves in the upcoming sessions.

Sectoral Weakness: Metals, Finance, and Auto Drag

A noticeable sharp correction was seen in the metal, finance, and auto sectors, pulling the Nifty down. These sectors are particularly sensitive to global cues, and the recent US-Indonesia tariff announcement has added to the volatility in commodity-linked and export-dependent counters.

Technical Outlook: Crucial Levels to Watch

According to Shrikant Chouhan, Head of Equity Research at Kotak Securities, the Nifty has short-term support at 25,150, and if that holds, a bounce-back towards 25,250 (20-day SMA) is possible. On the upside, crossing 25,250 could open the door to 25,500 or even 25,800.

However, if the index breaks below 25,150, a decline toward 25,000 or even 24,800 could follow.

Chouhan also noted that the Bank Nifty is showing resilience, not participating in the broader downtrend. “Above 57,100, Bank Nifty could aim for 57,500 or 57,600,” he said.

For intraday traders, Chouhan advises:

• Buy above 25,250 with a stop loss at 25,150
  
  

• Targets could be 25,350 or 25,500
  
  

• If 25,150 breaks, watch for a potential slide to 25,000 or 24,900
  
  

Stay Updated and Informed

With the market sentiment delicately balanced between global developments and domestic earnings, it’s crucial to stay informed. Track Nifty 50 and BSE Sensex movements, get expert views, and explore strategies to navigate the volatility.

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