Week Ending July 18th 2025

Dear patrons, the Indian markets spent the entire last week, consolidating in a narrow range and closed at the lower end of the range on last trading session. Benchmark Nifty lost close to three quarters of a percent over the week to close below 25000 for the first time in July. BankNifty was weaker of the two indices owing to poor set of numbers by one of the premier banks i.e. Axis Bank.

Corporate results, as stated in the last blog have played the spoil sport. None of the major results could manage to lift the market mood be it from banking space or IT. The mood, however, can turn bullish if big companies announce good results over the weekend. Corporate behemoth Reliance Industries declared good result for Q1FY26, which, may enthuse the markets. It posted a 25% growth in profits YoY. Banking bigwigs ICICIBANK & HDFCBANK posted decent results and should provide a much-needed boost to bulls to carry the markets northwards.

In another good news for the markets and the economy, inflation is at 77 months low of 2.1%, paving way for yet another rate cut for the RBI.

Globally, the US markets are surging ahead every passing day. Nasdaq and S&P 500 both made new lifetime highs. The Dow Jones has also been moving up gradually. Inflationary pressure, however, is still lurking large on the US markets. European markets were also quite upbeat over the week.

Let us take a look at the charts and try to figure out what lies in store for the coming week

As mentioned in the previous blog Nifty moved downwards towards 24900 last week. (You may read it here Weekly Market Update: Week Ending July 11th 2025). For the coming week Nifty should find support around 24800 while resistance is placed around 25200. Nifty needs to close above 25300 for more upside to commence. A close below 24750 may lead to further downside. As long as Nifty remains above 24500 it is a "Buy-On-Dips" market.

As stated in the last blog BankNifty fell towards 56000 in one swift move to close around 56300. It has strong support around 56000. Break below 56000 may lead to another 1000 point cut in BankNifty. On the upside 56700-56800 should act as resistance. Move beyond 56800 should lead the BankNifty towards new lifetime high levels.

Traders need to be cautious ahead of results in stocks, as wild moves on either side can't be ruled out. Adhering to strict stop losses would prove to be a blessing. There should be lot of opportunity on either side for traders. Investors may look to accumulate good quality stocks in the current fall.

"The markets are like a weather; you may not like it, but you have to bear it." ~ Rakesh Jhunjhunwala

P.S.: This communication is for educational purpose only and does not recommend buying or selling any stock or index. Trade at your own risk.