Markets opened on a cautious note on Friday, with the Sensex opening at 82,193.62, slightly lower than its previous close of 82,259.24, and slipping further to 81,969.08 at 9:50 am, down 290.16 points or 0.35 per cent. The Nifty 50 also opened flat at 25,108.55 compared to its previous close of 25,111.45, before declining to 25,034.70 at 9:50 am, down 76.75 points or 0.31 per cent. This subdued start came despite buoyant global sentiment, with Wall Street hitting fresh record highs.
Foreign Institutional Investors (FIIs) continued their selling spree for the second consecutive session on Thursday, offloading equities worth ₹3,694 crore, while Domestic Institutional Investors (DIIs) maintained their buying momentum for the ninth straight session, purchasing equities worth ₹2,820 crore.
“There is a clear pattern in FII activity this year so far. They were sellers in the first three months. For the next three months they turned buyers. And in the seventh month the trends so far indicate further selling unless some positive news reverse the downtrend in the market,” said Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited.
The broader market sentiment remained subdued with the benchmark index forming a bearish marubozu candlestick pattern on Thursday’s daily timeframe. Technical analysts noted that the Nifty has struggled to sustain above its crucial 20-day EMA for three straight sessions, indicating short-term weakness.
“The nifty ended down for the fifth time in seven days yesterday, but the market is still holding above the rising trendline drawn from the May 9 lows,” said Akshay Chinchalkar, Head of Research at Axis Securities. “Technically speaking, the daily candle completed a bearish engulfing pattern.”
Among individual stocks, Wipro emerged as the top gainer on the Nifty 50, surging 2.36 per cent to ₹266.75, followed by Tata Steel which gained 1.33 per cent to ₹162.03. Mahindra & Mahindra advanced 0.74 per cent to ₹3,218.60, while Power Grid Corporation rose 0.46 per cent to ₹297.95 and ONGC climbed 0.44 per cent to ₹244.94.
On the downside, Axis Bank faced significant selling pressure, declining 4.05 per cent to ₹1,112.80, making it the worst performer on the index. SBI Life Insurance dropped 1.38 per cent to ₹1,777.90, while Tech Mahindra fell 0.98 per cent to ₹1,548.30. Kotak Mahindra Bank declined 0.94 per cent to ₹2,148.00 and Eicher Motors dropped 0.89 per cent to ₹257.35.
The Bank Nifty underperformed significantly, closing lower by 358.80 points (0.63 per cent) in the previous session and forming a strong bearish candle on the daily chart. “We will be awaiting the important result outcome of the major frontline banking stocks like HDFC Bank and ICICI Bank, which is due in the coming sessions,” said Vaishali Parekh, Vice President – Technical Research at PL Capital.
Market participants are particularly focused on HDFC Bank’s upcoming announcement of its first-ever bonus issue, which could provide direction to the banking sector. Key quarterly results scheduled for the day include Bandhan Bank, LT Financial, and JSW Steel.
“A significant feature of economic activity in India during the recent years has been the resilience of luxury consumption and weakness in mass consumption. Early indications from Q1 results — good results from hotels industry — indicate continuation of this trend,” noted Vijayakumar.
The commodities space showed mixed signals, with gold finding support from geopolitical tensions despite strong US economic data reducing expectations for immediate Federal Reserve rate cuts. “Safe-heaven support for gold persisted due to President Trump’s plan to notify over 150 countries of new tariff rates and heightened geopolitical tensions from the Russia-Ukraine conflict and unrest in the Middle East,” said Rahul Kalantri, VP Commodities at Mehta Equities Ltd.
Crude oil traded around $66.80, supported by supply disruptions from drone attacks in Iraq’s Kurdistan and escalating Middle East tensions. However, the commodity remained headed for a weekly decline of more than 1 per cent as easing sanction fears softened supply-side concerns.
From a technical perspective, analysts identified key support levels for the Nifty at 25,000-24,960, with immediate resistance at 25,220-25,250. “Given the current environment of heightened volatility and mixed signals, traders are advised to adopt a cautious ‘sell-on-rise’ approach, especially when using leverage,” advised Hardik Matalia, Derivative Analyst at Choice Equity Broking Private Limited.
The market’s cautious stance reflects concerns over elevated valuations in India compared to cheaper valuations in other markets, which continue to influence FII activity. Options data suggests a trading range of 24,500-26,500 for the Nifty, with 25,200 strike showing significant call open interest and 25,100 strike having substantial put open interest.
Despite the near-term challenges, some analysts maintain a constructive view on selective sectors. “Technically, Nifty PSU Bank, Pharma, Healthcare, Automobile, Consumer Durable, FMCG and India Tourism are likely to outperform in the short term. On the flip side, Nifty Defence and IT are likely to underperform in the short term,” according to SBI Securities’ morning outlook.
The India VIX, which measures market volatility, ended flat in the previous session, indicating a relatively stable fear gauge despite the underlying market weakness. Market participants will closely monitor global cues and domestic corporate earnings to gauge the next direction for Indian equities.
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Published on July 18, 2025