Trade Setup for July 18: Nifty struggles to hold 25,000 as markets await Reliance results

On July 17, the Nifty faced a turbulent session, ultimately closing 101 points lower at 25,111. Despite a flat-to-positive start, the index succumbed to selling pressure during the second half of the trading day, ending near the session’s low.

The day’s losses came amid heightened caution ahead of major earnings, including those from Reliance Industries, JSW Steel, Hindustan Zinc, Bandhan Bank, and IndiaMART Intermesh—all scheduled for release on Friday.

Top gainers on the Nifty included Tata Consumers, Tata Steel, and Hindalco, while Tech Mahindra, IndusInd Bank, and Infosys were among the laggards. Broader market indices mirrored the weakness—Nifty Midcap 100 declined 0.17%, and the Smallcap 100 slipped 0.12%.

Sectorally, Realty, Metal, and Consumer Durables showed some resilience. However, steep declines in IT and Banking stocks dragged the overall sentiment. FIIs were net sellers in the cash segment, while domestic institutional investors bought into the dip.

Stocks like Wipro, Axis Bank, Jio Financial Services, and Indian Hotels will also be in focus after their results were released post-market on Thursday.

Technical View

Analysts suggest that Nifty’s bounce near the 25,000 level looks weak, raising concerns about a possible retest of the 24,900–25,000 zone.

Nandish Shah (HDFC Securities) noted that the index failed to sustain above the 20-day EMA (currently at 25,232), signaling continued choppiness. “Support lies at 25,000, below which longs should be avoided,” he advised.

Rupak De (LKP Securities) flagged a bearish sentiment. "The Nifty couldn't cross the 25,260 mark. A downside move toward 24,900 is likely if bearish momentum sustains."

Hardik Matalia (Choice Equity Broking) added that while 25,000 is immediate support, a decisive fall below 24,900–24,700 could trigger a deeper correction. On the upside, 25,400–25,500 is the hurdle to watch.

In summary, traders will closely watch Friday’s earnings announcements and the 25,000 mark, which could dictate the short-term market direction.