Trade Setup for July 3: Nifty slips below 25,500: Stocks to watch tomorrow

The Nifty 50 index opened higher on July 2 but soon faced heavy selling pressure, shedding 230 points from its intraday high of 25,608. Despite a late-session recovery attempt, the index closed 88 points lower at 25,453, slipping below the crucial 25,500 mark. Financial stocks remained under pressure, contributing significantly to the decline.

Top gainers included Tata Steel, JSW Steel, and Asian Paints, while Shriram Finance, HDFC Life, and IndusInd Bank were among the top losers. The Nifty Midcap 100 dropped 0.14% and the Nifty Smallcap 100 fell 0.41%, reflecting broader profit-booking.

Sector-wise, metals, consumer durables, and healthcare showed resilience, while realty, financial services, and PSU banks dragged the market lower. Foreign Institutional Investors (FIIs) remained net sellers, while Domestic Institutional Investors (DIIs) absorbed the pressure as net buyers.

Analysts suggest immediate support at previous swing highs of 25,317 and 25,222. Nandish Shah of HDFC Securities identifies the 25,640–25,740 range as a resistance band. Rupak De of LKP Securities highlighted the importance of the 25,300 level, aligning with the 38.2% Fibonacci retracement zone.

A decisive move above 25,500 could indicate short-term recovery, while a breach below 25,300 may deepen the correction phase.

Stocks to Watch on July 3:

Hindustan Zinc: Q1 mined metal output up 1% YoY at 265 kt; saleable metal and refined zinc production down sequentially and annually.

Nestle India: Commissions new ₹105 crore Maggi noodles line at Sanand, Gujarat.

Aurobindo Pharma: Subsidiary secures European Commission approval for Dazublys.

RVNL: Appoints Chandan Kumar Verma as CFO effective July 2.

Voltas: Receives ₹265.25 crore GST demand notice for FY19–FY21.

Coromandel International: Gets CCI clearance to acquire 53.13% stake in NACL Industries.

Indian Bank: Reduces MCLR by 5 basis points for most tenures, effective July 3.