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Below the Quote on Pre-Market Comment 04 July 2025 by Hardik Matalia, Research Analyst, Choice Broking Ltd

Indian benchmark indices are likely to open on a flat to slightly positive note today, as indicated by the GIFT Nifty, which suggests a marginal gain of approximately 19 points in the Nifty 50. Market sentiment remains mildly indecisive, following a cautious close in the previous trading session.

The Nifty 50 opened on a positive note but failed to sustain momentum, breaching its intraday support at 25,450 and forming a bearish candlestick pattern on the daily chart. This development may signal a potential trend reversal; however, further confirmation is awaited. A sustained move above 25,600 could pave the way for a rally toward 25,750. On the downside, immediate support is seen at 25,222 and 25,120, which could act as potential entry levels for long positions.

Meanwhile, the Bank Nifty index also closed lower, declining by 207 points and forming a bearish candle, indicating mounting selling pressure. A decisive break below the key support level of 56,700 may lead to further downside, with subsequent support levels at 56,500 and 56,300. However, if these supports hold and a reversal is observed, it may present fresh buying opportunities. On the upside, resistance is seen at 57,000 and 57,200, with a breakout above this zone potentially triggering a move toward 57,500.

On the institutional front, Foreign Institutional Investors (FIIs) extended their selling streak for the fourth consecutive day, offloading equities worth Rs.1,481 crore on July 3. In contrast, Domestic Institutional Investors (DIIs) continued their buying activity, purchasing equities worth Rs.1,333 crore on the same day.

In the current environment of heightened volatility and mixed cues, traders are advised to adopt a cautious "buy-on-dips" strategy, especially when trading with leverage. Booking partial profits during rallies and using tight trailing stop-losses will help manage risk effectively. Fresh long positions should be considered only if the Nifty sustains above the 25,600 level. While the broader market sentiment remains cautiously bullish, it is crucial to monitor key technical levels and evolving global cues closely.

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