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Below the Quote on Pre-Market Comment 16 July 2025 by Aakash Shah, Technical Research Analyst, Choice Broking Ltd

Indian benchmark indices are expected to open on a negative note today, as indicated by the GIFT Nifty, which suggests a marginal decline of around 94 points in the Nifty 50. Market sentiment remains mildly indecisive, following a cautious close in the previous session.

The Nifty 50 witnessed a sharp rebound after retesting the crucial 25,000 support zone, signaling renewed bullish momentum. The index closed above 25,250 and is now hovering near the 20-day EMA, which could confirm a continuation of the uptrend if sustained. Additionally, the formation of a bullish “Morning Star” pattern near support adds weight to the positive outlook. If the momentum holds, the index could rally toward the resistance levels of 25,400, 25,600, and potentially 26,000. Traders holding long positions should maintain a strict stop-loss at 25,000 while aiming for these short-term upside targets.

The Bank Nifty also displayed strength, closing above the crucial 57,000 mark and forming a bullish Morning Star candlestick pattern. A sustained move above 57,200 could open the door for a rally toward 58,000 and 58,700 in the near term. The 20-day EMA is acting as additional support, further reinforcing the positive momentum. Immediate support is seen at 56,700 and 56,400—key levels that must hold to preserve the bullish structure. The broader trend remains bullish as long as these support zones remain intact.

On the institutional front, Foreign Institutional Investors (FIIs) snapped their two-day selling streak, turning net buyers with purchases worth Rs.120 crore on July 15. Meanwhile, Domestic Institutional Investors (DIIs) extended their buying streak for the seventh consecutive session, investing Rs.1,555 crore on the same day.

Given the current environment marked by uncertainty and elevated volatility, traders are advised to adopt a cautious “wait and watch” approach, particularly with leveraged positions. Booking partial profits on rallies and employing tight trailing stop-losses is recommended. Fresh long positions can be considered only if Nifty sustains above the 25250 mark.Overall, while sentiment remains cautiously bullish, traders should keep a close eye on key technical levels and evolving global cues.

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