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Below the Quote on Pre-market comment 21th July 2025 by Mandar Bhojane, Senior Technical & Derivative Analyst, Choice Broking

Indian benchmark indices are expected to open on a flat to negative note today, as indicated by the GIFT Nifty, which signals a marginal decline of around 35 points in the Nifty 50. Market sentiment continues to remain mildly indecisive, following a cautious close in the previous session.

The Nifty index witnessed a downward move in the first half of the previous session and remained sideways thereafter, forming a bearish candlestick that reflects underlying negative sentiment. Immediate support is placed at 24,917, with a stronger support zone in the 24,850–24,700 range. A breakdown below this zone could trigger increased selling pressure. On the upside, 25,000 is acting as immediate resistance, while a decisive breakout above 25,150–25,250 is essential to resume the bullish trend.

The Bank Nifty closed at 56,283, registering a weekly loss of 0.83%. The index showed rejection near 56,500, forming a bearish weekly candle that hints at either consolidation or a mild correction phase. Although the index remains above key Exponential Moving Averages (EMAs)—signaling a broader uptrend—a negative crossover in the RSI at 61.16 points toward weakening momentum. Resistance is placed at 56,500–57,000, while key support lies between 56,000–55,500. Traders are advised to follow a cautious “sell-on-rise” approach within the 55,500–57,000 range, backed by strict stop-loss strategies.

On the institutional front, Foreign Institutional Investors (FIIs) were net sellers for the second consecutive session on July 18, offloading equities worth Rs.3,694 crore, while Domestic Institutional Investors (DIIs) continued their ninth straight session of buying, with net purchases worth Rs.2,820 crore.

Considering the current environment of elevated volatility and mixed global cues, traders should maintain a cautious sell-on-rise strategy, especially when using leverage. Booking partial profits during rallies and maintaining tight trailing stop-losses is recommended to manage risk effectively. Fresh long positions should only be considered if the Nifty sustains above the 25,000 level. While the broader market undertone remains cautiously bullish, close attention must be paid to key technical levels and macro developments.

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