With Nifty breaking below the previous low and all key short-term averages, the outlook has turned bearish. The index now targets 24,500–24,450 on the downside, while any bounce toward 24,900–25,000 is likely to face selling pressure. Resistance is now established at 25,000–25,100, while support lies around 24,500–24,450.
Buy: ETERNAL LTD — Current Price: ₹310.55
- Why IT’s recommended: Eternal Ltd is trading at lifetime high levels, signaling strong trend continuation and buyer dominance. The daily RSI is at 76.80 and MACD at 12.78, both highlighting robust bullish momentum. This setup suggests the rally may continue toward the ₹350–352 zone in the near term.
- Key metrics: Breakout zone: Trading at lifetime high on strong price action
- Pattern: Momentum continuation setup at new highs
- MACD: Positive at 12.78, showing rising strength
- RSI: Daily RSI at 76.80, indicating strong momentum
- Technical analysis: With the stock at all-time highs and momentum building, the price action supports a continued rally toward the ₹350–352 mark.
- Risk factors: A close below ₹288 will invalidate the current bullish setup and may signal short-term weakness. A disciplined stop-loss at ₹288 is recommended
- Buy at: ₹310.55
- Target price: ₹350–352
- Stop loss: ₹288.00
Also Read: Zomato surges past DMart in market value on Blinkit-fueled share rally
Buy: FORTIS HEALTHCARE LTD — Current Price: ₹845.55
- Why it’s recommended: Fortis Healthcare has shown strong momentum with a daily RSI of 69 and MACD at 19. The stock earlier gave a rectangle breakout, whose target is still active, and on lower timeframes, it has confirmed a bullish flag breakout, pointing to further upside.
- Key metrics: Breakout zone: Rectangle breakout on daily chart, flag breakout on lower timeframe
- Pattern: Continuation breakout across timeframes
- MACD: Positive at 19, showing strong momentum
- RSI: Daily RSI at 69, indicating solid momentum
- Technical analysis: With multiple breakout confirmations and rising momentum, the stock is likely to move toward the ₹870 level in the near term.
- Risk factors: A close below ₹832 will invalidate the current bullish setup and may signal short-term weakness. A disciplined stop-loss at ₹832 is recommended
- Buy at: ₹845.55
- Target price: ₹870
- Stop loss: ₹832.00
- Why it’s recommended: Syngene Inetrnational is showing bullish momentum with the daily RSI at 62 and MACD at 8.71. The stock is trending higher after consolidation, suggesting renewed buying interest and room for upside toward ₹720.
- Key metrics: Breakout zone: Emerging from consolidation with positive structure
- Pattern: Bullish continuation setup
- MACD: Positive at 8.71, showing rising strength
- RSI: Daily RSI at 62, indicating solid momentum
- Technical analysis: With price picking up momentum and indicators strengthening, the stock shows potential to rally toward the ₹720 mark in the near term
- Risk factors: A close below ₹660 will invalidate the current bullish setup and may signal short-term weakness. A disciplined stop-loss at ₹660 is recommended
- Buy at: ₹681.10
- Target price: ₹720
- Stop loss: ₹660.00
Also Read: Biocon launches QIP to raise ₹4,500 crore
Market Wrap
On Friday, 25 July 2025, the Indian stock market closed on a weak note, witnessing broad-based selling across major indices. Investors remained cautious amid weak global cues, valuation concerns, and ongoing foreign institutional outflows. The session extended the recent corrective phase, with all benchmark indices finishing deep in the red.
The Nifty 50 declined sharply by 225.10 points or 0.90%, closing at 24,837.00. The BSE Sensex also dropped by 721.08 points or 0.88%, ending at 81,463.09. The Bank Nifty mirrored the broader trend, falling by nearly 0.9% to settle around 56,566 after slipping below key support zones during intraday trade.
Sector-wise, the losses were widespread, with oil & gas, metals, PSU banks, and auto sectors leading the fall. The energy and auto indices each lost over 2%, while metals and PSU banks were down by around 1.7%. Other sectors like IT, FMCG, private banks, and realty also closed lower, each shedding between 1% and 1.4%. The only pocket of resilience came from the pharma sector, which gained around 0.5%, supported by defensive buying amid heightened volatility.
On the stock front, Cipla stood out as a top gainer, rallying nearly 3% after strong quarterly earnings and positive guidance. Dr. Reddy’s, SBI Life Insurance, Apollo Hospitals, and Mphasis also saw notable gains, buoyed by buying interest in defensive and healthcare-related stocks.
Conversely, Bajaj Finance led the list of laggards, falling by nearly 6% amid investor concerns over valuations and asset quality pressures, despite reporting solid earnings. Shriram Finance, IndusInd Bank, Tech Mahindra, and Maruti Suzuki also ended the day with losses in the range of 2.4% to 2.8%. Chennai Petroleum was among the worst performers, plunging nearly 9% in a sharp reversal.
The broader market sentiment remained fragile, with midcap and smallcap indices also coming under pressure. The Nifty Midcap 100 declined by around 1.6%, while the Smallcap index fell by more than 2%, as profit booking intensified in high-beta names. The rotation away from cyclical and export-oriented stocks toward defensives continued, reflecting a cautious stance among investors.
Overall, Friday’s session reinforced the short-term corrective phase in the market. With benchmark indices breaking below key support levels, the outlook remains cautious. However, the positive performance in the pharma space suggests selective stock-specific opportunities may still exist even in a weak market environment.
Nifty Technical Analysis
From a technical standpoint, the index is now trading below both the 40-day EMA (25,041) and the 20-day SMA (25,259), reflecting a shift in the short-term trend toward weakness. On the hourly chart, Nifty is hovering near the 20-hour SMA (25,037) and 40-hour EMA (25,035), but with the price closing well below these levels, short-term momentum appears firmly negative.
Momentum indicators have deteriorated considerably. The daily RSI has declined to 40.65, moving closer to the oversold territory, indicating weakening underlying strength. The hourly RSI stands at 27, clearly in the oversold zone, suggesting potential for minor intraday bounces, though the broader trend remains under pressure. The MACD readings have turned negative, with the daily MACD at –19 and the hourly MACD falling to –44, confirming a bearish crossover and signaling continued downside momentum.
The broader chart pattern confirms the breakdown of the previous support level at 24,882, invalidating the earlier bullish setup and shifting the short-term structure to bearish. With the index failing to hold above key moving averages and lacking any reversal signal, the near-term downside target is seen around 24,500–24,450.
In the derivatives space, the options data reflects a decisively bearish bias. Total Call open interest stands at 2.43 crore, significantly higher than the Put OI of 1.64 crore, with a net difference of –78.55 lakh, clearly indicating call writing dominance. Further, the change in OI reinforces this stance, with Call OI increasing by 38.95 lakh and Put OI decreasing by 6.79 lakh, leading to a net change of –45.74 lakh. This aggressive call buildup and put unwinding suggest a buildup of bearish sentiment.
The Put-Call Ratio (PCR) has deteriorated and remains below 1, affirming the negative bias. Strike-wise, maximum Call OI and change are concentrated at 25,700, while aggressive additions are also visible at 26,500, pointing to elevated resistance levels. On the Put side, maximum OI is at 25,600, and the highest additions are at 25,620, but the reduction in overall Put OI reflects diminishing bullish conviction.
India VIX remained relatively stable, but the breakdown in price without a corresponding spike in volatility may indicate complacency among participants, keeping the risk of sharp moves alive should selling intensify.
With Nifty decisively breaking below the previous swing low and all key short-term averages, the outlook has turned decisively bearish. The index now targets 24,500–24,450 on the downside, while any bounce toward 24,900–25,000 is likely to face selling pressure. Resistance is now firmly established at 25,000–25,100, while support lies around 24,500–24,450. Momentum indicators and derivatives data confirm bearish control. Until the index reclaims 25,100–25,324 decisively, the short-term bias will remain negative.
Traders are advised to maintain a bearish stance, use rallies to initiate fresh shorts, and keep tight stop-losses above 25,100 to protect against potential whipsaws.
Ankush Bajaj is a Sebi-registered research analyst. His registration number is INH000010441.
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