Nifty Struggles Below 25,100 Ahead Of HCL Tech Earnings, Inflation Data

Indian equity markets opened weak on Monday, tracking mixed global cues as continued tariff announcements from US President Donald Trump kept investor optimism subdued. Traders will be watching for cues from India’s inflation data due today, earnings fineprint from major companies including HCL Tech, and a potential trade deal with the US. 

At 09:40 a.m. IST, the Nifty 50 traded 95 points lower at 25,054, while the Sensex was down 340 points at 82,160. Broader markets traded mildly in the green. 

The retail sentiment on Stocktwits for Nifty moved from ‘neutral’ to ‘bearish’ on Monday. 

Sectorally, it’s a mixed bag: PSU banks, real estate, and consumer durables witnessed some buying, while IT and pharma remained under pressure. Tech stocks traded lower ahead of HCL Tech’s first-quarter (Q1) earnings today. 

Avenue Supermarts (DMart) shares fell over 2% as its Q1 earnings disappointed the street, with margins slipping for the fifth consecutive quarter.

VIP Industries fell 4% as its promoters sold a 32% stake to a new group of buyers, triggering an open offer for 26%.

Wockhardt fell 1% after the company decided to withdraw from the generics drug business in the US. 

BEML gained 1% ahead of its board meeting on July 21 to discuss a potential stock split. And NCC shares rose 2% after securing a ₹2,269 crore MMRDA contract. 

Watch out for Ola Electric Mobility, Tata Technologies, Tejas Networks, Nelco, Rallis India, among others, as they report quarterly earnings today. 

From a technical standpoint, SEBI-registered analysts on Stocktwits shared the trade setup. 

Ashish Kyal noted that if the Nifty breaks below 25,090, it will continue the downward trend towards 25,020-24,980 levels. For any reversal in sentiment, an hourly close above 25,270 is required. The index is likely to trade between 25,020 and 25,270, and a breakout on either side of this band can show a more positional trend. Kyal highlighted that the opening hour of trade will be crucial to determining the market’s direction.

Prabhat Mittal pegged Nifty support at 25,071 and resistance at 25,320. For the Bank Nifty, he sees support at 56,300 and resistance at 57,000.

Harika Enjamuri added that after a sharp sell-off from the 25,650–25,700 zone, Nifty is consolidating between 25,125–25,180 with Relative Strength Index (RSI) near 30 on the 15-minute chart, signaling oversold conditions but lacking strength for a reversal. She identified immediate resistance at 25,220 and 25,260, while a breakdown below 25,125 could drag the index toward 25,000.

Anupam Bajpai cautioned that there is a possibility of a bearish crossover forming between the 5-day and 20-day moving averages, which would further confirm the weakening trend. If the decline continues, Nifty may move towards the next important support level near 25,000. At the same time, the 50-day moving average could act as a major support, and traders should watch this level closely. The earlier support level of 25,265 will now act as a resistance, as per the technical rule that support and resistance levels often interchange once they are broken. Overall, unless Nifty moves back above 25,265 and sustains there, the short-term trend looks weak, and traders should be alert, he added.

Globally, Asian markets traded mixed after US President Donald Trump imposed fresh tariffs on Mexico and the EU. And crude oil prices rose marginally in early trading on Monday as investors remained concerned about potential further sanctions on Russia, which could tighten global supplies.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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