Closing bell: Sensex ends 176 pts lower, Nifty at 25,476; realty, metal, oil stocks weigh

The Indian equity market closed lower on Wednesday in a range-bound session, extending its ongoing consolidation phase as investors stayed cautious in the absence of any strong domestic or global trigger. The sentiment remained subdued amid reports that U.S. President Donald Trump may announce fresh tariff rates on seven countries on Thursday, keeping trade-related concerns alive. With geopolitical uncertainty weighing on risk appetite, investor focus has now shifted to the Q1 earnings season, beginning with IT major TCS, which is set to announce its June quarter results tomorrow.

The BSE Sensex ended day’s trade at 83,536.08, down 176.43 points or 0.21%, and NSE Nifty50 settled at 25,476.10, down 46.4 points or 0.18%. The broader markets witnessed mixed trend, with the Nifty MidCap 100 sliding 0.13%, while the Nifty SmallCap index climbed 0.59%.

“While the tariff-related concerns linger, the focus now shifts to the earnings season, with IT major TCS, scheduled to announce its results on Thursday, July 10. Additionally, the weekly expiry could add to the choppiness. Amid all this, we maintain our bullish stance and recommend continuing with a “buy on dips” strategy, with a strong emphasis on stock selection," said Ajit Mishra, SVP-research, Religare Broking.

On the sectoral front, Nifty realty, metal and oil & gas were among the top losers, falling in the range of 1.5% to 1.25%. On the other hand, Nifty energy, IT, media, PSU bank, and healthcare indices ended in positive terrain.

On the BSE Sensex pack, 17 out of 30 stocks settled in negative terrain, led by HCL Tech , Tata Steel , Tech Mahindra , Reliance Industries , and Bharat Electronics , sliding up to 2%. On the flip side, Bajaj Finance, Hindustan Unilever , Ultratech Cement , Mahindra and Mahindra , and Power Grid were the top gainers, rising up to 1.4%.

Among individual stocks, shares of Vedanta and its subsidiary Hindustan Zinc plunged by as much as 8% in intraday trade on Wednesday, after a report by short-seller Viceroy Research raised red flags about their parent company Vedanta Resources Ltd (VRL).

"Indian key indices remained largely range-bound, while domestic consumption themes continued to anchor investor sentiment,” said Vinod Nair, head of research, Geojit Investments.

He said that early commentary from FMCG and discretionary players suggests green shoots of recovery, supported by easing inflation, a healthy monsoon, and rising rural demand. “Despite global trade tensions and commodity tariffs, investor focus is increasingly shifting toward domestic earnings and structural growth drivers, including a likely sequential recovery in urban demand and a pickup in infrastructure-led spending."

Nifty faces resistance around 25,500–25,550 level

Today, Nifty witnessed range-bound movement after a strong upmove, facing stiff resistance around 25,500–25,550, said Rupak De, senior technical analyst at LKP Securities. On the hourly chart, the index has slipped below the 50-hour simple moving average, while the RSI has also moved below the 50-mark, indicating weakening momentum.

“However, it continues to hold above the breakout zone of 25,200–25,250, which may act as immediate support in the short term. As long as this level is sustained, the broader trend remains positive. A sustained move above 25,550 could trigger fresh upside," he said.

For the bulls, the breakout zones for Nifty and Sensex are 25,550 and 83,800, respectively, said Shrikant Chouhan, head of equity research, Kotak Securities. “Above these levels, the market could rally to 25,650-25,725/ 84,000-84,400. On the flip side, a dismissal of 25,400/83,350 could accelerate selling pressure. Below these levels, the market may retest the levels of 25,300/83,000. Further downside could continue, potentially dragging the market to 25,200-25,175 / 83,000-82,900.”

The Bank Nifty is expected to extend consolidation in the range 56,500-57,600 in the coming sessions, said Bajaj Broking Research. “Only a move above 57,600 will open further upside towards 58,200-58,500 levels in the coming weeks. Key support is placed at 56,000–55,500 region, representing a confluence of key technical indicators, including the 50-day EMA and the 61.8% Fibonacci retracement of the recent rally (55,149-57,614).”

The broader trend remains positive, and any dips should be viewed as buying opportunities, the brokerage said in a note.

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