Sensex, Nifty end flat after range-bound trade; PSU banks shine, metals see profit booking

Equity benchmarks closed marginally higher on 16 July 2025 after a range-bound session, supported by late buying in select heavyweights. The BSE Sensex added 63.57 points to settle at 82,634.48, while the NSE Nifty 50 edged up 16.25 points to close at 25,212.05.

Both indices stayed in a narrow band through most of the day, with modest gains seen in the second half. The Sensex held above the 82,600 mark, while the Nifty remained resilient near the 25,200 level.

Shrikant Chouhan, Head of Equity Research, Kotak Securities, said, "Today, the benchmark indices experienced narrow-range activity, with the Nifty ending 16 points higher and the Sensex gaining 64 points. Among sectors, the PSU Bank index outperformed, rallying over 1.70 percent, while selective profit booking was observed in metal and defence stocks. Technically, a small candle on the daily charts and range-bound intraday activity indicate indecisiveness between the bulls and bears."

Amid mixed global cues, Indian equities opened the session on a cautious note. According to Ashika Institutional Equities, strength was visible in sectors such as PSU Banks, Media, IT, Realty, and FMCG, while metals, healthcare, and pharma stocks underperformed.

“On the derivatives front, notable open interest build-up was seen in ICICI Lombard (ICICIGI), Patanjali Foods, Amber Enterprises, Biocon, and Torrent Power. For the Nifty index, the highest open interest on the call side is now positioned at the 25,300 and 25,500 strike prices, suggesting strong resistance at those levels. On the put side, the 25,200 and 25,100 strikes hold the most open interest, indicating firm immediate support. The Put-Call Ratio (PCR) currently stands at 0.84, signalling a mildly cautious undertone in the market,” the report noted.

"We believe that 25,100/82,300 will remain a key support zone for traders. As long as the market trades above this level, the bullish sentiment is likely to continue. On the higher side, the market could bounce back to the 20-day SMA (Simple Moving Average) or 25,300/83,000. Further upside may also push the market up to 25,450/83,600," said Chouhan.

"Conversely, below 25,100/82,300, the sentiment could change. If the market slips below this level, it could decline toward the 50-day SMA or the 25,000–24,930/82,000–81,800 zone," added Chouhan.