Stock Market: Nifty Key Support Holds with 25600 Break Eyed

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Angel One says underlying bullish trend intact despite mild selling pressure; eyes on breakout beyond 25,600

By S JHA

MUMBAI, July 10, 2025 — The Indian equity market ended on a subdued note Wednesday, with the Nifty 50 shedding 46 points amid mild selling pressure during the latter half of the session. Angel One, in a note to clients, indicated that while the near-term momentum has slowed, the broader trend remains firmly bullish.

The futures premium narrowed from 102 to 71 points, a sign of some caution creeping in. However, analysts at Angel One pointed out that the index continues to trade comfortably above its key 50-, 100-, and 200-day exponential moving averages (EMAs), with the Relative Strength Index (RSI) holding above 60 on both daily and weekly timeframes—suggesting resilience in the broader uptrend.

Sectoral Snapshot and Breadth

Market breadth was relatively narrow, with only 22 of the 50 Nifty stocks closing in the green. In contrast, the broader Nifty 500 index saw 262 advancing stocks, signaling selective buying outside the headline index.

“Sector-wise, FMCG stocks led the gainers with a 0.80% rise, while Realty and Metal stocks dragged, slipping over 1.4% each amid profit booking and weak global cues,” added the brokerage firm.

Technical Outlook: Watch for Breakout Triggers

On the technical front, Angel One noted that the Nifty is currently undergoing a time-wise correction and has formed a defined trading range between 25,300 and 25,600.

“A meaningful directional move is likely only if this range is decisively breached,” the brokerage said. “Given the primary uptrend, a breakout above 25,600 could reignite bullish momentum and set the stage for a rally toward 26,000, with the all-time high near 26,300 within reach,’ it added.

Conversely, a breakdown below 25,300—also near the 20-day EMA—could open the door for further downside toward the 25,200–25,100 zone.

Market Outlook

Despite short-term consolidation, sentiment remains broadly positive, supported by strong technical structure and selective sectoral rotation. However, Angel One advised traders to stay cautious and await a breakout confirmation before taking aggressive positions.

As markets hover within this narrow range, all eyes are on upcoming global macro data and earnings reports that could provide the next catalyst for a directional move.

The Indian equity markets also remain edgy as India-US bilateral trade deal is yet to take shape. US President Donald Trump is releasing letters to nations with tariff conditions. With August 1 deadline for the reciprocal tariffs, the equity markets also stare at range-bound trades in near future, said analysts.

(Disclaimer: This article makes no recommendation for any kind of trades in the stock market)

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