Stock Market Today: Nifty Chart Reveals Waning Momentum

Spread love

Nifty: 25,000 remains key psychological support as volatility hits lowest since April 2024

By S JHA

MUMBAI, July 23, 2025 – The Indian equity markets ended Tuesday’s session yesterday on a subdued note after opening with promise. The Nifty 50 made a gap-up opening, but quickly faced strong resistance near the 20-day Exponential Moving Average (EMA) around 25,180, and subsequently declined, erasing intraday gains and trading range-bound for the remainder of the day.

The index closed marginally lower, down 0.12%, settling just above the 25,050 mark, failing to sustain the early momentum triggered by positive cues from Gift Nifty.

According to StockEdge, “Nifty 50 failed to maintain strength above the 20 EMA, with psychological support now visible around 25,000.” The Bank Nifty, which initially crossed the 57,000 mark, also succumbed to pressure and closed below 20 EMA support near 57,756.

Technical Snapshot: Resistance at 25,200–25,250, Key Support at 24,900

Angel One noted that only 18 stocks in the Nifty 50 ended in the green, reflecting broad market weakness. Open interest (OI) rose by nearly 1%, suggesting fresh short build-up in the derivatives market. The India VIX, a key measure of market volatility, closed at its lowest level since April 2024, indicating a calm but cautious undertone.

Chartists noted that the Nifty has retraced nearly 50% of its recent upmove from Monday’s low to Tuesday’s high, suggesting waning momentum. The 25,200–25,250 zone remains a critical resistance, while 24,900 — aligning with the 50-day EMA — is now seen as the immediate support level.

PSU Banks Lead the Decline; Digital Stocks Outperform

Sector-wise, the performance was mixed to negative, with PSU banks leading the underperformance, continuing their four-day losing streak. However, a few sectors stood out. The NIFTY India Digital Index gained 1.1%, becoming the top sectoral performer of the day.

Top Movers: Eternal Ltd. Surges, Shriram Finance Slips

Top Gainer: Eternal Ltd., up 10.3%, led the Nifty 50, riding strong buying interest.
Top Loser: Shriram Finance Ltd. declined by 2.4%, dragging down the financial segment.

Despite a mild start to the day, broader market participation remained weak, with less than 30% of Nifty stocks trading above the 10-day EMA and only 35% above the 20-day EMA.

Outlook: Crucial 100–150 Points Ahead

With sentiment cautious and market breadth weak, the next 100–150 points on the Nifty are likely to determine the near-term direction. Analysts advise watching 24,900 on the downside and 25,250 on the upside as immediate trend deciders.

As traders await stronger cues, the markets could remain volatile within this narrow range, testing investor patience and strategy.

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