Stock Market: Trade Tight as Indices Inch into Congestion Zone

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Solar Stocks Gain with Risk-on as Investors Rediscover Sector Interest

By S JHA

MUMBAI, July 17, 2025—The Indian equity benchmarks ended on a steady note on Wednesday, with the Nifty50 closing marginally higher, supported by buying at lower levels and sectoral outperformance in auto, pharma, and PSU banks. The index concluded the session above the 24,200 mark, registering a modest gain of 0.06%.

According to a client note from Angel One, the broader market sentiment remains resilient despite global cues staying largely muted. Both Asian and European markets offered little directional bias, yet domestic indices showed firmness, particularly in the second half of the session.

Technical Snapshot

On the technical front, Nifty formed a higher high and higher low pattern—an indicator of underlying strength—despite futures registering a slight dip. The index continues to trade just below its 10-day and 20-day Exponential Moving Averages (EMAs), with the 20-day EMA around 25,250 proving to be a persistent resistance point.

StockEdge, in its market update, noted that the Nifty remains range-bound, oscillating between the 25,000–25,350 zone. “A sustained breakout above 25,350 could lead to a retest of previous highs,” analysts at StockEdge noted. The daily stochastic oscillator has rebounded from oversold levels, hinting at a potential momentum shift.

The solar stocks are buzzing for past few days led by steep gains in Waaree Renewable, KPI Green and others. The Union Cabinet decision yesterday to further support renewable energy push through NTPC and NLC India is likely to bring investors’ interests in the market, said analysts.

PSU Banks emerged as the top sectoral gainers with a 1.78% jump, indicating renewed investor interest.
Auto stocks reversed early weakness, surging in the latter half to close at session highs. This momentum is likely to sustain, said Angel One.
Pharma and Healthcare sectors continue to show strong upside potential, with analysts flagging them as areas to watch for fresh opportunities.
Metals, on the other hand, came under pressure, shedding 0.57% amid weak global cues.

Key Movers

Top Gainers: Mahindra & Mahindra (M&M) and Wipro surged over 2% each, supported by strong volume and technical setups.
Notable Laggards: Shriram Finance and Eternal ended among the top losers in the Nifty50 universe, dragging on sentiment.

“The Midcap index is nearing a potential breakout zone, which could trigger a wave of buying,” said Angel One in its note to clients. Analysts advise close monitoring of midcap counters for momentum trades in the coming sessions.

The broader macro setup remains mixed:

FII flows stayed muted,
Dollar index edged slightly higher,
US markets traded weak overnight.

With consolidation underway, analysts see Nifty trading within a narrow band of 25,000–25,350 in the near term. While headline indices may remain range-bound, stock-specific opportunities are expected to dominate trading strategies. Sectors like Auto, Pharma, and PSU Banks remain in focus, while traders are advised to keep an eye on potential midcap breakouts.

Market tone remains constructive despite consolidation. A move above 25,350 could open the gates for a retest of record highs. Until then, the strategy is to trade selectively, with a focus on outperforming sectors and individual stocks showing strong technical signals.

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

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