Stock Market Watches Tug of War among Bulls and Bears

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Metals Shine Amid Caution on Stock Market Street

By S JHA

MUMBAI, July 2, 2025 – The Indian equity markets continued their losing streak for a third straight session on Tuesday, with the Nifty 50 closing down 0.35%, just above the 25,450 mark, as investors locked in profits after last week’s sharp rally.

According to a market note issued by Angel One to its clients, selling pressure persisted across key indices, with broad market breadth remaining weak—only 23 of the Nifty 50 and 206 of the Nifty 500 stocks managed to end in the green.

Metals Buck the Trend, Realty Lags

The metal sector emerged as a notable outperformer, with the Nifty Metal Index rallying 1.4%, supported by renewed broad-based buying. Angel One noted that the sector’s strong underlying chart structure suggests this positive momentum is likely to continue, potentially leading to further outperformance in the near term. In contrast, real estate stocks lagged, shedding 1.4%, underperforming the broader market.

Tata Steel and JSW Steel led the charge on the street with sharp jumps in their stocks. The scrip of Tata Steel closed at its nine months high. IT stocks gave all gains after the first hour of the trade amid heavy profit booking in their counters. Infosys had led the IT counters in the morning with sharp gains.

Global Cues and Technical Picture

Asian markets traded mixed, while European bourses opened on a firm note, indicating a cautiously optimistic investor mood overseas.

On the technical front, the Nifty slipped below its 4-day low, but crucially held above the 10-day Exponential Moving Average (EMA). Analysts describe this as a tug-of-war between bulls and bears, particularly after last week’s sharp uptrend. However, a trendline breakdown on the hourly chart adds to near-term caution.

F&O Action: Cautious Optimism, but Fresh Shorts Rise

In the Futures & Options (F&O) segment, activity was mixed:

78 stocks saw long build-up,
19 stocks experienced short-covering,
24 stocks saw long unwinding, and
102 stocks registered fresh short positions, indicating rising caution among traders.

Key Levels to Watch per Angel One

On the downside:

25,300 is expected to act as a strong support, aligning with the 78.60% Fibonacci retracement level.
Further support lies in the 25,250–25,200 breakout zone.

On the upside:

25,600 is likely to act as an intermediate resistance,
Followed by a bearish gap zone in the 25,670–25,740 range.

Outlook

While short-term caution persists due to technical breakdowns and weak breadth, sector-specific resilience—particularly in metals—may offer opportunities for selective participation. Market participants are advised to monitor key support and resistance zones closely, especially as global cues remain mixed and domestic traders remain risk-averse amid high valuations.

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

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