Nifty Steady Above 25,500; Midcap, Smallcap Rally Stalls Awaiting Breakout Trigger

In a subdued trading session on July 1, benchmark Indian indices ended with marginal gains, while broader market momentum showed signs of exhaustion after a week-long rally. The Sensex closed 90.83 points higher at 83,697.29, up 0.11%, while the Nifty rose 24.75 points to settle at 25,541.80. Although large-cap indices managed to stay afloat, the BSE Midcap and Smallcap indices declined slightly, snapping a seven-day winning streak. Market breadth remained largely neutral with more than 150 stocks on the BSE touching their 52-week highs, highlighting strong stock-specific performance despite the lack of directional momentum at the index level.

Highlights

• Sensex rose by 90 points and Nifty gained 25 points in a rangebound session.

• Midcap and Smallcap indices ended marginally lower, halting their week-long gains.

• Over 150 BSE stocks hit 52-week highs, showing isolated bullish activity.

• Market participants displayed caution ahead of a decisive breakout.

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Sectoral Moves Mixed; PSU Banks and Consumer Durables Gain, Media Underperforms

Sectoral performance was mixed on Monday as some pockets showed strength while others faced profit-booking. The PSU Bank index emerged as a standout, gaining 0.7%, reflecting continued investor interest in state-run lenders. Consumer durables added 0.4% intraday, aided by selective buying in appliance majors. On the flip side, the media index fell 1.35%, while FMCG and power also ended in the red, down between 0.4–1.3%. Defensive and high-valuation segments appeared to be under pressure amid sectoral rotation. Key gainers on the Nifty included Apollo Hospitals, Bharat Electronics, Reliance Industries, SBI Life, and Asian Paints, while Axis Bank, Nestle, and Shriram Finance saw declines.

Highlights

• PSU Bank index rose 0.7%, while Consumer Durables added 0.4%.

• Media index was the worst performer, down 1.35% intraday.

• FMCG and Power sectors witnessed mild selling pressure.

• Apollo Hospitals, BEL, and Reliance were among the top Nifty gainers.

Stock-Specific Action Dominates; Sigachi Tanks, Gabriel India Surges on Restructuring

The session was notably stock-driven with several companies responding to specific developments. Sigachi Industries dropped 5% for the second consecutive day, as investor sentiment remained subdued following the fatal reactor blast at its Telangana facility. Conversely, Gabriel India surged 20% following the announcement of a business restructuring plan aimed at unlocking value. Kalpataru Projects gained 2% after securing a fresh order worth ₹989 crore, reinforcing confidence in its order book visibility. Dixon Technologies came under pressure after Morgan Stanley downgraded the stock, while Karur Vysya Bank rose 2% on positive quarterly growth in deposits and advances.

Highlights

• Sigachi Industries declined 5% after Telangana plant explosion.

• Gabriel India soared 20% following a restructuring announcement.

• Kalpataru Projects gained 2% after ₹989 crore order win.

• Dixon Technologies fell after a downgrade by Morgan Stanley.

Key Support at 25,300; Breakout Levels in Sight

From a technical standpoint, the Nifty remained locked in a narrow range throughout the day, reflecting indecision between bulls and bears. Technical analysts observed the formation of a small daily candlestick, indicating market hesitation. Nagaraj Shetti of HDFC Securities noted that the bullish higher-top-higher-bottom pattern remains intact on the daily charts. He suggested that any pullback to the support zone of 25,300–25,400 could serve as a base for a fresh rally. For bulls, a breakout above 25,700 would open up higher targets in the 26,000–26,200 range. However, a breach below 25,470 could intensify selling pressure, dragging the market toward 25,300 or lower.

Highlights

• Nifty formed an indecisive candlestick, reflecting market neutrality.

• Support seen at 25,300–25,400; upside trigger above 25,700.

• Higher-top-higher-bottom structure intact on daily charts.

• Technical experts advise monitoring breakout levels at 25,600–25,700.