Trade Setup for July 17: Nifty eyes breakout above 25,250 ahead of weekly expiry
Nifty holds above 25,200, eyes breakout above 25,250. Experts predict next resistance at 25,550 amid strong banking support and positive short-term trend.
As the weekly expiry approaches, the Nifty index is gearing up to break past the crucial 25,250 mark, buoyed by strength in banking stocks and a positive short-term trend. Despite a weak start on July 16, the index found support near 25,121 and rebounded smartly in the second half of the session to close at 25,212—up 16 points.
M&M, Wipro, and Tech Mahindra led the day's gains, while Shriram Finance, Eicher Motors, and Sun Pharma dragged. Broader indices saw a pause, with both the Nifty Midcap 100 and Smallcap 100 ending flat after recent sharp gains.
Sectorally, PSU Banks, IT, and Media posted gains. The Nifty PSU Bank index jumped 1.8% on speculation of new financial sector reforms, with SBI in focus following reports of a ₹25,000 crore QIP launch at a slight market discount.
Wipro and Tech Mahindra advanced 2% each ahead of their Q1 earnings, while Tech Mahindra's post-market result revealed a 1.4% decline in constant currency revenue.
Global markets await key data on Thursday, including Eurozone CPI, UK job data, and US retail and jobless claims. Back home, Q1 earnings from Axis Bank, Jio Financial, Wipro, HDFC AMC, and Indian Hotels will influence sentiment.
Analysts maintain a bullish bias. Nagaraj Shetti of HDFC Securities noted that a move above 25,250 may drive the index toward 25,550, with immediate support at 25,000. Rupak De of LKP Securities highlighted resistance at 25,260 but believes staying above the 50-DMA near 25,000 supports a "buy on dips" approach. Nandish Shah added that if 25,000 holds, bulls are likely to retain control, with resistance seen at 25,331.
All eyes are now on whether the Nifty can breach the 25,250 level on Thursday to fuel the next leg of the rally.
