Indian stock market indices, the Nifty 50 and the Sensex, are anticipated to continue their decline on July 25th, opening lower due to mixed signals from global markets.

Market Performance on July 24, 2025

On July 24, 2025, the domestic equity market closed lower, with the Nifty 50 ending below the 25,100 level. The Sensex fell by 542.47 points, or 0.66%, to close at 82,184.17, while the Nifty 50 settled 157.80 points, or 0.63%, lower at 25,062.10. Foreign portfolio investors (FIIs) remained net sellers for the fourth consecutive day. Domestic institutional investors (DIIs) acquired stocks worth ₹2,692.4 crore.

Global Market Cues

• Mixed Global Trends: European markets closed mostly higher, reflecting steady investor confidence. The FTSE 100 was up 0.93%, and the DAX gained 0.44%. However, the CAC 40 dipped slightly by 0.16%, and U.S. futures showed mixed signals, suggesting limited support for Indian equities from global trends.
• US Economic Data: Initial jobless claims in the United States dropped by 4,000 to 217,000 for the week ended July 20, defying expectations of an increase. The S&P Global US Composite PMI climbed to 54.6 in July, indicating the strongest expansion so far in 2025.
• Wall Street Performance: The S&P 500 and the Nasdaq Composite extended their record-setting rally. The S&P 500 edged up 0.07% to a fresh closing high of 6,363.35, and the Nasdaq gained 0.18% to end at 21,057.96. The Dow Jones Industrial Average underperformed, falling 316.38 points, or 0.7%, to close at 44,693.91.
• Asian Markets: Asia-Pacific markets traded mostly lower on Thursday. The Nikkei slipped 0.55%, and the broader Topix index declined 0.73%. The ASX 200 fell 0.51%, while Kospi was up 0.14%.

Factors Influencing Market Sentiment

• Weak Domestic Sentiment: Indian markets may open cautiously as both Nifty 50 and Sensex closed lower. Gift Nifty's decline of 0.82% signals a subdued start for the next session.
• FII Outflows: Persistent foreign institutional investor (FII) outflows continue to weigh on market sentiment, although domestic institutional investor (DII) inflows provide some cushion. On July 23, FIIs sold ₹4,209 crore worth of shares.
• Key Triggers: Market participants are closely watching U.S. tech earnings and crude price movements, which may influence near-term direction.
• Q1 Earnings: The market will react to Q1 earnings from key companies.

Nifty 50 and Sensex Technical Outlook

• Sensex: The Sensex formed a bearish candle on daily charts, indicating a negative outlook. A fresh selloff is possible if the 82,000 level is breached, potentially leading to a retest of 81,700 - 81,500 levels. Conversely, if the index moves above 83,200, a technical bounce back to 82,800 could occur.
• Nifty 50: The Nifty 50 formed a Bearish Engulfing candlestick pattern. Immediate support for the Nifty is seen at 24,882. Unless 25,255 is decisively taken out, traders should maintain a cautious stance.
• Nifty OI Data: The highest Call Open Interest (OI) for Nifty 50 is at the 25,100 strike, followed by 25,200, indicating potential resistance. The highest Put OI is placed at 25,000, followed by 24,900, highlighting strong support zones. The 25,000 – 25,200 range will be crucial for Nifty's near-term directional move.

Trading Strategy

Given the current market conditions, a stock-specific approach is recommended, focusing on companies with strong technical charts. Traders should stay cautious and look for confirmation signals before taking directional trades.