Trade Setup for July 8: 25,300 remains key for the Nifty as focus shifts to Trump announcements

Monday turned out to be a muted session for the Nifty, with the index consolidating within a narrow 82-point range throughout the day.

After opening on a slightly negative note, the market struggled to stage any sustained recovery, remaining largely rangebound.

The Indian equity market stayed in a consolidation phase and ended the session almost flat. The Nifty added just 10 points to close at 25,461.

The index managed to hold above the 25,400 mark, with Reliance Industries emerging as the top contributor.

Leading the charge among the top performers on the Nifty were Hindustan Unilever, Tata consumer and Nestle, showcasing resilience. Conversely, Bharat Electronics, Tech Mahindra, and ONGC bore the brunt of selling pressure, concluding the session as major losers.

Both the Nifty Midcap and Smallcap Indices witnessed profit booking to end the day with minor losses. Nifty midcap 100 Index fell by 0.27% while Nifty Smallcap 100 Index fell by 0.44%. Market breadth turned negative, with declining stocks outpacing advancing ones, as indicated by a BSE advance-decline ratio of 0.72.

Amongst the sectoral Indices, Nifty FMCG, Oil & Gas and Realty were major gainers while Nifty Media, IT and Metal were major losers.

Markets are jittery as the July 9 tariff deadline approaches, with investor anxiety mounting over potential trade disruptions. While round-the-clock negotiations between Indian and American officials had raised hopes of sealing a bilateral trade deal, uncertainty persists about when a comprehensive agreement will truly materialise.

According to Nandish Shah of HDFC Securities, the short-term trend of the Nifty remains positive as it is placed above its important moving averages. "Immediate support for the Nifty is now seen at 25,331, while resistance would continue to be in the range of 25,600-25,670, as the market awaits clarity on the evolving global trade landscape."

LKP Securities' Rupak De said the Nifty remained extremely flat as market participants are closely watching for any updates on the US-India deal. An indecisive candle has formed on the daily chart, indicating continued lackluster sentiment in the absence of a clear outcome on Trump’s tariffs.

"On the lower end, support is placed at 25,400. A fall below this level might trigger short-term selling pressure. Below 25,400, additional support is seen at 25,250 and 25,100. On the higher end, resistance is placed at 25,500. A decisive move above this level could push the Nifty towards 25,800," De added.

Nagaraj Shetti of HDFC Securities said the short term trend of the Nifty is choppy, but the near term uptrend status remains intact. Any weakness from here could find support around 25,300 levels. The next overhead resistance is placed at 25,700.

Rajesh Bhosale of Angel One said the zone of 25,300–25,250 continues to act as a strong support area, aligned with recent breakout levels and the 20-day EMA. Considering the broader uptrend, any dip into this support zone is likely to attract buying interest. On the higher side, 25,500–25,600 remains an immediate resistance zone. A breakout beyond this range on intraday charts could lead to a fresh leg of the uptrend.

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