Trade Setup for June 18: Nifty awaits global developments, expiry changes after failing to cross 25,000

After opening 31 points higher, the Nifty quickly turned negative and remained under pressure throughout the session. The index closed at the day's low, down 93 points, at 24,853.

Tech Mahindra, Infosys, and Asian Paints emerged as the top gainers, bucking the broader negative trend. On the other hand, Adani Enterprises, Eternal, and Dr. Reddy's Laboratories were among the major losers.

The midcap and smallcap indices underperformed the benchmark, keeping market breadth skewed towards declines. The Nifty Midcap 100 Index fell by 0.66%, while the Nifty Smallcap 100 Index slipped 0.69%.

Sectorally, it was a sea of red, with the lone exception of the Nifty IT index, which managed to close in positive territory. Among the worst-hit sectors were Pharma, Healthcare, Metal, and Consumer Durables.

Pharma stocks extended losses, falling in three of the last four sessions, following US President Donald Trump’s warning about potential tariffs on pharmaceutical imports. The Nifty Pharma Index dropped nearly 2%.

Defence stocks rallied up to 5% as the Israel-Iran conflict entered its fifth day. Mazagon Dock surged 4% on strong buying interest.

Hindustan Zinc was the top midcap loser, falling 5% after announcing a ₹12,000 crore capex plan aimed at doubling its production capacity of zinc, lead, and silver.

Shares of Vishal Mega Mart ended 4% higher, recovering sharply after being 14% down earlier in the session. A large block trade worth nearly ₹11,000 crore took place, with 93.58 crore shares, representing 20% of the company's outstanding equity, changing hands.

The Nifty faced resistance at around 25,000, leading to a correction to the support level of 24,850.

"With conflicting technical signals and investors awaiting the outcome of the Fed policy meeting, we expect rangebound movement in the immediate term. A decisive break below 24,850 could trigger further bearishness, while on the higher side, 25,000 is likely to remain a strong resistance," said Rupak De of LKP Securities.

According to Nandish Shah of HDFC Securities, the Nifty failed in its attempt to breach the crucial resistance level of 25,000, concluding the session on a weak note. Despite this intraday pressure, the Nifty technically remains in a consolidation phase positionally. Traders should keep a close eye on 24,700, which is likely to act as a key support level on the downside, he said.

Here are the stocks to watch ahead of Wednesday's trading session:

- Promoter Vedanta is planning to divest shares worth up to ₹7,500 crore in Hindustan Zinc through block deals.

- RailTel gets letter of intent (LoI) from Zoram Electronics Development Corporation for a project worth ₹43.99 crore.

- Punjab Bank (PNB) completes sale of its entire stake (20.90% equity) in associate company, 'Mis India SME Asset Reconstruction Company' for ₹34 crore.

- Electrosteel Castings: To shut down its MBF production facility at Khardah Works Unit and Main Plant for 10-12 days from June 18 for maintenance work.

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