Nifty & Bank Nifty Directional Signal – 04 July 2025
By CapitalKeeper | Nifty & Bank Nifty | Indian Equities | Market Moves That Matter
CapitalKeeper Market Pulse – 04July 2025
Sector Sentiment Mixed, Nifty Eyes Breakout Above 25,662
Market Overview:
Today’s price action in Indian equities showed strength in large-cap indices, especially Nifty and Bank Nifty, despite global uncertainty around Trump’s tariff news. Most sectoral indices closed with a mildly positive bias, and technical signals point toward bullish continuation—only if key resistance zones are cleared.
Yesterday Market Stats:
| Index | Weekly Open | Today’s Close | Trend |
|---|---|---|---|
| Sensex | 84,027.33 | 83,239.47 | Weak close |
| Nifty | 25,661.65 | 25,405.30 | 🔄 Critical Zone |
| Bank Nifty | 57,529.95 | 56,791.95 | 🔄 Mildly Positive |
| PSU Banks | 7,053.55 | 7,129.90 | ✅ Buy-on-Dips |
| Pharma | 22,036.25 | 22,204.25 | ✅ Positive Bias |
| Metals | 9,604.20 | 9,623.45 | ✅ Strength Holds |
| I.T. | 38,945.85 | 38,854.30 | ⚖️ Mixed Sentiment |
| Auto | 24,074.80 | 24,004.95 | ⚖️ Mixed Zone |
| FMCG | 55,203.50 | 54,515.75 | ⚠️ Mild Recovery |
| Midcaps 100 | 59,665.90 | 59,683.25 | ✅ Accumulate on Dips |
| Energy | 36,672.15 | 36,362.80 | 🛑 Avoid Aggressive Buys |
| Pvt. Banks | 28,546.05 | 27,977.45 | ⚖️ Mixed, Weaker than PSU |
| Financial Services | 27,364.25 | 26,734.90 | ⚖️ Mixed, SL @26,000 |
| Smallcaps 100 | 19,057.55 | 19,027.05 | ⚖️ Range-bound, SL @17,400 |
| PSE | 10,112.35 | 10,048.35 | ⚖️ Mixed, SL @9,500 |
📌 Nifty Directional Insight:
- Current Spot: 25,424.30
- Breakout Level: 25,662
- Target (if breakout holds): 25,770 → 25,800 → 25,950+
- Stoploss Trigger: Any major tariff news from Trump, as it may drive sudden volatility
🔔 Above 25,662, market may show strong momentum going into next week.
🔻 Caution warranted only if tariff tensions escalate over the weekend.
🏦 Bank Nifty Overview:
- Current Now: 56,895.95
- Bias: Stable to Positive
- Support Zone: 56,400 / 56,100
- Resistance Zone: 57,300 / 57,600
- Highlight: PSU Banks continue to outperform private banks; avoid shorts on dips
🧮 FII Data Check:
- FII Long Positions: 29.27%
- FII Short Positions: 70.73%
⚠️ Heavily skewed toward short positions, suggesting any upmove could lead to short covering if resistance levels are breached.
💡 Key Takeaways:
- Nifty has closed just below a critical breakout level (25,662).
- Sectors like PSU Banks, Pharma, and Metals remain strong and supportive.
- Volatility may increase next week with Trump tariff-related developments.
- Traders should buy on dips in strong sectors but avoid aggressive buying in Energy and Smallcaps unless key support holds.
Fin Nifty Key Technical Levels:
- 📌 Current Price (approx): 26,813 (based on Bank Nifty trend correlation)
- 📉 Supports:
26,700 / 26,850 / 26,930 / 27,000 - 📈 Resistances:
27,240 / 27,375 / 27,520 / 27,660
⚠️ Strategy Insight:
- Cautious below 26,930
- Strength only above 27,240, where buyers may gain confidence toward 27,520+
🏦 Sector Signals Driving Fin Nifty:
✅ Positive Drivers:
- PSU Banks: Leading with strength—look at SBI, Canara Bank, and PNB
- Selective NBFCs: Bajaj Finance, M&M Financial showing early buying signals
- Insurance/AMC Stocks: Mild accumulation in SBI Life, Nippon AMC
⚠️ Watch Zones:
- Private Banks: Range-bound; no aggressive moves expected unless Bank Nifty breaks out
- HFCs & Broking: Limited momentum seen in LIC Housing, ICICI Securities
📢 Final Note:
This analysis is purely for educational and study purposes.
Please consult your registered financial advisor before taking any trades.
Keep strict stop-losses and book profits systematically.
Market trends are dynamic always trade with discipline.
⚠️ Risk Management Reminder:
🚫 This blog is for educational analysis only.
✅ Please consult your SEBI-registered financial advisor before trading.
🔐 Always use proper risk-reward and trailing stoplosses
💡 Booking profits quickly is key during mixed market sentiment
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