Trade Setup for June 18: Nifty Struggles Below 25,000, Awaits Global Cues and Expiry Impact
Nifty hit resistance at 25,000, fell to 24,853 amid mixed sector trends; investors await global cues and Fed policy for next market direction.
image for illustrative purpose
The Nifty index faced strong resistance near the 25,000 mark on Tuesday, slipping to close at 24,853, down 93 points. After opening higher by 31 points, selling pressure dominated the session, pushing the benchmark to its day’s low.
Market Movers
Tech Mahindra, Infosys, and Asian Paints bucked the negative trend as top gainers. Meanwhile, Adani Enterprises, Eternal, and Dr. Reddy's Laboratories suffered notable losses. Midcap and smallcap indices underperformed, with the Nifty Midcap 100 down 0.66% and Nifty Smallcap 100 slipping 0.69%, reflecting weak market breadth.
Sector Performance
The market was mostly red, except for the Nifty IT index, which closed positive. Pharma, Healthcare, Metal, and Consumer Durables sectors were among the worst hit. The Nifty Pharma Index dropped nearly 2%, extending losses amid US tariff concerns on pharmaceutical imports.
Defence stocks surged up to 5%, driven by the ongoing Israel-Iran conflict. Mazagon Dock rose 4% on strong buying interest. Hindustan Zinc was the top midcap loser, down 5% after announcing a ₹12,000 crore capex plan to double production capacity.
Notable Trades
Shares of Vishal Mega Mart rebounded 4% after earlier losses, boosted by a massive block trade worth nearly ₹11,000 crore involving 20% of the company’s equity.
Market Outlook
The Nifty faced stiff resistance at 25,000 and corrected to a support zone near 24,850. Rupak De from LKP Securities noted, “With mixed technical signals and investors awaiting the Federal Reserve’s policy decision, expect range-bound trading. A break below 24,850 could deepen bearish sentiment, while 25,000 remains a strong resistance.”
Nandish Shah of HDFC Securities added, “Nifty failed to cross the critical 25,000 level and ended on a weak note. Technically, it is still consolidating. Watch for 24,700 as a key support level.”
Stocks to Watch Ahead of Wednesday’s Session:
Vedanta plans to divest up to ₹7,500 crore worth of Hindustan Zinc shares via block deals.
RailTel receives a letter of intent from Zoram Electronics Development Corporation for a ₹43.99 crore project.
Punjab National Bank completes sale of its 20.90% stake in associate ‘Mis India SME Asset Reconstruction Company’ for ₹34 crore.
Electrosteel Castings to shut down its MBF production facility at Khardah Works Unit from June 18 for 10-12 days of maintenance.
Investors remain cautious as global developments and expiry-related changes loom, shaping the market’s near-term direction.
