Navigating Tomorrow's Market: Your Essential Guide to Nifty, Global Cues, and Top Stock Picks for July 3, 2025

The Indian stock market closed Wednesday, July 2nd, on a cautious note, with benchmark indices dipping amidst mixed global signals and ongoing concerns surrounding U.S. trade policies. The Nifty 50 shed 0.35%, settling at 25,453.40, while the Bank Nifty saw a sharper decline of 0.80%, closing at 56,999.20. The realty sector also faced headwinds, though metals, pharmaceuticals, and auto industries managed to post gains. Broader market indices also edged slightly lower.

Your Thursday Trade Setup: What to Watch for on July 3rd

As we head into Thursday's trading, market sentiment appears fragile. According to Shrikant Chouhan, Head Equity Research at Kotak Securities, the Nifty 50 is likely to remain under pressure as long as it trades below the 25,500 mark. A breach of this level could see the index retest support at 25,300 and potentially 25,225. However, a decisive move above 25,500 could trigger a bounce, pushing the Nifty towards 25,600-25,670.

For the Bank Nifty, Bajaj Broking highlights a crucial structural support zone between 56,000 and 55,500. Traders should keep a close eye on these levels for potential reversals or further declines.

Global Markets: Awaiting Q1 Earnings Amid Tariff Tensions

Globally, markets are treading carefully, primarily due to mixed cues and the looming tariff deadline. Vinod Nair, Head of Research at Geojit Investments Limited, notes that investor focus is gradually shifting towards the highly anticipated Q1 earnings season. High expectations are riding on these results, which could significantly influence market direction.

Nair also points out that while robust macroeconomic fundamentals and increased government spending continue to provide underlying support, the market's position at a critical juncture following its recent rally suggests that caution will likely persist in the near term.

Top Stock Picks for Thursday, July 3rd

Looking for opportunities amidst the current market climate? Here are five stocks recommended by expert analysts Sumeet Bagadia, Executive Director at Choice Broking, and Shiju Koothupalakkal, Senior Manager of Technical Research at Prabhudas Lilladher.

Sumeet Bagadia's Recommendations:

Tata Steel Ltd. (TATASTEEL)

Buy around: ₹165.88

Target Price: ₹178

Stop Loss: ₹160

TATA Steel is showing strong upward momentum, bouncing back impressively from recent lows. The stock has broken through its previous resistance at ₹165 with solid price action and increased trading volumes. This signals a clear shift in momentum, with the stock now forming a series of higher highs and higher lows—a classic sign of a sustained bullish reversal.

Aurobindo Pharma Ltd. (AUROPHARMA)

Buy around: ₹1158

Target Price: ₹1240

Stop Loss: ₹1117

AUROPHARMA has recently rebounded from a critical support zone. The stock has successfully broken out of a falling trendline on the daily chart and formed a "Morning Star" candlestick pattern, an early indicator of a potential trend reversal. This bullish breakout is further supported by rising trading volumes, signaling renewed buying interest and improving market sentiment.

Shiju Koothupalakkal's Intraday Picks:

HBL Engineering Ltd. (HBL ENGINEERING)

Buy around: ₹626.85

Target Price: ₹657

Stop Loss: ₹612

HBL Engineering has been on an upward trend, forming a series of higher bottom patterns on its daily chart. It found strong support near the confluence of the 200-period Moving Average (MA) and 50-period Exponential Moving Average (EMA) around the ₹560 level, indicating a positive bias and potential for further upward movement. The Relative Strength Index (RSI) is also well-positioned, showing strength and signaling significant upside potential.

Inox Green Energy Services Ltd. (INOX GREEN)

Buy around: ₹156.35

Target Price: ₹166

Stop Loss: ₹152

After a recent correction and a period of consolidation, Inox Green is showing signs of recovery with a positive candle formation, suggesting a potential for further gains. The RSI is currently well-positioned and indicates a positive trend reversal, signaling a buy with considerable upside potential. Technically, the chart looks promising for a move towards the ₹166 level.

Can Fin Homes Ltd. (CANFIN HOMES)

Buy around: ₹809

Target Price: ₹850

Stop Loss: ₹792

Can Fin Homes has consistently held above its important 50-EMA level, demonstrating a clear rising trend. Recently, it formed another higher bottom, taking support near the confluence of the 200-period MA and 50-EMA at the ₹755 zone. A decent pullback with a bullish candle formation has improved the bias, and further upside is anticipated. The chart appears technically attractive for a move towards the ₹850 target.