Trade Setup for July 1: Nifty Faces Short-Term Weakness, Support Near 25,470

The NSE Nifty 50 index is expected to witness short-term weakness following a session marked by profit booking and cautious investor sentiment. On Monday, the Nifty closed lower, reflecting a pullback after recent gains, as traders booked profits at elevated levels ahead of the new trading week.

The Bank Nifty, a key sectoral index, formed a narrow-body bearish candle on the daily chart. This technical formation suggests mild profit booking among banking stocks, which have been leading the rally in recent weeks. The presence of this bearish candle signals a potential pause or minor correction in the upward momentum, as traders look to consolidate gains before resuming fresh positions.

Technical indicators across the market point towards increased volatility and cautious trading in the near term. Analysts highlight the importance of the 25,470 level as a crucial support zone for the Nifty 50. A sustained hold above this support could pave the way for a recovery, while a breach might open doors for further downside pressure.

Market participants are advised to closely monitor key resistance levels and volume trends to gauge the strength of any pullback. Additionally, broader macroeconomic factors, including global cues, corporate earnings, and policy developments, could influence the market’s direction over the coming days.

With the Indian equity markets navigating through profit-taking phases, investors are encouraged to adopt a disciplined approach, balancing risk with opportunities. Short-term traders may look for tactical entry points near support zones, while long-term investors should focus on fundamentals and market valuations.

In summary, the trade setup for July 1 signals a cautious outlook for the Nifty, with short-term weakness expected amid profit booking. Key support at 25,470 will be critical in determining the index’s next move, while the broader market remains under watch for fresh cues.