the Media and Reality indices corrected sharply
Amol Athawale,
VP-Technical Research,
Kotak Securities
Mumbai, July 26, 2025: In the last week, the benchmark indices continued their weak momentum. The Nifty ended 0.53 percent lower, while the Sensex declined by 294 points. Among sectors, the Media and Reality indices corrected sharply; Media shed 5.88%, and Reality was down by 5.14%. However, some buying interest was seen in selective Healthcare and Digital stocks. During the week, the market once again faced resistance near 25,250/83000 and reversed sharply.
Technically, on weekly charts, it has formed a bearish candle, and on daily charts, it is holding a lower top formation, which is largely negative. Additionally, it breached the 50-day SMA (Simple Moving Average), a crucial support zone, and is currently trading comfortably below it. We believe that as long as the market remains below 25,000/82200, weak sentiment is likely to continue. On the downside, the correction wave may extend to 24,600-24,500/81000-80700.
On the upside, a move above 25,000/82200 could change the sentiment. A bounce-back is likely to continue until 25,250/83000 or the 20-day SMA. Further upside may also push the market up to 25,400-25,500/83500-83800.
For Bank Nifty, the short-term outlook is weak, but a fresh sell-off is possible only if it falls below the 50-day SMA at 56,300. Below this level, it could slip to 56,000-55,500. Conversely, if it moves above the 20-day SMA at 57,000, it could rally to 57,500-57,800.
Gaurav Garg, Lemonn Markets Desk, adds: “The Indian stock market extended its losing streak for a second straight session on Friday, July 25, with benchmark indices witnessing sharp cuts across the board. The Sensex plunged nearly 800 points intraday to touch 81,405, while the Nifty 50 dipped 1% to hit a low of 24,806, both closing at multi-week lows. Mid and smallcap stocks bore the brunt, falling as much as 2%, and dragging the broader market lower. In just two sessions, the Sensex and Nifty have lost over 1.6%.
Multiple factors are contributing to the market downturn, including delayed progress on the India-US trade deal, continued FPI outflows, and muted Q1 earnings. FPIs have sold nearly ₹28,500 crore worth of equities in July, reflecting concerns over steep valuations and uncertain global cues. The Nifty 50 breaking below the psychological 25,000 support level has added to technical weakness, raising the possibility of further downside. We remain cautious in the near term, especially amid stretched valuations in the broader market."
