There is confusion over whether July 7th is a holiday due to the Muharram that is observed widely in India. In Mumbai, the 10th Muharram, popularly called Ashura, was observed on July 6. While it is unclear whether there is a public holiday or a bank holiday on Monday, the same question arises for trading on BSE and NSE, which are based in Mumbai. Is trading on the BSE and NSE closed or open on July 7th?
July 7 Holiday:
First and foremost, Muharram is not the national holiday of India. It is a regional and one of the many public holidays identified by states, but it varies from state to state and depends on moon sighting. Since Muharram, which is the first month of the Islamic calendar, commenced on June 27, the 10th day of Ashura was observed on July 6, 2025, across many states.
July 6th is a Sunday, so every market, bank and company is automatically closed. Also, the government has recognized July 6th as the public holiday for Ashura. The popular demand in many states is that since Ashura was on Sunday, July 7th should be its substitute holiday for schools, offices, banks and the public.
But there is confusion about whether states will observe the special holiday on July 7 for Muharram.
Holidays in India are divided into various categories. There are national holidays, special holidays like key events or birthdays of notable figures, or festival holidays apart from school holidays that also take into account seasons like Summer, Christmas Winter or Diwali holidays.
So the question is whether India will have a holiday on July 7th for the Ashura festival. And will the stock market be closed on Monday?
Stock Market Holiday On July 7:
According to the BSE and NSE holiday list for 2025, the market will not observe any special holidays apart from its default weekend Saturdays and Sundays. Hence, trading in equities, equity derivatives, forex, bonds, and commodities, among other market-related instruments will be opened on July 7, 2025.
As of now, there have been no special notices from BSE and NSE for the July 7th holiday. Hence, the initial list of holidays on BSE and NSE pertains.
Sensex, Nifty Prediction:
Last week, on July 4th, the Sensex closed at 83,432.89, up by 193.42 points or 0.23%. While Nifty 50 ended at 25,461.00, higher by 55.70 points or 0.22%.
However, overall in the trading week from June 30th to July 4th, despite the latest surge, the Sensex and Nifty's weekly performance was down by 343.94 points and 169.75 points respectively.
Among sectors, as per Amol Athawale, VP-Technical Research, Kotak Securities, Consumer and Healthcare indices outperformed, the Consumer index gained 2 percent, and Healthcare rallied 1.90 percent, whereas the Reality index lost the most, shed over 3 percent. Technically, on intraday charts, it is holding a lower top formation, and on weekly charts, it has formed a bearish candle, which is largely negative. However, the short-term market texture still appears to be positive.
"We believe that currently, the market is witnessing non-directional activity; perhaps traders are waiting for either side breakout," said Athawale.
Explaining last week's decline, Ajit Mishra - SVP, Research, Religare Broking said, the decline was primarily driven by profit-taking, as investors adopted a cautious stance ahead of key global trade events. Concerns around potential U.S. trade retaliation created doubts about the timely finalization of trade agreements with major economies, including India. However, the downside remained limited following reports of a likely interim deal between India and the U.S. ahead of the scheduled deadline.
For the trading week from July 7th to 11th, Religare's expert said, the coming week holds significant importance not only for Indian markets but for global equities as well. The most anticipated event is the outcome of the U.S. trade deadline on July 9, which could shape global trade dynamics. Investors will also closely monitor the release of the U.S. Federal Reserve's FOMC minutes on the same day.
Domestically, the spotlight will shift to corporate earnings, with IT major TCS and retail giant Avenue Supermarts among the prominent companies scheduled to report their quarterly results, setting the tone for the Q1 earnings season.
Technical Outlook:
According to Mishra, after a brief breakout in the previous week, the Nifty has reverted to its consolidation phase, ending marginally lower. A decisive move beyond the gap area-i.e., the 25,650-25,750 zone-will be required to resume the uptrend toward fresh all-time highs. On the downside, the 20-day exponential moving average (DEMA) around 25,200, which coincides with the upper boundary of the earlier consolidation range, will serve as the first key support, followed by the 24,800 level.
For the bulls, Kotak's expert said, "25,500/83600 would act as an immediate resistance zone. If the market succeeds in trading above this level, it could move up to 25,670/84100. A successful breakout above this could push the market towards 25,800-25,900/85000-85300. On the flip side, if the market falls below 25,300/83000, sentiment could turn negative. Below this level, the market could slip to 25,000-24,950/82100-81900.For Bank Nifty, the 20-day SMA (Simple Moving Average) at 56,500 is a key level to watch. Below this, Bank Nifty could decline to 56,200-56,000. On the other hand, as long as it remains above 56,500, the chance of reaching 57,500-57,800 remains bright."
In case of banking stocks, Mishra said, the banking index continues to trend upward, albeit gradually. However, a mixed performance among private sector heavyweights such as HDFC Bank, ICICI Bank, Kotak Bank, and Axis Bank is limiting momentum. On the contrary, PSU banks remain strong and are showing trend consistency. Adding he said, "We expect the index to maintain its current trajectory and move toward the 57,600-58,400 zone. In case of a dip, immediate support lies at the 20 DEMA (~56,500), with stronger support near 55,500."
What Should Investors Do?
"Given the fluid global environment—especially concerning U.S. trade policy—investors should prepare for continued volatility. Nonetheless, we maintain a positive outlook and recommend a stock-specific approach, with a focus on earnings quality and relative strength as the Q1 earnings season progresses," said Mishra.
While most key sectors, except FMCG, are witnessing rotational participation, the analyst believes, IT could deliver a positive surprise if earnings meet expectations. Additionally, the pharma and energy sectors may see renewed buying interest. Broader markets continue to attract flows; however, selective caution is advised due to overbought conditions in certain segments.
Disclaimer: The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.
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