Stock Market Today: Flat-to-Positive Trading Likely; Nifty Support at 25,000, HDFC Bank Bonus Issue in Focus

Indian equity markets are likely to open on a flat to mildly positive note on Thursday, July 17, supported by firm global cues and stable domestic flows. As of 6:47 AM, GIFT Nifty futures were trading 14 points higher at 25,260, signaling a subdued yet optimistic start for the bourses.

Nifty Outlook and Option Data: Support Seen at 25,000, Resistance at 25,500

The Nifty 50 ended July 16 with a modest gain of 16 points at 25,212, managing to close above a key support level after recovering from an intraday low of 25,121. The recovery was driven by renewed buying interest, especially in banking and PSU stocks.

What Options Data Predicts?

Options data suggests a near-term resistance at the 25,500 level, where the maximum Call open interest (1.33 crore contracts) is concentrated. This is followed by the 25,300 and 25,200 strikes. On the downside, the 25,000 strike holds the maximum Put open interest (1.17 crore contracts), marking it as a crucial support zone.

Notable Call writing was seen at the 25,800, 25,250, and 25,550 strikes, while the 26,000 strike saw the highest Call unwinding, shedding 35.75 lakh contracts. On the Put side, the 25,150 strike saw the highest writing with 34.49 lakh contracts added, indicating bullish sentiment around current levels.

India VIX Hits 15-Month Low

The India VIX, a measure of market volatility, fell for another session and touched a fresh 15-month low, dropping 2.09% to 11.24. This is the lowest closing level since April 26, 2024, reflecting increasing investor confidence and stability in the market.

HDFC Bank in Spotlight: First-Ever Bonus Issue on the Cards?

In a key corporate development, HDFC Bank announced that its board will consider a bonus share issue and special interim dividend during its meeting on July 19, alongside the approval of its Q1 FY26 results. This would mark the bank's first-ever bonus issue, and the news has sparked significant interest among investors. The proposal remains subject to shareholder and regulatory approvals.

Nifty Sectoral and Stock Highlights

In Wednesday's session, the market traded in a narrow range, with PSU Banks, Media, and IT emerging as the top gainers, while Metal, Pharma, and Healthcare stocks came under pressure.

The Nifty PSU Bank index surged 1.8% amid reports that the government may introduce fresh financial sector reforms. Among major movers, SBI saw strong gains following reports that it could launch a Rs 25,000 crore Qualified Institutional Placement (QIP) as early as today.

Top gainers in the Nifty 50 included Mahindra & Mahindra, Wipro and Tech Mahindra, while Shriram Finance, Eicher Motors, and Sun Pharma led the laggards.

The broader markets paused after recent sharp rallies, with the Nifty Midcap 100 and Smallcap 100 indices ending flat, signalling some consolidation.

Global Cues: Mixed Signals from U.S., Positive Europe Market

While European indices posted gains, with Germany's DAX up 0.31% and the FTSE 100 rising 0.13%, U.S. futures presented a mixed picture. Dow Jones futures edged 0.07% higher, while Nasdaq and S&P 500 futures slipped 0.25% and 0.07% respectively, suggesting a cautious mood ahead of key U.S. economic data and earnings releases.

Domestic Cues: FIIs Sell, But DIIs Stay Strong

Despite Foreign Institutional Investors (FIIs) pulling out Rs 11,777 crore so far in July, Domestic Institutional Investors (DIIs) have stepped in with net inflows of Rs 15,746 crore. This strong domestic participation could continue to offer support and limit downside risks for the market.

With mildly positive global cues, firm domestic support, easing volatility and stock-specific developments like HDFC Bank's bonus issue proposal, Indian markets are expected to start flat to slightly higher on July 17. Traders should stay cautious around resistance levels near 25,500 and monitor U.S. earnings and data updates for short-term direction.

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.