More Stories

Informist, Friday, Jul. 18, 2025

 

By Gopika Balasubramanium

 

 

MUMBAI – Earnings of three heavyweight companies--Reliance Industries, HDFC Bank, and ICICI Bank--will determine the direction of the market next week, analysts said. These stocks have a combined weightage of 31.6% in the Nifty 50. Decisions on India-US trade deal will also be a keenly monitored, analysts said. 

 

"Broadly, Nifty 50 will remain in a range of 24800 and 25500 levels till July-end," said Nandish Shah, a senior technical and derivatives analyst at HDFC Securities. There will be volatility in the 50-stock index as traders react to earnings of large-cap companies for some more days, he said. "Nifty will continue to see sharp movements in the coming days, but it should not be taken as trend reversals," Shah said, and added that stock-specific will continue, and overall index will be in the range.

 

The Nifty 50 closed at 24968.40 points, down 143.05 points or 0.6%. The index fell below 25000 points intraday for the first time since Jun. 24. Technical analysts see the index finding support in 24900 points and facing resistance at 25260 points. The BSE Sensex closed at 81757.73, down 501.51 points or 0.6%. "On a weekly basis, the view is after three weeks of correction, market (Nifty 50) may find support near 24,800 level," said Brijesh Ail, senior technical analyst at IDBI Capital Markets & Securities. "... most probably next week can be one of the positive week," he said. Some technical analysts also said investors will follow a "sell on rise" strategy till its goes below 25260 points. 

 

Market awaits further updates on India-US trade deal in the coming week. "India's tariffs should be lower than its key competitiors in South Asia, such as Vietnam, Bangladesh, Indonesia," a head of research at a mid-sized domestic brokerage said. Currently, US has levied 19% tariff on imports from Vietnam, and 20% tariff on Indonesian imports."If India cuts a deal with 10-15% tariffs, then it would enthuse the market," the research head said. Some technical analysts also said the market direction will also be determined by the outcome of India-US deal.

 

Coming back to earnings of the heavyweights, RIL will report its earnins post market hours Friday. Earnings of HDFC Bank and ICICI Bank are due Saturday. 

 

Analysts said RIL is likely to see an all-round performance with three major businesses – telecommunications, retail, and refinery – expected to report year-on-year growth in their operating profits. While the oil-to-chemicals business is expected to see a rebound, its telecom and retail businesses continue on their growth path. The company is expected to report a consolidated revenue of INR 2.4 trillion and a net consolidated profit of INR 200 billion, during the quarter, according to estimates by 10 brokerages. The stock is expected to find support between INR 1,440-INR 1420 and face resistance at INR 1,525, Vipin Kumar, assistant vice-president of derivatives and technical at Globe Capital Market, said. 

 

For the June quarter, ICICI Bank is expected to perform better on year but will likely be worse sequentialy, due to compression in the net interest margin and a sharp rise in provisions, brokerages said. As per average of estimates by 15 brokerages, ICICI Bank is expected to report a 7.5% on-year rise in net profit and an 8.2% on-year rise in net interest income. Sequentially, the net profit is seen declining 6%. The stock is expected to find support at INR 1,388 and face resistance at INR 1,450-INR 1,465, Kumar of Globe Market said. 

Meanwhile, HDFC Bank will likely fare better than its peers in June quarter due to expansion in margins. Its net profit is seen rising 7% on year amid its post-merger adjustments. The rise in net profit was likely limited as its deposit grew at a faster pace than its loans, brokerages said. Its net interest income is seen rising 6% on year. The stock is expected to find support at INR 1,890 and face resistance at INR 2,025, Kumar of Globe Market said.   End

 

Edited by Akul Nishant Akhoury

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.