Indian benchmark indices are expected to open on a flat to positive note today, as indicated by the GIFT Nifty, which suggests a marginal gain of around 17 points in the Nifty 50. Market sentiment continues to remain mildly indecisive, following a cautious close in the previous session.

The Nifty index traded sideways in the initial half of the session but encountered selling pressure later in the day, eventually closing slightly above the 25,100 mark. A Bearish Engulfing pattern formed on the daily chart, indicating a potential short-term reversal. Immediate support is placed at 25,000, with a stronger support zone between 24,900–24,700. A breakdown below these levels may accelerate downside momentum. On the upside, 25,250 acts as the immediate resistance, while a decisive breakout above the 25,400–25,500 range is required to resume the bullish trend.

The Bank Nifty index closed lower by 358.80 points (-0.63%), forming a strong bearish candle on the daily chart, signaling increased selling pressure and a possible pause in the recent uptrend. Immediate support lies at 56,500, followed by a crucial level near 56,300. A breach below these supports may lead to extended downside. On the higher side, resistance is seen at 57,000, with a major hurdle at 57,300–57,500. Until a breakout above this zone occurs, the trend remains cautious, favoring a sell-on-rise strategy with strict risk management.

On the institutional side, Foreign Institutional Investors (FIIs) remained net sellers for the second consecutive session on July 17, offloading equities worth Rs 3,694 crore. Meanwhile, Domestic Institutional Investors (DIIs) continued their buying spree for the ninth straight session, purchasing equities worth Rs 2,820 crore.

Given the current environment of heightened volatility and mixed signals, traders are advised to adopt a cautious “sell-on-rise” approach, especially when using leverage. Booking partial profits during rallies and implementing tight trailing stop-losses is recommended to manage risk. Fresh long positions should only be considered if the Nifty sustains above the 25,378 level. While the broader market undertone remains cautiously bullish, it is essential to closely monitor key technical levels and evolving global cues.