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Key heavy weight earnings to drive markets sentiment!

ICICIdirect Research 18 Jul 2025 DISCLAIMER

Equity benchmarks extended losses over third consecutive week in the absence of clarity on India - US bilateral trade deal. Nifty lost 0.7% to settle the week at 24970. However, broader market outperformed by gaining 1% during the week. Sectorally, Realty, PSU Bank, Auto remained at forefront while Defence, IT extended losses.
In the upcoming week, volatility to remain elevated as one third of Nifty weightage is coming out with the Q1 earnings post market hours along with that any development on the US bilateral trade agreement would trigger momentum in the market.
What to expect: With current 2.9% correction, Nifty has approached lower band of rising channel. We expect index to find supportive efforts in the vicinity of 24800 levels and gradually stage a rebound wherein 25800 would continue to act as resistance.
Structurally, since April intermediate corrections have been limited to 3% while sustaining above its 50 days EMA. In addition to that, slower pace of retracement, highlights robust price structure.
Market Breadth: Despite weakness in the benchmark, the market breadth has seen improvement as currently 65% of stocks of Nifty 500 universe are trading above their 200 days SMA compared to last weeks reading of 60% while last month reading was 52%

 

Key Monitorable:

Earnings update from index heavy weights would be important to watch out for
All eyes will be on outcome of US-India bilateral trade deal.
Falling US Dollar index would result into FII's inflow 
India VIX has extended losses and sustaining below one year low of 12, indicating participants anxiety at lowest level  

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