July 16, 2025: After a four-day losing streak, Indian benchmark indices — Sensex and Nifty 50 — staged a smart recovery on Tuesday, July 15, buoyed by cooling inflation and hopes of rate cuts by the Reserve Bank of India (RBI).
Retail Inflation at 6-Year Low
According to official data, retail inflation dipped to 2.10% in June, a 77-month low and well within the RBI’s comfort range of 2%-6%. The steep fall, largely driven by easing food prices, has prompted analysts to expect a 25-50 bps rate cut in upcoming monetary policy meetings.
This data reinvigorated investor sentiment, pushing Sensex up 317 points to close at 82,571, while the Nifty 50 gained 113.50 points to settle at 25,196.
Broader Markets and Sectoral Performance
The rally wasn’t limited to benchmark indices. BSE Smallcap surged 0.95%, while Midcap index rose 0.83%, showing widespread optimism. All 13 major sectors on the NSE ended in the green.
Technical Outlook: More Upside Likely
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, shared a bullish outlook on both Nifty and Bank Nifty, predicting further gains if key resistance levels are breached.
“Nifty has formed a higher bottom pattern near the 25,000 zone, sustaining above the crucial 50EMA level of 24,900. Immediate upside targets lie at 25,500 and 25,700,” she said.
For Bank Nifty, which closed above 57,000, Parekh noted that a breakout above the 57,600 level could open the doors for 58,500 and even 60,000 in the coming days.
- Nifty Support: 25,000
- Nifty Resistance: 25,400
- Bank Nifty Range: 56,600–57,700
Stock Picks: Top 3 Recommendations by Vaishali Parekh
Here are three stock buy recommendations from Parekh for short-term gains:
- City Union Bank
- Buy at: ₹218
- Target Price: ₹228
- Stop Loss: ₹214
- Varun Beverages
- Buy at: ₹469.80
- Target Price: ₹494
- Stop Loss: ₹460
- Bodal Chemicals
- Buy at: ₹76.88
- Target Price: ₹81
- Stop Loss: ₹75
With favorable macroeconomic indicators and technical support levels holding firm, analysts believe the market is poised for further upside, provided global sentiment remains stable. Investors are advised to stay selective and focus on stocks with strong fundamentals and favorable risk-reward setups.