Photo-Pixabay
Published: July 3, 2025, 5:21 PM | By Agam Kaushik(Co-Editor) | Linkedin
Last Updated: July 3, 2025, 8:01 PM
The Indian stock market continued its downward trend on Thursday, July 3, 2025, marking the second consecutive day of declines for the benchmark indices. Both Sensex and Nifty closed lower, primarily weighed down by profit booking in financial and banking stocks. Despite some pockets of resilience in sectors like IT, Auto, and Media, the overall market sentiment remained cautious, with investors taking a wait-and-watch approach.
Market Highlights: July 3, 2025
- Sensex Declines: The BSE Sensex slipped 170.22 points (0.20%) to close at 83,239.47, after touching an intraday high of 83,850.09.
- Nifty Finishes Lower: The NSE Nifty50 dropped by 48.10 points (0.19%) to settle at 25,405.30. The market breadth was negative, with 29 of the 50 tracked stocks ending in the red.
- Financial Sector Weakness Continues: The Nifty Bank index declined by 207.25 points (0.36%) to close at 56,791.95. The Nifty Financial Services index also fell by 126.8 points (0.47%) to 26,734.9. Profit booking in financial heavyweights continued to be a significant drag.
- Top Nifty Decliners: Notable decliners included SBI Life (-2.51%), Kotak Bank (-1.96%), and Bajaj Finance (-1.39%), contributing significantly to the index’s slide. Punjab National Bank (-3.18%) was also among the top losers in the PSU Bank space.
- Select Gainers: Despite the overall subdued market, stocks like Apollo Hospitals (+1.77%), Maruti (+1.01%), Dr. Reddy’s, and Hero Motors managed to post gains. Nifty Media index was a top gainer, up by 1.45%.
- Market Breadth: The market breadth was negative, with more declining stocks than advancing ones (1472 stocks declined, 1450 gained, and 103 remained unchanged on the BSE).
- India VIX: The volatility index (India VIX) eased by 0.48% to settle at 12.38 points, indicating reduced market fear despite the declines.
- Global Cues: US markets edged higher on strong jobs data, tempering hopes for a July rate cut. Gold prices declined due to this.
Also Read – Today Gold Rate In Major Indian Cities Check in Yours
SENSEX Prediction for July 4, 2025
The Sensex has now seen two consecutive days of declines, indicating a shift from the strong bullish momentum. Profit booking is evident, and key levels will be crucial for tomorrow’s session.
- Current Trend: Sideways to Negative
- SENSEX (83,239.47): Continue to exercise caution. The market may remain under pressure.
- Daily Closing Stoploss: Traders should be mindful of the 82,515 level.
- Fresh Short Position: Initiate if Sensex closes decisively below 82,515.
- Support Levels: 82,515 – 82,067
- Resistance Levels: 83,964 – 84,412
NIFTY Prediction for July 4, 2025
Nifty has trended lower this week, with profit booking in financials being a key drag. It closed materially below the day’s high, indicating selling pressure towards the end of the session.
- Current Trend: Sideways to Negative
- NIFTY (25,405.3): Traders should adopt a cautious stance, potentially a “sell-on-rise” strategy.
- Daily Closing Stoploss: 25,177
- Fresh Short Position: Initiate if Nifty closes below 25,177.
- Support Levels: 25,177 – 25,036
- Resistance Levels: 25,633 – 25,774
BANKNIFTY Prediction for July 4, 2025
Bank Nifty has experienced profit booking and shown signs of worsening momentum, falling for three of the past four days. It has settled at its near-term EMA trend line, a critical technical level.
- Current Trend: Negative
- BANKNIFTY (56,791.95): Maintain caution; the banking sector is under significant profit booking.
- Daily Closing Stoploss: 56,262
- Fresh Short Position: Initiate if Banknifty closes below 56,262.
- Support Levels: 56,262 – 55,934
- Resistance Levels: 57,322 – 57,650
FINNIFTY Prediction for July 4, 2025
FINNIFTY is demonstrating a bearish sentiment, with heavyweight financial stocks contributing to its decline. The market breadth for the sector was decidedly negative.
- Current Trend: Negative
- FINNIFTY (26,734.9): Bearish sentiment prevails; continued weakness is expected if key supports are breached.
- Daily Closing Stoploss: 26,694
- Fresh Short Position: Initiate if FINNIFTY closes below 26,694.
- Support Levels: 26,694 – 26,540
- Resistance Levels: 26,971 – 27,248
FAQs – Stock Market Outlook for July 4, 2025
Q1. What were the key drivers for the market decline on July 3, 2025 ?
The market decline on July 3, 2025, was primarily driven by continued profit booking in the financial and banking sectors, coupled with a cautious sentiment among investors. Despite some positive global cues (US jobs data), the overall market was weighed down by sector-specific weakness and the expiry of weekly F&O contracts.
Q2. Is Nifty still in an uptrend ?
Nifty has seen profit booking and ended lower for the second consecutive day on July 3, 2025. While the longer-term trend might still have underlying strength, the near-term momentum has clearly shifted to a cautious or sideways-to-negative bias, especially with the observed profit booking.
Q3. What’s the outlook for the banking sector ?
The banking sector, as indicated by Banknifty and Finnifty, is experiencing significant profit booking and showing signs of weakening momentum. The immediate outlook remains negative, and further declines could be seen if key support levels are not held.
Q4. Should traders consider long positions tomorrow ?
Given the prevailing profit booking and cautious sentiment, particularly in the heavyweight financial sector, traders should exercise extreme caution with long positions. A “sell-on-rise” strategy might be more appropriate. It’s crucial to implement strict stop-losses and consider entering only on clear signs of reversal or sustained upward momentum.
Q5. What are the critical levels to watch for Sensex tomorrow ?
For Sensex on July 4, 2025, key support levels are 82,515 and 82,067. On the upside, resistance levels are at 83,964 and 84,412. A decisive break below the support levels could indicate further downside, while a strong rebound above resistance would signal a renewed bullish trend.