Market Outlook: Technical Call of the Day & Top 5 Stocks in Focus for 2nd Jul 2025

The Nifty 50 ended the July 1 trading session with modest gains, closing at 25,543—up 25 points—after a day of sideways movement. Despite the lack of strong momentum, the index managed to defend the 25,500 level on a closing basis for the second straight session. The price action remained within the prior day’s range, leading to the formation of a Doji-like candlestick on the daily chart—a typical indicator of market indecision and potential short-term consolidation.

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Technically, the index continues to show resilience above the 25,400–25,300 support zone. As long as this zone is protected, an upward move toward the 25,700–25,800 levels is anticipated. A decisive breakout above this band could open the doors for a rally toward the 26,000 psychological mark. Conversely, on the downside, 25,200 is likely to act as a crucial support level in case of any short-term pullbacks.

From a broader perspective, the trend remains constructive. The index is comfortably trading above its key moving averages, underscoring the underlying bullish momentum. Moreover, the formation of a higher top-higher bottom structure on the daily chart further reinforces the medium-term bullish outlook. Any short-term dips or sideways movements could help the index build a solid base before the next leg higher.

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Options data also suggests a near-term range-bound movement. Weekly options positioning indicates a likely trading range between 25,400 and 25,700, with the highest Call open interest seen at 26,000, followed by 25,600 and 25,700. Notable Call writing activity was observed at 25,600 and 26,000, while the 25,500 Put held the maximum open interest on the downside, indicating strong support at that level.

In contrast, the Bank Nifty displayed relative strength, outperforming the broader market by surging 147 points to close at a new record high of 57,459. The index formed a small bullish candle on the daily chart, marked by a long lower shadow, which suggests strong buying interest on intraday dips. The bullish undertone remains intact as long as the index stays above the 57,100–57,200 support band, with potential upside targets placed at 57,800 and subsequently 58,200.

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Meanwhile, India VIX continued to reflect subdued market volatility, declining by 2.01% to settle at 12.53. The low volatility environment favors the bullish camp and supports the ongoing uptrend. 

On the sectoral front, PSU banks and consumer durables saw mild gains, advancing 0.7% and 0.4% respectively. However, weakness was observed in FMCG, media, and power sectors, which slipped between 0.4% and 1.3%.

IOB - TECHNICAL CALL OF THE DAY

Indian Overseas Bank has been making higher highs and higher lows which is a classic sign of a bullish trend supported by increase in volumes as well. The stock has taken support near its 40-EMA levels of Rs 38.60 on daily chart and has managed to close above those levels indicating strength in the near term along with positive RSI divergence on daily chart indicating bullish implications. 

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BUY IOB CMP 39.95 SL 36.50 TGT 44.13

Top stocks to watch out for 2nd Jul

AstraZeneca Pharma:

• AstraZeneca Pharma has received permission from the Central Drugs Standard Control Organisation, Directorate General of Health Services, Government of India to import for sale and distribution of Durvalumab Solution for Infusion 120 mg/2.4 ml and 500 mg/10 ml (Brand name: Imfinzi) for an additional indication.

• Through this approval, Durvalumab in combination with carboplatin and paclitaxel is indicated for the first-line treatment of adults with primary advanced or recurrent endometrial cancer who are candidates for systemic therapy, followed by maintenance treatment with Durvalumab in combination with olaparib in endometrial cancer that is mismatch repair proficient (pMMR).

Hero MotoCorp:

• Hero MotoCorp, dispatched 553,963 motorcycles and scooters during June 2025, translating into a 10% growth over June 2024. The company recorded 3.94 lakh VAHAN registrations, reflecting sustained demand across urban and rural markets. The onset of monsoon across most parts of the country and positive economic outlook are expected to accelerate demand in the lead-up to the festive season. 

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Paras Defence:

• Paras Anti Drone Technologies Pvt Ltd, a subsidiary of Paras Defence announced that France-based CERBAIR, a leading European counter-UAV company, is intending to acquire up to 30 CHIMERA 200 systems (an advanced Man portable radio frequency detection and neutralization device) designed as primary defence against drone and swarm drone threats. The deal worth approximately Rs 22 crore by Paras, strengthens India’s position as an emerging and reliable exporter of sophisticated defence technologies. 

Lupin:

• Lupin has received approval from the United States Food and Drug Administration (USFDA) for its Abbreviated New Drug Application for Loteprednol Etabonate Ophthalmic Gel, 0.38%. Loteprednol Etabonate Ophthalmic Gel used for the treatment of postoperative inflammation and pain following ocular surgery is bioequivalent to Lotemax® SM Ophthalmic Gel of Bausch & Lomb Inc. Lupin is the exclusive first-to-file for this product and is eligible for 180 days of generic drug exclusivity. This product will be manufactured at Lupin’s Pithampur facility in India.

Asian Paints:

• India’s competition regulator Competition Commission of India (CCI) launched a formal abuse of dominance investigation into Asian Paints following a complaint from Birla Opus Paints, a unit of Birla Group. CCI found preliminary evidence indicating that Asian Paints violated antitrust rules. According to the complainant, Asian Paints as the market leader tried to stifle new entrants and suppress competition in the paints market.