Will Nifty Remain Range-Bound Between 26,300 and 27,500 by Year-End?
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Synopsis
As the Nifty50 rebounds, investors eye key indicators that could shape the stock market's future. Will the index maintain its upward trajectory or face resistance? Discover insights into U.S. tariffs, geopolitical tensions, and domestic economic strategies that could impact your investments.
Key Takeaways
- Nifty50 is projected to face resistance around 26,300.
- A breakout could see it exceed 27,500 by year-end.
- Investors should monitor U.S. tariff policies and inflation trends.
- RBI rate cuts are expected to boost economic growth.
- Geopolitical developments will also influence market performance.
New Delhi, July 17 (NationPress) A recent report indicates that the Indian stock markets are projected to maintain their upward trend, supported by robust macroeconomic fundamentals and favorable policy measures. As the Nifty50 rebounds from its March lows, it is anticipated that there will be resistance at 26,300, and a breakout could propel the index beyond 27,500 by the end of the year.
Key factors to monitor in the second half of 2025 include the clarity on U.S. tariff regulations and their implications for global trade, the resolution of geopolitical issues in the Indo-Pacific and Middle East, and progress on significant bilateral agreements like the UK–India FTA, according to the latest insights from Smallcase Managers, an investment platform provider.
Furthermore, investors are advised to keep a close eye on U.S. inflation trends for the remaining months of 2025.
“In the coming year, it is essential to track certain pivotal developments that could influence the markets,” stated Robin Arya, founder and smallcase Manager at GoalFi.
While current U.S. inflation appears manageable, future projections remain uncertain due to the potential effects of tariff regulations on the supply chain and inflation rates.
The report suggests that the U.S. Federal Reserve may initiate rate cuts, which would positively impact the markets and enhance Foreign Institutional Investor (FII) inflows, contingent on the swift completion of trade agreements and the maintenance of competitive pricing for goods supplied to the U.S.
This calendar year, the Fed has held rates steady, citing rising concerns over unemployment and inflation amid market uncertainties.
The expectation of further rate cuts by the RBI MPC is also a significant domestic factor that could stimulate economic growth and household spending, thus benefiting the markets.
“With the interest rate reduction cycle underway, if the monsoon season is favorable and inflation is kept in check, additional interest rate cuts by the RBI may be on the horizon, stimulating economic growth,” remarked Vikas Gupta, CEO of Omniscience Capital and smallcase Manager.
Moreover, if earnings growth remains robust, the markets may experience significant buoyancy by the end of 2025, Gupta concluded.
Point of View
I believe it's crucial to consider the interplay between domestic and global economic factors as we analyze market trends. The anticipated stability of the Nifty index reflects not only local policy measures but also broader international influences. Staying informed and strategic is essential for navigating these dynamics effectively.
NationPress
17/07/2025
Frequently Asked Questions
What is the expected range for Nifty by year-end?
The Nifty is expected to be range-bound between 26,300 and 27,500 by year-end.
What factors could affect the Nifty’s performance?
Key factors include U.S. tariff policies, geopolitical tensions, and domestic economic strategies like RBI rate cuts.
How might U.S. inflation trends impact the Nifty?
U.S. inflation trends could influence market sentiment and FII inflows, affecting the Nifty's performance.
What role do trade agreements play in market outlook?
Successful trade agreements can stabilize supply chains and enhance investor confidence, positively impacting the markets.
What is the significance of RBI rate cuts?
RBI rate cuts can stimulate economic growth and increase household consumption, benefiting the overall market.
