Stock markets are likely to remain in consolidation phase. Gift Nifty at 25,670 signals another positive opening for the Indian markets. Analysts expect profit-booking to keep the market under check. With the results season set to begin from next week, experts said traders will keep their positions light. Meanwhile, global cues will set the direction, they added.
Osho Krishan,Sr. Analyst – Technical & Derivative Research, Angel One Ltd, said: the market remains sanguine with sectoral rotation being evident. Hence, in light of this dynamic environment, adopting a stock-centric approach is highly recommended, which might allow investors to capitalise on opportunities and potentially achieve outperformance.
Technically, also the market is in the neutral zone said analysts. Dr. Praveen Dwarakanath, Vice-President of Hedged.in, said:Nifty is trading near the upper Bollinger band, indicating strength in the move upside. “The index has support at the 25200 level and resistance at the 25900 level. The smaller time frame momentum indicators are sloping upside, indicating a further rally from the current levels. The Keltner channel upper band level is placed at 25430, which can act as an immediate bounce level in case of a move down,” he said.
The derivative market also signals a lacklustre pattern, experts said.
Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities, said: The 25,600 strike continues to witness the highest call open interest, with 1.29 crore contracts, establishing it as the key hurdle in the near term. On the downside, the 25,500 put strike has garnered significant open interest of 1.16 crore contracts, reinforcing it as a solid support level.
“The Put-Call Ratio (PCR) saw a marginal uptick from 0.64 to 0.74, which still reflects a bearish bias owing to active call writing at higher levels. Meanwhile, the Max Pain point has adjusted to 25,500, suggesting this level may act as a magnetic pull as the weekly expiry approaches,” he added. India VIX declined by 2.01%, closing at 12.52, and continues to trade below the psychological 15 mark. “This subdued reading reflects a low-volatility environment, signalling market participants’ confidence and reduced fear, conditions that generally support a steady upward grind in the index,” he further said, adding that despite lacklustre momentum and falling volumes, the index appears slightly over-extended from its 10-day EMA, indicating a healthy time-wise correction rather than any bearish reversal.
Following a mixed close in the US markets overnight, Asian stocks are also sending mixed signals. While the Nikkei, China, Korea and Taiwan markets are down, Hong Kong and Australian stocks eked out marginal gains in early deals on Wednesday.
Published on July 2, 2025
