Gift Nifty indicates a flat opening for domestic markets as the Q1 financial performance of some India Inc companies was underwhelming. With a lack of global triggers, analysts expect stock specific action to continue. 

Ajit Mishra – SVP, Research, Religare Broking Ltd, said: Global uncertainty and a muted start to the earnings season are weighing on investor sentiment. However, sustained liquidity inflows are helping to cushion the downside. “This is clearly evident in the current market environment, where a divergent trend is visible —while the benchmark index is under pressure, due mainly to weakness in heavyweight IT stocks,” he said. Rate-sensitive sectors such as auto, realty, and select banking, along with continued interest in defensives like FMCG and pharma, are not only limiting the losses, but also offering ample long-side trading opportunities, he added. “We recommend aligning positions accordingly, with a focus on stock selection and risk management, as the current market tone is likely to persist,” he added.

Global stocks also show a mixed trend. Most Asian stocks are ruling mixed. Meanwhile, F&O trading indicates a cautious trend.

Hardik Matalia, Derivative Analyst, Choice Broking, said: India VIX edged up slightly by 0.02% to 11.2425, suggesting stable volatility, with a mildly cautious undertone in the market. “On the derivatives front, the highest Call Open Interest (OI) for Nifty is seen at the 25,200 strike, followed by 25,300, indicating potential resistance at higher levels. On the Put side, the highest OI is placed at 25,100, followed by 25,000, suggesting immediate support zones. This OI configuration highlights the 25,000–25,300 range as a crucial zone for Nifty’s near-term directional move,” he said.

Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities, said: The overall derivatives set-up continues to reflect a bearish undertone. Call writers are strongly entrenched, particularly at the 25,200 strike, which now holds the highest open interest at 57.57 lakh contracts — cementing it as a key resistance level. “In contrast, put writers remain cautious, implying low conviction in a near-term rally. The 25,000 strike, however, has accumulated a healthy put open interest of 34.01 lakh contracts, marking it as a critical support. The Put-Call Ratio (PCR) has slipped from 0.80 to 0.69, signalling aggressive call writing and a declining bullish bias. The relatively low PCR reading reinforces the negative sentiment prevailing in the market. Furthermore, the Max Pain point has nudged down to 25,150, suggesting a high likelihood of expiry around this level, in line with the ongoing sideways movement,” he added.

India VIX remained virtually unchanged, slipping marginally by 0.02% to settle at 11.24, staying well below the crucial 13 threshold, he further added. “The prolonged low volatility environment indicates that while bears are active on rallies, there is no evident panic or fear-driven selling. This suggests the current phase is one of measured consolidation rather than capitulation,” Dhamma said.

Published on July 18, 2025