Despite positive cues from Asian markets, analysts expect a cautious tone to prevail, especially in IT stocks. Derivatives data show strong resistance at 25,500, muted investor confidence, and a low volatility regime, signaling a sluggish and indecisive market trend.

Indian benchmark indices, the Sensex and Nifty, are expected to open marginally weak on Friday, amid uncertainties over the US-India trade deal and a weak performance by TCS, IREDA, and Tata Elxsi. Analysts expect the market to move in a downward band during the consolidation phase. The gift Nifty at 25,280 signals a gap-down opening of approximately 150 points for the Nifty.

Following a weak set of numbers from IT bellwether TCS, analysts expect the market to remain cautious, especially the information technology sector, despite positive cues from Asian markets.

According to analysts, corporate results will dictate stock-specific actions. 

“With the earnings season underway, stock-specific opportunities are likely to emerge on both sides, so participants should align their positions accordingly,’ advised Ajit Mishra – SVP, Research, Religare Broking Ltd.

Most Asian stocks are up in early deals on Friday, tracking the strongclose of US stocks overnight. Meanwhile, trading in the derivative segment signals a bearish outlook for the market.

The FIIs’ long-short ratio is hovering near 28%, and the index is witnessing some pressure on upper levels, said Chandan Taparia, Senior Head of Derivatives & Technicals, Wealth Management, Motilal Oswal Financial Services Ltd.

Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities, said: The derivatives landscape reflects a cautious undertone. Call writers are holding firm at higher strikes, particularly at 25,500, which has amassed the highest open interest at 66.13 lakh contracts, solidifying it as a formidable resistance. Conversely, put writers are showing hesitation in taking aggressive bets near current levels, indicating a lack of confidence in immediate upside potential. The Put-Call Ratio (PCR) remained steady at 0.69, underscoring a bearish tilt due to elevated call writing, he said, adding that a low-volatility regime points to muted investor fear and favours a slow, grinding market rather than volatile price swings. However, it also reflects indecision and a lack of strong directional conviction.

The India VIX slipped 2.24% on Thursday to close at 11.67. 

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Published on July 11, 2025