Domestic markets are likely to see profit-taking and remain in consolidation mode. Analysts expect another lacklustre day ahead of Q1 results from India Inc that will kick in from next week. Gift Nifty at 25,585 signals, that the market may open in the negative zone.
The market remains in a wait-and-watch mode, with key events on the global front likely to drive near-term direction, said Sundar Kewat, Technical and Derivatives Analyst, Ashika Institutional Equity. Markets are in a cautious mood, buffeted by US tariff uncertainty and Fed policy readability, said Vikram Kasat, Head – Advisory, PL Capital.“Domestic strength remains limited to select themes — metals, durables, and fresh IPO gains,” he further said.
According to Dhupesh Dhameja, Derivatives Analyst, SAMCO Securities, in the derivatives segment, sentiment has shifted slightly, with call writers asserting dominance at higher levels — suggesting growing supply pressure. Meanwhile, put writers have begun trimming their positions at current strikes, signalling expectations of a potential sideways to mildly corrective phase.
“The 25,600 strike continues to hold the highest call open interest, with 1.73 crore contracts, making it a critical resistance point in the near term. On the support side, the 25,000 put strike has amassed a significant open interest of 1.06 crore contracts, underlining its importance as a strong base. The Put-Call Ratio (PCR) slipped from 0.74 to 0.61, highlighting a slightly bearish bias driven by aggressive call writing at higher strikes,” he added.
However, India VIX eased by 0.66% to close at 12.44, remaining well below the psychological 15 mark. “The sustained low volatility reflects investor confidence and a diminished sense of fear — an environment that typically supports a steady, upward grind in the index,” he further said.
Meanwhile, equities across the Asia-Pacific region are down marginally in early deals on Thursday.
Published on July 3, 2025
