Dalal Street might be set for an open in the green on Tuesday, July 22, extending gains from the previous session, echoing favourable global cues.
Overnight, the broad-based key Wall Street index S&P 500 notched a record closing high, spurring investor optimism. Further, Asian stocks rallied, with Japanese markets staging a relief rally after Prime Minister Shigeru Ishiba said he would carry on as leader even after the ruling coalition lost its majority in the upper house election.
At 7.35 a.m., the GIFT Nifty index was trading higher by a 100 points or 0.4 percent at 25,185.
In the previous session, the frontline indices Nifty 50 and Sensex settled on a strong note, breaking their two-day losing streak as renewed buying in heavyweight stocks like HDFC Bank, Eternal, and ICICI Bank lifted sentiment despite lingering concerns over trade tariffs.
On July 21, Foreign Portfolio Investors (FPIs) were net sellers to the tune of Rs 1,681 crore worth of shares in Indian equities, while domestic institutional investors (DIIs) net bought Rs 3,578 crore worth of shares, according to provisional NSE data.
Here are the key levels to watch out for in today's session
On the daily chart, the price action in the previous session not only confirms a bounce from a key support, but also emphasizes the importance of the 24,900–25,000 range in determining the next directional move. "Despite this recovery, the index continues to trade below its short-term 10-day and 20-day EMAs, both clustered near the 25,200 level, highlighting sustained supply pressure from higher zones," said Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities.
On the institutional front, Foreign Portfolio Investors (FPIs) continue to hold their bearish stance in index futures, with no meaningful sign of long buildup. The Long-Short ratio has now dipped into oversold territory, suggesting the possibility of a short-covering rally in the coming sessions.
India VIX declined modestly by 1.67 percent, closing at 11.20, still well below the psychologically significant 13 level. This persistently low volatility signals that while bears remain active during intraday rallies, there is no sign of panic selling.
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