Nifty, Sensex likely to open flat as rangebound trade continues; key levels to track on July 2

India VIX fell by 2.01 percent, settling at 12.52.

Benchmark indices Sensex and Nifty 50 are likely to resume their consolidation phase on Wednesday, July 2, with early cues indicating a flat start. At 7.15 a.m., Gift Nifty futures were up 23 points at 25,679.

In the previous session, Dalal Street saw a choppy session as the consolidation phase kicked in once again, following a smart rally in the previous week. The 30-share Sensex eked out 100 points, while Nifty 50 hovered close to the flatline as investors remained cautious.

In the previous session, Nifty remained confined within the previous session’s trading range, indicating a contraction in volatility and setting the stage for a possible directional breakout in the coming sessions. Importantly, Nifty continues to sustain above its breakout neckline and key support levels—aligned with a previous swing high, underscoring the resilience of the ongoing uptrend.

On July 1, 2025, domestic institutional investors (DIIs) recorded a net buy of Rs 1970 crore, while foreign institutional investors (FIIs) posted a net sell of Rs 771 crore, based on provisional data from the National Stock Exchange.

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Here are the key levels to watch out for in today's session

"Currently, the index is navigating through a supply zone between 25,640 and 25,740—an area that aligns with an unfilled gap and acts as immediate resistance. Conversely, the 25,400–25,300 region has emerged as a robust support band," said Dhupesh Dhameja of SAMCO Securities said.

With the index holding comfortably above its short-term moving averages, the 10-day and 20-Day EMAs, these dynamic support provides additional downside protection. A decisive close above the 25,750 level could reignite bullish momentum and pave the way toward the psychological milestone of 26,000.

The ability of the Nifty to convert prior resistance into fresh support—especially above the 25,000 psychological level—reinforces the underlying bullish sentiment. As long as the index sustains above the 25,300 mark, a ‘buy-on-dips’ strategy remains favourable, Dhameja added.

India VIX declined by 2.01 percent, 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.

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