Nifty, Sensex likely to see further consolidation, pharma in focus; key levels to watch on July 9

Nifty and Sensex are likely to extend their range-bound movement on July 9.

Dalal Street likely to see another sideways session, with the benchmark indices Nifty 50 and Sensex constricted to a tight range on Wednesday, July 9, as investors choose to wait for fresh triggers before taking new positions.

At 7.50 a.m., the GIFT Nifty index is trading with mild losses of 10 points or 0.04 percent at 25,593.

In the previous session, the mainlines saw a spurt in the last hour of trade, after seeing more rangebound trade through the day, following optimism on a mini trade deal between India and U.S. However, Donald Trump has also said that Washington D.C. would soon make an announcement on pharmaceuticals, broadening the slate of sector-specific levies to around 200 percent.

Foreign Portfolio Investors (FPIs) net sold Rs 26 crore in Indian equities while domestic institutional investors (DIIs) net bought Rs 1,367 crore, according to provisional data on NSE.

On the daily chart, a strong bullish candle has been formed, indicating a potential continuation of the upward momentum. For the uptrend to sustain, the index needs to move decisively above the immediate resistance of 25,600, with a stronger hurdle placed near the 25,800 level.

"On the downside, immediate support is seen at 25,500, followed by 25,400, while a stronger support zone lies near the 25,300 mark," said Hardik Matalia, Derivative Analyst, Choice Broking.

Meanwhile, India VIX declined by 2.91% to 12.1950, indicating reduced market volatility and reflecting a relatively stable sentiment among traders. In the derivatives segment, open interest (OI) data showed the highest Call OI at the 25,600 strike, followed by 25,700, suggesting a potential resistance zone. On the Put side, the highest OI was seen at the 25,500 strike, followed by 25,400, indicating strong support levels. This OI setup suggests that the 25,400–25,600 zone will be crucial for Nifty's next directional move.