Sensex, Nifty likely to open flat as investors await Q1 earnings, US trade deal clarity

India VIX eased by 2.09 percent, closing at 11.94, remaining well below its psychological threshold of 15.

Benchmark indices Nifty and Sensex are expected to open largely flat on Thursday as consolidation continues, with investors adopting a wait-and-watch approach ahead of the Q1 earnings season and a potential trade deal between India and the US. At approximately 7:50 a.m., the Gift Nifty was trading at 25,555, up 0.1 percent.

In the previous session, the equity benchmark indices closed lower as investors turned cautious ahead of the start of the earnings season and the expected trade deal announcement between India and the United States, with selling pressure seen in IT and oil & gas stocks.

Both Foreign Institutional Investors (FII/FPI) and Domestic Institutional Investors (DII) were net buyers on July 9, with FIIs buying shares worth Rs 77 crore while domestic institutional investors (DII) were net buyers of shares worth Rs 920 crore.

As long as the index holds above 25,350, the bullish undertone is expected to strengthen. However, a sustained close above the 25,500 mark will be vital to establish a clear directional bias in the next session. On the downside, the 25,300–25,400 zone has emerged as a critical support area, where the index has repeatedly found buying interest. A decisive close above 25,550 backed by strong buying could reinvigorate bullish momentum and open the door toward the psychological barrier of 26,000.

"A strong move above Tuesday’s high of 57,303 for the Bank Nifty would validate bullish sentiment and pave the way for further upside traction. Importantly, the index did not witness any major breakdown, underscoring the strength of buyers holding their ground," Dhupesh Dhameja of SAMCO Securities said. Onn the downside, the zone between 56,800–57,000 remains a key demand area, where the index has repeatedly bounced and found firm footing, he added.

India VIX eased by 2.09 percent, closing at 11.94, remaining well below its psychological threshold of 15. The continued low volatility environment indicates subdued fear in the market, typically favouring a gradual and steady uptrend over sharp directional swings.

The Put-Call Ratio (PCR) has slipped sharply to 0.70 from 0.93, signalling increased bearish bias due to heightened call writing.