Sensex, Nifty poised for flat open; key levels to track on July 28

After a prolonged period of sideways movement, this close below the 25,000 level reinforces the dominance of bears and suggests limited upside potential in the near term.

Benchmark indices Nifty and Sensex are likely to kickstart the session on a muted note as trade deal worries continue to keep investors on edge. While a truce has been reached between the US-EU and the US-Japan, a deal with India is taking longer than initially anticipated.

At about 7:55 am, GIFT Nifty was trading at 24,849, marginally lower by 5 points.

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On Friday, July 25, bears took firm control of Dalal Street, dragging the Nifty 50 and Sensex deep into the red. Selling in heavyweight financial stocks intensified the pressure on benchmark indices.

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

After a prolonged period of sideways movement, this close below the 25,000 level reinforces the dominance of bears and suggests limited upside potential in the near term. The tone for early next week remains negative as put writers are likely to continue repositioning at lower levels. Index has convincingly slipped below its 50-day Exponential Moving Average (EMA), currently placed at 24,950, which had previously offered strong support. This level will now act as immediate resistance. A sustained close below 24,800 could further accelerate the selling momentum, dragging the index toward the 24,600–24,500 zone.

“From a technical standpoint, the Bank Nifty index closed below its 20-day Exponential Moving Average (EMA) situated at 56,800, a level that previously acted as a crucial cushion. Post breakdown, this level will now serve as the immediate resistance”, Dhupesh Dhameja of SAMCO Securities said. “A continued move below the 56,500 mark may intensify bearish momentum and potentially trigger a slide towards the 56,100–56,000 support band. With resistances gradually shifting lower, the earlier support zone of 57,000–56,800 has now turned into a supply zone”, he added.

India VIX rose 5.15 percent, closing at 11.27. Despite the uptick, the index remains well below the 13 mark, indicating a lack of panic and confirming that current selling is methodical rather than fear-driven. The low volatility environment suggests that while intraday declines persist, long-term investors are not yet exiting in a hurry.

The Put-Call Ratio (PCR) declined from 0.76 to 0.58, underscoring increased call writing activity and a tilt in favour of bears. This realignment of positions by both call and put writers reflects a defensive and cautious undertone in the market.

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