Sensex, Nifty set for weak open amid mixed global cues; key levels to track on July 29

India VIX jumped 6.98 percent to 12.06, extending its rally for a second session with a two-day gain of 11 percent.

Sensex and Nifty are set to extend their losing streak on July 29, as global jitters and disappointing earnings weigh on sentiment. US markets ended mixed after a strong start, while Asian peers slipped. The GIFT Nifty was down 40 points at 24,665 around 7:45 pm, signalling a weak open.

Bears dragged Dalal Street deep into the red, while selling pressure in key financial stocks also contributed to heavy losses in the Nifty 50 and Sensex indices, on Friday, July 25. All sectoral indices, barring pharma and healthcare, sank deep into the red.

Follow our LIVE blog for all the latest market updates

On July 28, Foreign Portfolio Investors (FPIs) were net sellers to the tune of Rs 6,082 crore worth of shares in Indian equities, while domestic institutional investors (DIIs) net bought Rs 6765 crore worth of shares, according to provisional NSE data. This is the highest net selling by FIIs since May 30 and the highest net buying by DIIs since June 17.

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

The index has decisively broken down from its prolonged consolidation phase, violating multiple support levels and confirming a bearish shift in the near-term structure. If the Nifty breaches 24,650 on a closing basis, we may witness accelerated unwinding, pushing the index further down toward the 24,500–24,450 band.

On the upside, the resistance zone has now migrated downward to 24,960–25,000, and any attempted relief rally toward this band may face renewed supply pressure. Until the index reclaims and sustains above 25,000, the broader bias will firmly remain negative, and rallies may be used to initiate fresh shorts rather than as signs of reversal The ongoing breakdown clearly signals a shift in sentiment, and it’s crucial for traders to remain aligned with the prevailing trend.

"The current week brings elevated event-risk with the FOMC meeting and updates on US trade tariff policies looming large. Against this backdrop, the index decisively slipped below its 50-Day exponential moving average, currently anchored near 56,110, which had repeatedly served as a key cushion in recent declines—its violation has further aggravated market jitters. A decisive break and close beneath the 56,000 handle would likely escalate selling intensity, potentially dragging the benchmark toward the 55,500–55,450 zone in the short run," Dhupesh Dhameja of SAMCO Securities said.

The India VIX spiked by 6.98 percent, closing at 12.06, continuing its upward journey for the second straight session—marking a cumulative 11 percent rise in just two days. This suggests that participants are bracing for heightened volatility in light of key global cues. That said, VIX remains below the 13 mark, indicating that long-term investors are not exiting en masse.

The Put-Call Ratio (PCR) slipped further from 0.65 to 0.59, reflecting increased call exposure and a tilt in favor of bears. However, the falling PCR is approaching oversold territory, warranting close observation as it may signal short-term exhaustion. This reallocation of positioning by both option writers suggests that traders are bracing for additional downside but are also staying agile amid an event-driven week.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.