Indian stock markets are expected to start Thursday, July 10, 2025, on a sluggish note, mirroring mixed cues from global markets. Trends on the Gift Nifty also suggest a muted opening for the Indian benchmark index.

Global Market Cues

• Mixed Global Sentiment: European markets closed higher, while U.S. futures are trading in the green, providing supportive global cues that may limit downside pressure.
• Asian Markets: Asian markets traded mixed. Japan's Nikkei 225 gained 0.33%, and the Topix index rose 0.17%. South Korea's Kospi index was flat, while the Kosdaq added 0.29%. Hong Kong's Hang Seng index indicated a stronger open.
• US Markets: The US stock market ended mixed as investors awaited clarity on US trade policy. The Dow Jones Industrial Average fell 0.37%, while the S&P 500 eased 0.07%. The Nasdaq Composite closed 0.03% higher.

Key Levels to Watch

• Sensex: Shrikant Chouhan from Kotak Securities believes that the current market texture is non-directional, with traders waiting for a breakout on either side. For bulls, the breakout zone is 83,800, above which the Sensex could rally to 84,000-84,400. On the flip side, a breach of 83,350 could accelerate selling pressure, potentially dragging the index to 83,000-82,900. Near term support and resistance levels are at 82885/82482 and 84187/84590.
• Nifty 50: Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, expects positive market sentiment as long as the Nifty 50 index remains above 25,300 to 25,250 levels. The index faces a hurdle at 25,550, and a break above this level could lead to 25,700 and 26,200. Near term support and resistance levels are at 25267/25138 and 25685/25814.

Derivatives Data

• Nifty 50: Nifty open interest (OI) data indicates the highest call writing at the 25,500 and 25,600 strike prices, suggesting strong resistance around 25,500. The maximum put OI was seen at the 25,400 level.

Market Sentiment and Outlook

• Cautious Optimism: Overall sentiment remains cautiously optimistic.
• Subdued Start: Gift Nifty is down 0.28%, signaling a possibly soft start for Indian equities.
• Global uncertainties: Despite prevailing global uncertainties, the Nifty opened on a flat note. The index continued to trade within a narrow range, reflecting a sideways trajectory throughout the session.

Other important factors

• FII Outflows: FII outflows may weigh on sentiment.
• Earnings Season: Stock-specific moves are likely to take center stage as the earnings season progresses.
• IPO Market: Over ₹35,000 Cr in IPOs are set to hit Indian markets in H2 2025. 71 companies have already received SEBI approval, and another 77 are awaiting clearance, signaling a strong pipeline of upcoming listings.
• Equity Mutual Funds: Equity mutual funds witnessed a healthy recovery in June, with net inflows rising 24% month-on-month.

Trading Recommendations

• Analysts at Axis Securities have suggested a Bull Call Spread strategy for Nifty options contracts expiring on July 10, 2025, reflecting a moderately bullish outlook.

Yesterday's Market Performance (July 9, 2025)

• The Indian stock markets closed lower after a volatile session amid selling in IT and metal stocks.
• The Sensex settled at 83,536.08, down 176.43 points or 0.21%.
• The Nifty fell 46.40 points or 0.18% to end the session at 25,476.10.
• Top gainers in the Sensex basket included Bajaj Finance, Power Grid, Hindustan Unilever, Asian Paints, Mahindra and Mahindra, ITC, NTPC, and HDFC Bank. Top losers included Axis Bank, Reliance, Tata Motors, Titan, Infosys, Bharti Airtel, TCS, and HCL Tech.
• Sector-wise, strength was observed in consumer goods, automobiles, consumption, and financial services, while weakness persisted in metals, realty, and IT stocks.