Dalal Street saw another flat start in trade on Friday, July 4, as the equity benchmarks Nifty 50 and Sensex continued their consolidation phase.

At 09:30 a.m., the Sensex was up 73.73 points or 0.09 percent at 83,313.20, and the Nifty was up 17.60 points or 0.07 percent at 25,422.90. About 1898 shares advanced, 879 shares declined, and 136 shares unchanged.

The market sentiment is mildly indecisive, according to experts, following a cautious close in the previous trading session. Sectoral indices on the NSE were trading mixed, with modest moves across the board.

Nifty FMCG led the gains, rising 0.4 percent, followed by Nifty Media up 0.5 percent and Nifty Realty, which added 0.3 percent. Nifty PSU Bank, Nifty Infra, and Nifty Pharma also posted mild gains in early trade. On the other hand, Nifty Auto and Nifty Metal saw marginal losses, slipping 0.2 percent, respectively.

The sentiment in the broader markets was slightly more positive, with the Nifty Midcap 100 and Nifty Smallcap 100 rising around 0.1 percent each.

Jane Street barred from Indian securities

India’s market regulator has barred Jane Street Group from participating in the country’s securities market, delivering a significant blow to the US-based trading firm, which earned over $2.3 billion in net revenue from equity derivatives in India last year.

According to an order published on its website, the Securities and Exchange Board of India (SEBI) has ordered the seizure of Rs 4,840 crore (approximately $570 million), alleging that the amount represents the fund’s unlawful gains.

This sparked a sharp sell-off in capital market stocks, such as Nuvama Wealth Management and BSE.

Institutional flows

Foreign institutional investors (FIIs) turned net sellers on July 3, offloading Indian equities worth Rs 1,481 crore. Domestic institutional investors (DIIs), meanwhile, provided a cushion by buying Rs 1,333 crore worth of shares, according to provisional data from the NSE.

Global markets

Asian shares traded in a tight range Friday as renewed trade tensions ahead of next week’s deadline for higher levies outweighed a record-extending rally in US stocks.

Wall Street rallied on Thursday to record closing highs, as chipmaker Nvidia rose closer to a $4 trillion valuation and a surprisingly strong US jobs report cheered investors, who shrugged off dimming chances for an interest rate cut this month.

The S&P 500 and Nasdaq closed at record highs, notching a third week of gains. The Dow closed only 0.41 percent away from its own record.

The S&P 500 gained 0.83 percent, the Nasdaq Composite rose 1.02 percent. The Dow Jones Industrial Average rose 0.77 percent.

Technical levels

For day traders, 25,500 is a crucial levels to watch. As long as the market trades below these levels, the weak sentiment is likely to continue. "On the downside, the market can slip towards 25,300-25,200, if it breaks the level of 25,370. On the upside, above 25,500, we can see an intraday bounce towards 25,600. A successful breakout of the 25,600 resistance zone can push the market towards 25,670.

Options outlook

In the options space, sentiment has turned slightly defensive, with call writers becoming increasingly aggressive at higher levels—highlighting rising supply. On the other hand, put writers have begun scaling back their positions, pointing to expectations of a range-bound to mildly corrective setup.

"The 25,500 call strike continues to command the highest open interest, with 64.88 lakh contracts, cementing it as a key resistance zone. On the flip side, the 25,000 put strike carries 54.20 lakh contracts, confirming its status as an important support base," said Dhupesh Dhameja of SAMCO Securities.

Strategy for traders

In the current environment of heightened volatility and mixed cues, traders are advised to adopt a cautious "buy-on-dips" strategy, especially when trading with leverage. Booking partial profits during rallies and using tight trailing stop-losses will help manage risk effectively.

"Fresh long positions should be considered only if the Nifty sustains above the 25,600 level. While the broader market sentiment remains cautiously bullish, it is crucial to monitor key technical levels and evolving global cues closely," said Hardik Matalia, Derivative Analyst, Choice Broking.