Stock Market Outlook July 9: Nifty Near Breakout Zone, Sensex Volatile on US Tariff Deadline Call & Trade Talk

The Indian stock market is poised for a flat opening with GIFT Nifty trading at 25,537, up by 10 points. This suggests a slight positive or neutral start. Global markets are showing mixed trends with Wall Street futures down and Asian markets closing with varied results. Investors are keeping an eye on the US tariff deadline on July 9 and the potential for an interim US-India trade agreement.

Stock Market Latest Update

In the previous session, Nifty closed at 25,461, gaining 55 points. The index faces resistance between 25,650 and 25,670. A strong breakout above this range could lead to levels of 25,800 to 26,000. An intraday move above 25,510 might boost momentum upwards, while a dip below 25,400 could signal short-term weakness.

Market Sentiment and Trading Strategies

FIIs have been net sellers for six consecutive days, selling Rs 760 crore recently. DIIs also sold Rs 1,028 crore in the last session. This selling trend may affect market confidence. However, holding above the 25,000 mark is crucial for maintaining bullish sentiment. A buy-on-dip strategy could be viable if institutional flows remain supportive.

The BSE Sensex opened slightly lower by 31.57 points at 84,027.33 on June 30, 2025. Meanwhile, the Nifty 50 started marginally higher at 25,661.65 with a gain of 23.85 points. In contrast to the previous session's close of Sensex at 84,058.90 and Nifty at 25,637.80.

Global Market Influence

Globally, optimism prevails as U.S. markets continue reaching record highs. Reduced geopolitical tensions in the Middle East and a significant drop in crude oil prices to around USD 67 are contributing positively to equities worldwide.

Gift Nifty indicated a slightly weaker start for domestic markets by opening at 25,754 compared to its previous close of 25,781.50. Across Asia, Japan's Nikkei surged over 600 points while Hong Kong's Hang Seng fell by 0.42%. South Korea's Kospi and China's Shanghai Composite traded positively.

Sector-wise Nifty Performance

Most Nifty indices were trading positively early in the session; Nifty Metal rose by 0.23%, and Nifty Pharma increased by 0.30%. However, Nifty IT was slightly negative with a decline of just 0.01% during early trading hours.

Nifty is currently within a broken descending channel on the four-hour chart sustaining above the level of 25,500 could build momentum towards reaching the range of up to approximately 26,000.

For long-term investors and short-term traders alike considering quality investments at these levels may yield strong returns over time due to attractive valuations present within current market conditions.

The Bank Nifty opened higher at approximately around its new high point reflecting strength within banking sectors domestically amidst mixed global signals indicating cautious optimism among investors worldwide regarding potential trade progress between major economies globally impacting overall sentiment positively across various sectors domestically too.

Mr. Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd, "Indian equities ended marginally higher on Tuesday, with the Nifty50 closing at 25,522, up 61 points or 0.24%. Broader indices underperformed, as the Nifty Midcap100 and Smallcap100 declined 0.2% and 0.3%, respectively. Markets remained subdued through most of the session but saw a late recovery amid reports that the long-awaited mini trade deal between India and the US may be announced today."

Textile Stock Outlook: "Textile stocks rose after the US imposed a 35% tariff on Bangladesh, boosting expectations of incremental export orders for Indian players. AMC stocks gained after SEBI proposed easing norms around mutual fund operations, allowing management of non-broad-based pooled funds without a PMS licence under stricter oversight. Overall, markets are expected to remain optimistic in the near term, supported by hopes of a trade breakthrough and the upcoming earnings season."