Nifty Slips for 2nd Week: Consolidation Ahead amid Rising VIX

Indian markets ended lower for the second straight week, weighed down by persistent foreign fund outflows, mixed corporate earnings, and cautious global cues.

Nifty slipped nearly 0.8% to close at 25,490, while India VIX rose over 3% to 12.55, reflecting a slight uptick in market volatility.

Key Levels to Watch

Nifty is currently retesting the apex of its ascending triangle breakout, around the 25,300–25,400 zone. This area is supported by significant put writing, as reflected in recent open interest data, making it an important near-term support.

Below this, the next strong support lies near 25,000.

On the upside, the 25,700–25,800 zone could act as an immediate resistance due to heavy call writing, while 26,000 remains a major resistance level to watch.

Outlook

Given the current setup, markets are likely to trade within a neutral range in the coming week. Volatility may stay elevated as global uncertainties, FII outflows, and a busy flow of economic and earnings data continue to influence sentiment.

While near-term sentiment remains cautious, strong domestic macro fundamentals and steady corporate performance are expected to provide underlying support to the broader trend.

Traders are advised to stay stock-specific, focusing on banking and financials—particularly PSU banks—which continue to display relative strength.