Market Wrap

Indian equity markets delivered a strong performance during the week ended 3 August 2025, with the Nifty 50 rising 2.59% to close at 24,383, marking its highest weekly close in the last seven weeks. The benchmark index opened the week on a firm note with a gap-up and maintained positive momentum throughout the week as sustained buying interest outweighed intermittent bouts of profit booking. The rally reflected a noticeable improvement in investor sentiment following recent market volatility.

Although the Bank Nifty lagged the broader market, the financial sector continued to provide meaningful support. Financial Services stocks remained resilient, led by robust gains in Bajaj Finance and Bajaj Finserv, highlighting continued institutional preference for high-quality financial businesses with strong earnings visibility.

Global markets also contributed to the positive sentiment. Wall Street extended its gains, encouraging buying across Asian and European equities. Investors continued to evaluate the implications of the latest U.S. tariff announcements and ongoing global trade negotiations, while growing expectations of monetary policy easing by major central banks supported overall risk appetite. The combination of supportive international cues, resilient domestic participation, and selective sectoral leadership helped restore market confidence and drive the week's recovery.

What's Ahead

Investor attention in the coming week is expected to remain focused on corporate earnings, foreign institutional investor (FII) activity, and major global macroeconomic events. Quarterly results from key index heavyweights will be closely tracked for signs of sustained earnings momentum, while U.S. labour market data and any fresh developments surrounding global trade policies and tariffs could influence global risk sentiment and cross-border capital flows.

Should corporate earnings continue to exceed expectations and international markets remain supportive, the Nifty may attempt to extend its ongoing recovery. However, market volatility is likely to remain elevated around major economic releases and policy-related announcements, making stock-specific opportunities and earnings-driven moves the primary focus for investors.

Market Snapshots

Institutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The Nifty 50 continues to exhibit a positive technical structure after registering its fifth consecutive session of gains, indicating sustained buying interest following the recent correction. Momentum indicators remain supportive, with the RSI improving to 57.66, while the Put-Call Ratio (PCR) of 1.14 reflects a balanced-to-positive derivatives setup. As long as the index sustains above the crucial support zone of 24,150–24,200, the broader recovery is expected to remain intact, with the immediate upside target placed around 24,450–24,500. A decisive breakout above this resistance zone could accelerate bullish momentum, while a breach below support may invite renewed selling pressure. For the next trading session, the outlook remains Sideways to Bullish, with an expected trading range of 24,200–24,550.

BankNifty

Bank Nifty remained in a consolidation phase, ending marginally lower after recovering sharply from intraday lows, reflecting strong buying interest around the 56,800–57,000 region. Technically, the index formed a pin bar-like candlestick near the 50-day Exponential Moving Average (EMA), highlighting the emergence of demand at lower levels despite intermittent profit booking. While the index still needs to overcome immediate resistance to confirm stronger upward momentum, the overall technical setup remains constructive as long as it holds above the 56,950–57,050 support zone. A sustained move above 57,450–57,550 could trigger fresh buying and extend the ongoing recovery. Accordingly, the near-term outlook for Bank Nifty remains Sideways to Bullish, with an expected trading range of 56,950–57,550.

Sensex

The Sensex continues to maintain a favourable technical bias, extending its winning streak as buying interest in financial, auto, and select heavyweight stocks outweighed profit booking in the IT sector. The index has established a strong support base in the 77,700–77,600 zone, and holding above this range is likely to preserve the prevailing bullish structure. On the upside, the immediate resistance lies between 78,400–78,500, where a sustained breakout could pave the way for a rally towards 78,800–79,000. Although intermittent volatility cannot be ruled out due to profit booking at higher levels, improving market breadth and continued strength in broader markets support the positive undertone. The near-term outlook therefore remains Sideways to Bullish, with the expected trading range placed between 77,700 and 78,500.