Market Wrap

Indian equity markets began the new monthly derivatives series on a positive note, with benchmark indices witnessing strong buying interest throughout the session. The Nifty opened with a gap-up and maintained its upward momentum, closing near the day's high at around 24,250, gaining 1.10%. The rally was broad-based, although mild profit booking emerged during the final hour of trade.

The technology sector remained the standout performer, with the Nifty IT Index climbing to a nine-week high as investors positioned themselves ahead of the next wave of first-quarter earnings from major IT companies. Strong participation across sectors reflected improving investor sentiment, while corporate earnings continued to dominate domestic market direction.

Global markets traded in a narrow range as investors refrained from taking aggressive positions ahead of the US Federal Reserve's monetary policy decision and earnings from leading US technology companies. Meanwhile, optimism surrounding ongoing US trade negotiations and the August 1 tariff deadline provided some support to global risk sentiment.

Overall, the market continues to shift toward a stock-specific environment, with company earnings, management commentary, and sector-specific developments emerging as the key drivers of investor decisions.

What's Ahead

Market participants will closely monitor the outcome of the US Federal Reserve's policy meeting and its commentary for cues on the future interest rate trajectory. Domestically, the ongoing Q1 earnings season will remain the primary focus, with strong corporate results likely to support the current recovery while weaker-than-expected earnings could trigger volatility.

Investors will also watch foreign institutional investor (FII) flows and any fresh developments related to US trade policy ahead of the August 1 tariff deadline, as these factors are expected to influence market sentiment in the near term.

Market Snapshots

Institutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The Nifty 50 extended its winning streak for the fourth consecutive session, closing 1.10% higher at 24,250.20 and forming a strong bullish candle on the daily chart, reflecting sustained buying interest. The index continues to trade below its 200-day Exponential Moving Average (EMA), indicating that the broader trend is yet to fully turn positive, while the Relative Strength Index (RSI) has improved to 56.11, signalling strengthening bullish momentum. Derivative indicators also remained supportive, with the Put-Call Ratio (PCR) at 1.13 and India VIX declining 4.42% to 12.00, reflecting easing volatility and improving investor confidence. Broad market participation remained healthy, led by strength in small-cap stocks, while IT, Metal, and Financial Services outperformed. As long as the index holds above the 24,000–24,100 support zone, the near-term outlook remains Sideways to Bullish, with an expected trading range of 24,000–24,400. Immediate resistance is placed at 24,350–24,400, and a decisive breakout above this zone could extend the ongoing recovery.

BankNifty

Bank Nifty gained 0.79% to close at 57,205.90, supported by steady buying after finding strong support near the 57,000 level. Although the index maintained a constructive undertone, it continued to face resistance around its 20-day EMA, while the small upper wick on the daily candle suggests selling pressure at higher levels. The overall technical structure remains Sideways to Bullish, provided the index sustains above the crucial 56,500–56,800 support zone. On the upside, 57,600–57,800 remains the key resistance area, and a sustained move above this range could trigger fresh buying momentum. Until such a breakout occurs, the index is likely to trade within the 56,500–57,800 range with a buy-on-dips approach remaining favourable.

Sensex

The Sensex rallied 888.68 points, or 1.16%, to settle at 77,654.60, reflecting broad-based buying across key sectors and strengthening market sentiment. Technically, the index witnessed a strong rebound after taking support near its 100-day EMA, while the hourly chart showed a positive moving average crossover, with the 20-period EMA moving above the 50, 100, and 200-period EMAs, indicating improving short-term momentum. Sectoral leadership from IT and Metal stocks further reinforced the positive market structure, although Power and Oil & Gas witnessed mild consolidation. As long as the Sensex remains above the 77,000–77,200 support zone, the near-term outlook is expected to remain Sideways to Bullish, with the index likely to trade within the 77,000–78,500 range. A sustained breakout above 78,200–78,500 could pave the way for further upside momentum in the coming sessions.