Market Wrap

Indian equities extended gains with the Nifty rising 0.42%, settling just below the 25,000 mark, supported by broad-based strength and a strong midcap rally. Auto stocks outperformed on speculation of a potential GST rate cut, while consumption-driven themes also saw strong buying. Globally, US and Asian markets ended mixed, but European indices opened higher amid optimism over a possible Russia–Ukraine ceasefire. Domestically, government discussions on GST reforms lifted sentiment, while stronger-than-expected July export growth from China added to optimism around global trade momentum.

What's Ahead

Going forward, market direction will likely depend on further clarity around India’s GST reform roadmap, which could act as a catalyst for consumption and Auto names. Improving Chinese export data may provide tailwinds for Metals and IT, though investors will remain cautious over geopolitical risks tied to the Russia–Ukraine conflict, which could sway foreign flows and risk appetite.

Market Snapshots

Institutional Activity

Sectoral Performance

Technical Outlook

Nifty

The Nifty 50 closed 103.7 points higher at 24,980.65, registering a 0.42% gain as resilience in autos, financials, and Reliance lifted the index. After a muted start, intraday momentum picked up, supported by expectations of GST reforms and easing geopolitical risks. On the technical front, Nifty’s RSI has edged into the low-50s, reflecting strengthening momentum after recent consolidation. The index now faces immediate resistance at 25,142 and 25,242, while near-term support lies at 24,819 and 24,719. Sustaining above the 25,000 mark could open the door for further upside, but profit booking near resistance cannot be ruled out.

Bank Nifty

The Bank Nifty ended 130.25 points higher at 55,865.15, marking a modest 0.23% gain. The index recovered smartly from intraday lows, though heavyweight HDFC Bank capped broader gains. Technical indicators show the RSI moving into the 50s, pointing to improving momentum, though the sector still lacks strong directional conviction. Immediate support is seen at 55,511 and 55,292, while resistance stands at 56,219 and 56,438. A breakout above 56,200 could trigger a stronger rally, whereas sustained trade below 55,500 may invite further consolidation.

Sensex

The Sensex climbed 370.64 points to close at 81,644.39, rising 0.46% on the back of gains in Reliance, Tata Motors, and other auto names. Positive market breadth supported the upmove despite weakness in HDFC Bank, L&T, and Bajaj Finance. From a technical perspective, the index remains in a short-term uptrend, with RSI showing improving strength. Key support levels are placed at 80,960 and 80,600, while resistance is likely around 81,952 and 82,350. Sustaining above 81,900 would strengthen bullish momentum, while dips toward support could attract buying interest.

FINNIFTY

The Nifty Financial Services index slipped 16.8 points to settle at 26,592.3, down 0.06%, as weakness in HDFC Bank and insurers offset gains in Kotak Bank and LIC Housing. Despite the marginal decline, the advance-decline ratio was positive, hinting at underlying strength. Technically, the index is hovering near its consolidation zone, with RSI showing a neutral reading. Immediate support levels are at 26,448 and 26,288, while resistance lies at 26,748 and 26,908. A breakout on either side could dictate the next directional move, with banking majors likely to play a key role.