Indian stock market: The Indian stock market witnessed a robust recovery during the week, ending their recent losing streak as softer crude oil prices, easing geopolitical tensions, upbeat Q1 FY27 earnings, and a return of foreign institutional investor (FII) inflows boosted investor sentiment. The decline in crude oil prices from recent peaks eased concerns over imported inflation, corporate profitability, and India’s external account.
Supported by these factors, the benchmark indices rebounded sharply, recovering much of the losses recorded in the previous week. The Nifty climbed 2.59% to end at 24,383.60, while the Sensex rose 2.68% to settle at 78,094.64, with both indices registering their second straight monthly gain in July.
Stock market outlook for next week
According to Vinod Nair, Head of Research, Geojit Investments Limited, looking ahead, the sustainability of the domestic market recovery will depend on the easing of global uncertainties, stability in crude oil prices, and a broadening of earnings growth beyond a handful of sectors.
“Investors will closely track US labour market data in the coming week, while domestically, the RBI’s policy decision and PMI releases will provide key cues on growth and inflation trends. We continue to favour a gradual accumulation of quality companies with strong earnings visibility,” said Nair.
Stock market trading strategy
Ajit Mishra – SVP, Research, Religare Broking, believes that the market has staged a healthy recovery, supported by resilient domestic fundamentals, encouraging earnings across select sectors, easing geopolitical concerns, and improving global risk sentiment. Nevertheless, the fragile nature of the US–Iran truce, potential volatility in crude oil prices, and the upcoming RBI monetary policy decision warrant a balanced approach.
“Investors and traders should focus on identifying fundamentally strong stocks and sector leaders rather than adopting a broad-based approach. Maintaining disciplined position sizing and prudent risk management will remain essential amid the possibility of sharp moves driven by policy announcements, earnings outcomes, and global developments,” Mishra said.
Key technical levels to watch out for next week –
Sensex
On the Sensex outlook, Ponmudi R, CEO – Enrich Money, said that the index mirrored the broader recovery, reclaiming the 78,000 mark as improving earnings sentiment supported investor confidence. From a technical standpoint, the 78,300–78,500 zone remains the immediate resistance. A sustained breakout above this band could support a move towards the 79,000–79,200 region.
“On the downside, the 77,700–77,500 zone is expected to provide immediate support, followed by the 77,000 psychological mark. Holding above these levels will be important to maintain the improving technical structure, while a break below 77,000 could invite renewed selling pressure. Overall, the near-term technical outlook remains constructive,” Ponmudi said.
Nifty 50
On the Nifty 50 outlook, Ravi Singh, Chief Research Officer from Master Capital Services, said that the index has reclaimed its 200-day EMA, while the RSI has strengthened to 59, reflecting improving momentum.
“On the upside, the immediate resistance is placed in the 24,550–24,600 zone. A sustained move above this hurdle could pave the way for a rally towards 24,850. On the downside, the 24,000–24,100 region, which coincides with the 21-day and 55-day EMAs, is expected to act as a strong support zone. As long as the index holds above this level, a buy-on-dips strategy remains the preferred approach,” said Singh.
Bank Nifty
Meanwhile, on the Bank Nifty outlook, Singh further added that index is currently hovering near its 200-day EMA, while on the weekly chart it found strong support exactly at the 21-week EMA around the 56,730 level, reinforcing the medium-term bullish structure.
“As long as Bank Nifty sustains above this crucial support, the broader trend remains positive and a buy-on-dips strategy is favored. On the upside, immediate resistance is placed at 57,800. A decisive breakout above this level could trigger fresh momentum, opening the door for a rally towards the 58,500 mark,” he said.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
