The domestic stock market snapped its recent losing streak during the week as softer crude oil prices, easing geopolitical tensions, encouraging first-quarter FY27 corporate earnings and renewed foreign institutional investor (FII) inflows lifted sentiment.
The decline in crude oil prices from recent highs helped ease concerns over imported inflation, corporate profitability and India’s external account, providing additional support to equities. Backed by these factors, the benchmark indices recovered a significant portion of the previous week’s losses.
The Nifty surged 2.59 per cent to close at 24,383.60, while the Sensex gained 2.68 per cent to settle at 78,094.64. Both indices also registered their second consecutive monthly gain in July.
On the technical front for the Sensex, analysts noted that the index mirrored the broader market recovery by reclaiming the 78,000 mark as improving earnings sentiment boosted investor confidence.
“The 78,300–78,500 zone remains the immediate resistance for the Sensex. A sustained breakout above this range could propel the index towards the 79,000–79,200 levels,” an analyst said.
On the downside, the 77,700–77,500 zone is expected to provide immediate support, followed by the crucial psychological level of 77,000. Holding above these levels would keep the technical structure intact, while a breach below 77,000 could invite fresh selling pressure, experts noted.
For the Nifty, market participants observed that the benchmark has reclaimed its 200-day exponential moving average (EMA), while the Relative Strength Index (RSI) has strengthened to 59, signalling improving momentum.
“The immediate resistance for the Nifty is placed in the 24,550–24,600 zone. A sustained move above this hurdle could pave the way for a rally towards the 24,850 mark,” a market expert stated.
The combination of supportive global cues, particularly the easing in crude prices, and domestic factors such as better-than-feared quarterly earnings has helped restore some risk appetite among investors. Renewed FII participation has further aided the rebound after a period of outflows.
Analysts cautioned that while the near-term bias remains constructive, the indices will need to clear the identified resistance zones convincingly for the next leg of the rally to materialise. Failure to sustain above key support levels could lead to consolidation or renewed pressure.
Overall, the week’s recovery has improved the technical setup for both the Sensex and Nifty. Market participants will closely watch global cues, crude oil price movements and the continuity of foreign fund flows in the coming sessions to gauge whether the positive momentum can be extended towards the higher targets outlined by analysts.
