Market Commentary (closing) for 27th July 2026 by Bajaj Broking Ltd
Market Closing Commentary
Indian benchmark indices ended sharply higher on 27 July, snapping a five-session losing streak, supported by broad-based buying across sectors amid easing geopolitical tensions and a sharp decline in crude oil prices. A pause in military strikes between the US and Iran boosted investor sentiment, helping the market open on a strong note with the Nifty reclaiming the 23,900 level. Although the benchmarks traded in a narrow range for most of the session, strong buying in the final hour lifted the Nifty back towards the 24,000 marks, enabling the indices to close near their day's highs.
At close, the Sensex gained 776.01 points or 1.02% to settle at 76,835.78, while the Nifty 50 advanced 228.50 points or 0.96% to close at 23,995.95. On the sectoral front, Nifty Media emerged as the top-performing sector, rising 2.4%, followed by Nifty IT, which gained 2.3%. Nifty Realty climbed 2.2%, while Auto and Pharma advanced 1.6% and 1.5%, respectively. Among the other sectors, FMCG gained 1.0%, Bank Nifty rose 0.7%, and Infrastructure added 0.66%, reflecting broad-based buying across the market. The broader market also ended firmly in positive territory, broadly in line with the benchmark indices. The Nifty Midcap 100 index gained 1.0%, while the Nifty Small cap 100 index advanced 1.3%, indicating healthy participation across the broader market.
Nifty Outlook
Nifty snapped its five-session losing streak, closing nearly 1% higher on Monday. Index has formed a bullish candle with a higher high and a higher low and a bullish gap below its base (23823-23891) signaling buying demand from the trendline support joining previous major lows of April and June 2026. Volatility is likely to be high in tomorrow session on account of the monthly F&O expiry. Sustaining above Monday’s gap area (23823-23891) will keep the pull back trend intact and will open upside towards 24,100 and 24,170 levels in the coming sessions.
Going ahead, formation of higher high and higher low on a sustained basis and holding above 24,000 levels will signal pull back towards 24,300- 24,350 levels in the coming sessions. On the downside a move below Monday’s gap area (23823-23891) will signal weakness and open downside towards the key support area of 23,500-23,600 being the confluence of the trendline support joining lows of April and June 2026, bullish gap area of 15th June 2026 and 61.8% retracement of the recent up move from 23,070-24,530.
Bank Nifty Outlook
Bank Nifty formed a doji candle with a higher high and a higher low and a bullish gap below its base (56831- 56928) signaling positive follow through to previous session bullish piercing line candle as index closed above the 50 days EMA. Bank Nifty in the last 6 weeks is seen consolidating in the range of 56,500-58,700. Within the consolidation immediate hurdle is placed at 57,500 levels while the upper band of the recent consolidation placed around 58,500-58,700 will act as a stiff hurdle for the index in the coming weeks.
On the downside key support is placed at the 56,500-56,000 levels being the confluence of the lower band of the last 6 weeks range and a rising trendline support and 52 weeks EMA. A breach below the same will lead to acceleration of decline towards 55,000 levels being the confluence of the trendline support joining previous major lows and the 61.8% retracement of the previous up move from 53,027-58,706. Structurally the index has already taken 4 weeks to retrace just 38.2% of the preceding up move from 53,027 to 58,706. A shallow retracement signals overall positive bias and a higher base formation in the current corrective decline
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