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Market Closing Commentary

Indian benchmark indices ended largely flat on 28 July as investors adopted a cautious approach amid mixed global cues and monthly Expiry. The market opened on a muted note, tracking weakness across Asian markets following selling pressure in semiconductor-related stocks, and remained largely range-bound throughout the session with stock-specific action dominating trade. At close, the Sensex declined 69.86 points or 0.09% to settle at 76,765.92, while the Nifty 50 slipped 10.60 points or 0.04% to close at 23,985.35.

On the sectoral front, performance remained mixed. Nifty IT emerged as the top-performing sector, rising 3.2%, followed by Nifty Realty, which gained 2.0%, and Nifty Consumer Durables, up 1.08. Nifty Auto also ended higher with gains of 0.69%, while Nifty Pharma added 0.20%. Most other sectoral indices traded with a mixed bias, reflecting the absence of a broad market trend. The broader market also delivered a mixed performance. The Nifty Midcap 100 index edged up 0.10%, while the Nifty Smallcap 100 index declined 0.20%, indicating selective buying in midcaps alongside mild profit booking in small cap stocks.

Nifty Outlook

Nifty on the monthly expiry session traded in a range and closed on a flat note. Index has formed a high wave candle with a higher high and a higher low signaling consolidation amid stock specific action around the 24,000 levels. Going forward, a decisive move above Tuesday's high of 24,041 would confirm renewed buying momentum and could pave the way for an up move towards the 24,170–24,250 zone in the coming sessions. Failure to surpass this level is likely to keep the index in a consolidation phase.

On the downside, a breach below Monday's gap area (23,823–23,891) would signal weakening momentum and could trigger a corrective move towards the 23,500–23,600 support zone. This area is significant as it represents the confluence of the trendline support connecting the April and June 2026 lows, the bullish gap formed on 15 June 2026, and the 61.8% Fibonacci retracement of the recent up move from 23,070 to 24,530.

Bank Nifty Outlook

Bank Nifty formed a bearish candle on the daily chart and closed below Monday's gap-up area, indicating a lack of follow-through buying and relative underperformance compared to the benchmark index. A decisive breach below the 100-day EMA, currently placed at 56,660, could accelerate the decline towards the 56,000-56,200 level, which coincides with the previous week's low and 52 weeks EMA. On the upside, 57,050 remains the immediate resistance, marked by Tuesday's high. A sustained move above this level would signal renewed buying momentum and could pave the way for an up move towards the 57,500 zone

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. On the downside key support is placed at the 56,000-56,200 levels. 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.

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