Market Commentary (closing) for 31st July 2026 by Bajaj Broking
Market Closing Commentary
Indian benchmark indices opened on a positive note and extended their gains throughout the session, supported by broad-based buying across sectors. Stable crude oil prices and easing geopolitical concerns improved investor sentiment, helping the benchmark indices sustain their momentum and trade comfortably above key support levels. At close, the Nifty 50 gained 0.27% to settle at 24,383, while the Sensex advanced 0.21% to close at 78,094.
On the sectoral front, Nifty Media and Auto emerged as the top-performing sectors, with additional support from Financial Services, which helped drive the benchmark indices higher. On the other hand, Nifty FMCG and IT remained the key laggards, witnessing mild profit booking during the session. The broader market also participated in the rally. The Nifty Midcap 100 index gained 0.44%, while the Nifty Smallcap 100 index also advanced 0.44%, indicating healthy participation beyond the large-cap space.
Nifty Outlook
Nifty traded in a range with positive bias and closed around the 24,400 levels. Index formed a high wave candle with a higher high and higher low signaling continuation of the positive bias. The index in the process on the weekly chart formed a bullish candle with a higher high and a higher low highlighting strength.
Index bias remains positive and dips should be used as a buying opportunity for up move towards the short-term resistance area of 24,500-24,600 being the confluence of the high of July and April 2026. A breakout above the same will signal a breakout above 3 months consolidation range and open fresh leg of up move towards the 24,800 and 25,000 levels in the coming weeks. On the downside immediate support is placed at 24,100-24,200 levels. While key short-term support is placed at 24,000-23,800 levels being the confluence of 50 days EMA, last Monday’s gap area and rising trendline support joining previous major lows.
Bank Nifty Outlook
Bank Nifty formed a third consecutive high wave candle with a higher high and a higher low signaling consolidation amid stock specific action around the 57,000 levels. 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.
A decisive move above Wednesday's high and the 57,500 mark could trigger fresh buying momentum, paving the way for an advance towards 58,000 and 58,500, which coincides with the upper band of the last 6 weeks consolidation. However, failure to surpass 57,500 levels is likely to keep the index range-bound between 56,500–57,500. On the downside, the 56,500–56,000 zone remains a crucial support area. This region is reinforced by the confluence of the lower band of the six-week trading range, an ascending trendline, and the 52-week EMA, making it a strong demand zone. As long as the index holds above this support cluster, the broader outlook is expected to remain constructive.
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