IGI Logo

Below the Quote on Pre-market comment for Monday July 27 by Sachin Gupta, VP - Technical Research, Choice Equity Broking 

Indian equity markets are expected to open on a positive note, with GIFT Nifty indicating a gap-up opening of around 125 points at 23,953, supported by firm global cues. Asian markets traded higher following a positive handover from Wall Street, where optimism around corporate earnings and easing concerns over global trade boosted investor sentiment. Meanwhile, Crude oil declined 5.57%, providing a supportive backdrop for Indian equity markets. Despite the encouraging global backdrop, traders are likely to remain selective ahead of key domestic triggers.

The Nifty 50 opened Friday's session at 23,666 with a sharp gap-down amid weak opening sentiment and slipped further to an intraday low of 23,606. However, strong buying interest emerged near the 23,650 zone, coinciding with the unfilled gap created on 15th June, which triggered a sharp intraday recovery. The benchmark erased a significant portion of its losses, climbed to an intraday high of 23,823, and eventually settled at 23,767, down 102 points (-0.43%). Although profit booking capped the recovery near higher levels, the session highlighted the market's resilience as buyers actively defended an important support zone.

From a technical perspective, Nifty formed a bullish recovery candle with a long lower shadow, signalling strong buying interest after the early decline. The rebound from the gap support reinforces the significance of the 23,650–23,700 zone as an important demand area. However, the index continues to trade below its key moving averages, indicating that the broader trend remains under pressure. The RSI slipped to 42.87, reflecting subdued momentum, while India VIX rose 4.12% to 14.03, signalling an increase in market volatility. Immediate support is placed at 23,500–23,550, while 23,950–24,000 remains the immediate resistance zone. For today's session, Nifty is expected to trade within the 23,700–24,100 range, with the overall bias remaining Sideways to Bullish.

Bank Nifty opened at 56,169 on a weak note and extended its losses to an intraday low of 56,023 before witnessing a sharp recovery. Strong buying interest near the 56,000 mark, supported by heavyweight banking stocks, helped the index reverse its early weakness and rally to an intraday high of 56,831. Bank Nifty eventually settled at 56,693, gaining 101 points (+0.18%), reflecting renewed strength in the banking segment after defending a crucial support zone.

Institutional activity remained mixed, with Domestic Institutional Investors (DIIs) extending their buying streak through net purchases of ?5,453 crores, while Foreign Institutional Investors (FIIs) remained net sellers, offloading ?3,892 crores in the cash market. Persistent domestic buying continues to provide stability despite ongoing foreign outflows.

Friday's session witnessed strength in Nifty Media, Nifty IT, Nifty Bank, Nifty PSU Bank, Nifty FMCG, Nifty Metal, and Nifty Midcap IT, indicating selective buying in technology, banking, consumption, and commodity-related stocks. On the other hand, Nifty Auto, Nifty Realty, Nifty Financial Services, Nifty Pharma, Nifty Healthcare, Nifty Consumer Durables, Nifty Oil & Gas, Nifty Chemicals, Nifty Cement, and Nifty REITs remained under pressure, reflecting profit booking across several broader market segments.

Overall the technical setup suggests that the market is attempting to stabilize after successfully defending crucial support levels. Positive global cues and strong domestic institutional buying could support sentiment at the opening, although higher volatility and resistance near the 24,000 zone may limit aggressive upside. Traders should adopt a buy-on-dips approach with a stock-specific focus while closely monitoring 23,700 on the downside and 24,100 on the upside for the next directional move.

Above views are of the author and not of the website kindly read disclaimer