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Below the Quote on Pre-market comment for Tuesday July 28 by Sachin Gupta, VP - Technical Research, Choice Equity Broking 

Indian equity markets are expected to witness a cautious start on Tuesday, with GIFT Nifty trading around 24,005, down 37 points, indicating a slightly weak opening despite the positive undertone in domestic markets. US markets finished mixed while crude oil prices plunged sharply. Crude Oil dropped to $80.99 a barrel, this drop happened because the US and Iran paused their military strikes.

Nifty 50 staged a strong recovery on Monday, ending the session at 23,995.95, up 228.50 points (+0.96%), as buying interest followed the recent correction. The index opened with a gap-up at 23,928 and maintained a positive bias throughout the session. After consolidating during the opening hour, Nifty found strong support near the 23,900 mark, attracting fresh buying momentum and gradually extending gains to an intraday high of 24,011 before settling close to the day's high. The session reflected improving market sentiment, with sustained buying at lower levels and a strong close near the crucial 24,000 mark.

From a technical perspective, Nifty has reclaimed and closed above its 50-day Exponential Moving Average (EMA), indicating improving short-term momentum after the recent corrective phase. The RSI improved to 49.55, reflecting strengthening momentum and signalling a gradual recovery in market strength. The PCR stood at 1.13, indicating a balanced-to-positive derivatives setup. Option chain data shows strong Put Open Interest at the 23,900 and 24,000 strikes, establishing immediate support, while significant Call Open Interest at the 24,100 and 24,200 strikes is expected to cap the upside. India VIX declined sharply by 9.76% to 12.66, highlighting easing volatility and improving investor confidence. As long as the index sustains above the 23,800–23,850 support zone, Nifty is expected to trade within the 23,800–24,150 range, with the overall bias remaining Sideways to Bullish.

Bank Nifty opened at 57,116 with a gap-up and witnessed mild profit booking during the early part of the session. Despite the initial weakness, the index remained resilient and spent most of the day consolidating around the 57,000 mark, indicating a healthy balance between buyers and sellers. It touched an intraday high of 57,330 and a low of 56,928 before settling at 57,087.20, gaining 393.70 points (+0.69%). The price action suggested healthy consolidation following the recent rebound, with traders awaiting a fresh trigger for the next directional move.

Institutional flows remained mixed, with Domestic Institutional Investors (DIIs) remaining net buyers worth ?2,329 crore, while Foreign Institutional Investors (FIIs) continued their selling streak with net outflows of ?1,688 crore. Continued domestic buying is helping offset foreign selling and supporting the broader market sentiment.

Monday's rally was led by Nifty IT, Nifty Media, Nifty Realty, Nifty Midcap 150, and Nifty Financial Services, reflecting broad-based buying across technology, real estate, and financial stocks. Buying interest was also visible in Auto, Pharma, Healthcare, and Chemicals, indicating improving market breadth and strengthening risk appetite.

Overall, the technical setup continues to improve as Nifty reclaims its 50-day EMA while volatility eases, indicating growing confidence among market participants. Although mixed global cues may result in a cautious opening, the domestic market remains well-supported by positive technical indicators and sustained institutional buying. Traders may continue to adopt a buy-on-dips strategy, while closely monitoring the 23,800 support and 24,150 resistance levels for the next directional move.

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