Sensex Jumps 400 Points, Nifty Closes Above 24,800 as Market Rebounds – What Moved the Market to End in Green?

The Indian stock market closed with gains today, on July 29, bouncing back after witnessing huge fall for 3 straight days. marginal fall, buoyed by strong performance in certain sectors and better investor mood, even though there are still worries about trade talks and foreign investor selling.

The Sensex rose by 446.93 points, or 0.55%, to close at 81,337.95, while the Nifty 50 went up by 140.20 points, or 0.57%, to settle at 24,821.10. The rally was supported by broad-based buying across all sectors, especially in Realty and Pharma stocks.

Top Gainers And Losers:

Top Nifty gainers were Jio Finance, Reliance, Asain Paints, L&T, Eitcher Motors, Tata Steel and Apollo Hospitals with Jio Finance rising 4.7% alone.

While, SBI Life, Axis Bank, TCS, HDFC Life, ITC, Titan, Eternal and ICICI Bank were the top losers of the day.

Almost all the sectors ended in green, with metal, pharma, and realty leading the gains, while IT, financials, and FMCG lagged due to weak quarterly results.

Broader market recovered sharply today, with both the Nifty Midcap 100 and Smallcap 100 indices outperforming the benchmark. The Nifty Midcap 100 Index rose 0.81%, while the Nifty Smallcap 100 Index gained 1.03%.

Market sentient remained positive, with 2,490 stocks advancing, 1,518 declining, and 147 unchanged on the BSE from 4,155 traded stocks. The advance-decline ratio on the BSE stood at 1.66, marking its highest level in more than a month.

What Caused the Market to Rise Today?

"Amidst lingering uncertainties over the ongoing U.S.-India trade negotiations, the domestic equity market staged a modest recovery from intraday lows. Investor sentiment remains cautious ahead of key global events, including policy decisions from the U.S. Fed and the August 1 reciprocal tariff deadline.

"Sustenance of this rally is likely to be positive in the near term with an eye on the above details, including Q1 results and this week's monthly expiry. For the Nifty50 index, 25,000 to 25,100 is likely to act as a restriction at the upper end," said Vinod Nair, Head of Research, Geojit Investments.

Technical Outlook for Nifty:

"Nifty formed a bullish engulfing pattern on the daily chart, suggesting the possibility of a meaningful bullish reversal. On the 2-hourly chart, the index has started a recovery supported by a positive divergence. In addition, a hidden positive divergence is visible on the daily chart, further indicating the potential for a smart recovery in the short term.

On the higher side, Nifty may move towards 24,950-25,000. A decisive move above 25,000 could trigger a rally towards 25,200. On the downside, support is placed at 24,750," said Rupak De, Senior Technical Analyst at LKP Securities.

"The Nifty's close near the day's high resulted in a bullish "Engulfing" candlestick pattern on the daily chart. Consequently, today's low of 24598 now establishes itself as a new support level for the Nifty. In the short term, 24882 and 25000 are seen as crucial hurdles on the upside," said Nandish Shah - Deputy Vice President, HDFC Securities.

Rupee VS Dollar:

The Indian rupee ended 15 paise lower at 86.82 against the US dollar, its weakest closing level since March 13.

"The Indian Rupee has experienced considerable weakness in recent days and today's it remains the weakest among Asian currencies. The primary catalysts for this decline are consistent dollar demand from the importers and a continued exodus of foreign capital.

On the technical front, the spot USD/INR has immediate resistance at 86.65 and a significant support at 85.80," said Dilip Parmar, Research Analyst, HDFC Securities.

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