Sensex, Nifty Weekly Forecast July 28- Aug 1: Bearish Momentum Builds as Stock Market Faces Key Support Tests

Indian equities ended the previous week on a weak note, with both the Sensex and Nifty 50 slipping below important support zones, weighed down by subdued global cues, mixed earnings and profit booking in key sectors.

The upcoming week from July 28 to August 1, 2025, is expected to be highly eventful, as markets watch for signs of a reversal or further continuation of the current bearish trend. The broader sentiment remains cautious as technical indicators suggest further downside risk, though oversold signals across oscillators hint at a possible near-term bounce.

Nifty 50 Prediction From July 28 to Aug 1st: Critical Test of Supports Amid Bearish Short-Term Trend

Nifty ended lower for the second consecutive day, declining 225 points to close below 25k mark at 24,837 (-0.9%). Financial stocks, particularly Bajaj Finance, led the sell-off due to concerns over asset quality. Global uncertainties, lack of progress in India-US trade negotiations, and continuous selling by foreign investors further contributed to the market's negative performance.

The broader market underperformed significantly with Nifty Midcap100 and Smallcap100 falling by 1.6% and 2.2% respectively. Pharma and Healthcare indices showed resilience, closing higher by 0.6-0.7% each, amid a broad based sectoral sell-off. In a positive development, the India-UK free trade agreement (FTA) was signed in the presence of PM Narendra Modi and UK PM Keir Starmer.

The trade deal which was agreed upon in May this year, aims to enhance bilateral trade to $120 billion by 2030, effectively doubling the current trade volume between both nations. On the macro front, the European Central Bank kept interest rates unchanged, but flagged downside risks to growth in the Eurozone.

"Overall, we expect market to remain in consolidation mode amid continued uncertainty around India-US trade deal, a mixed Q1FY26 earnings season so far and intensifying FII outflows. Key results over the weekend include Kotak Mahindra bank, Macrotech Developers, CDSL amongst others," according to daily market commentary by Mr. Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services Ltd.

Sensex Prediction This Week: Cautious Sentiment Prevails as Index Tests Support Zones

The BSE Sensex, too, showed signs of strain, closing below the 82,000-mark as sectoral weakness dragged the index lower. Like the Nifty, the Sensex is also facing overhead supply near resistance levels of 82,500 to 83,800, with downside support now emerging at 81,400 to 80,750. If these levels are breached, it may accelerate the downtrend toward 80,000, though any signs of stabilization at support could provide a much-needed breather to bulls.

Jyoti Prakash, Managing Partner, Equity & PMS at AlphaaMoney said, "Market sentiment is down due to worse than expected earnings for the June quarter, lack of FPI buying, MFs diverting funds towards fresh equity offerings and uncertainties surrounding Indo-US tariff agreement."

The index witnessed persistent selling pressure across energy, auto, and metal stocks, which were among the worst-performing sectors last week. Notably, FMCG and IT sectors displayed relative strength, indicating a potential defensive shift by investors. With earnings season ongoing and mixed results reported so far, sentiment remains highly sensitive to stock-specific news. The overall trend for the Sensex remains cautious unless the broader market exhibits a decisive turnaround above resistance levels.

Traders are advised to adopt a sell-on-rise approach near resistance levels and wait for a clear breakout above 57,630 to consider fresh long positions. Patience and disciplined risk management will be key in navigating this uncertain phase.

Disclaimer

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