Mumbai, July 29, 2025: Benchmark indices staged a robust recovery on Tuesday, halting a three-day losing streak, as renewed buying interest in select pockets buoyed overall market sentiment.

The Nifty 50 opened on a tepid note, testing the 24,600 support zone during early trade. However, value buying at lower levels triggered a sharp intraday reversal, with the index gaining traction in the latter half to close near the session high at 24,821, up 140 points, or 0.57%. Broad-based participation was evident, as all sectoral indices ended in positive territory. Nifty Realty, Pharma, and Oil & Gas led the charge, each advancing around 1%, signaling rotational buying across defensives and rate-sensitives. The broader markets outperformed, with the BSE Midcap index climbing 0.8% and the Small cap index adding 1%, reflecting strong risk-on sentiment among market participants.

Nifty Outlook

Index formed a bullish engulfing candle in the daily chart signaling buying demand around the 100 days EMA after three sessions of sharp decline. Going ahead, index is likely to enter a consolidation phase in the range of 24,500-25,000 in the coming sessions. While a move above 25,000 will open further upside towards the last two weeks highs placed at 25,250. Key support is at 24,500–24,400 region being the confluence of the previous swing low, the 100-day EMA, and the 61.8% Fibonacci retracement level of the recent rally from 23,935 to 25,669 — making it a crucial demand zone that could attract buying interest or pause the ongoing correction.

Bank Nifty Outlook

Bank Nifty formed a bull candle as it snapped its three sessions losing streak and closed marginally higher on Tuesday session. The index has recently breached the immediate support zone of 56,200–56,400, which represented a short-term demand base formed by near-identical lows over the past two weeks. Index sustaining below the same will maintain corrective bias and is likely to extend decline towards the 55,500 marks in the near term. The 55,500–55,000 region emerges as a critical support cluster, coinciding with the 100-day EMA and key Fibonacci retracement levels of the prior up move—underscoring it as a high-probability demand zone where buyers may look to re-enter, potentially arresting the ongoing decline.

Attributed to Bajaj Broking Research