- Indian equity benchmarks rose for the third consecutive day on Friday, led by auto and pharma stocks
- Nifty is expected to maintain a positive bias supported by strong Q1FY27 earnings and healthy domestic macros
- Immediate resistance for Nifty is at 24,500-24,550, with a breakout possibly pushing it towards 24,700
Indian equity benchmarks ended the last session of July on a higher note, extending their streak into the third consecutive day on Friday. Analysts are expecting the bias to remain positive for Nifty, as stock specific action amid earnings drive momentum.
"Indian equities are expected to trade with a positive bias as healthy domestic macros, and a strong Q1FY27 earnings season continue to support investor confidence," stated Siddhartha Khemka, head of research, wealth management, at Motilal Oswal Financial Services.
Traders will react to India's Manufacturing and Services Purchasing Managers' Index (PMI) data, along with developments in crude oil prices and geopolitical tensions in West Asia in the coming days.
Accordingly, the 24,500-24,550 zone will likely act as the immediate resistance for the Nifty index. A successful breakout of 24,550 could push the market towards 24,700.
On the flipside, 24,000 will act as the key support zone, below which the uptrend will become vulnerable, according to Amol Athawale, vice president of technical research at Kotak Securities. He advised, "traders may consider exiting long positions if the market falls below this level".
Nifty Bank
The Nifty Bank index is facing indecision and non-directional activity, with traders likely waiting for a breakout at either end. On the upside, the 200-day SMA or 57,500 would be the immediate resistance zone. Sustaining above this can lead to an upmove towards 58,000-58,500.
"On the downside, the 50-day SMA (around 56,600) acts as a key support level. Below this, selling pressure may accelerate, and the index could retest levels of 56,000-55,800," Athawale from Kotak Securities highlighted.
Market Recap
Indian equity benchmarks extended their gains in noon trade on Friday after a muted start, led by buying in auto and pharma stocks. At the last count, the BSE Sensex was up 304 points, or 0.4%, at 78,236, while the NSE Nifty50 gained 99.85 points, or 0.41%, to trade at 24,417.00.
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