Broader indices outperformed, with Nifty Midcap and Smallcap rising over 0.8% and 1% respectively. Despite continued FII outflows and looming global risks, investor sentiment improved.
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Markets staged a strong recovery on Tuesday, with benchmark indices snapping a three-day losing streak as the Nifty 50 gained 140.20 points or 0.57 per cent to close at 24,821.10, while the Sensex surged 446.93 points or 0.55 per cent to settle at 81,337.95.
The recovery was particularly notable as the Nifty formed a bullish engulfing candlestick pattern on the daily chart after finding support near its 100-day exponential moving average (EMA). The index opened with a gap down at 24,609.65 compared to the previous close of 24,680.90, but rebounded sharply from intraday lows of 80,575.45 for the Sensex.
“The benchmark Nifty index has formed a Bullish Engulfing candlestick pattern on the daily chart — a strong price action signal that typically suggests a potential reversal in trend,” said Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities. “What makes this development more significant is that the pattern has emerged near the 100-day EMA, a key dynamic support level closely watched by market participants.”
Jio Financial Services emerged as the top gainer on the Nifty 50, surging 4.77 per cent to close at ₹322.00, followed by Reliance Industries which gained 2.09 per cent to ₹1,416.60. Asian Paints rose 1.97 per cent to ₹2,406.10, while Larsen & Toubro advanced 1.92 per cent to ₹3,488.00. Eicher Motors topped the gainers’ list with a 1.74 per cent increase to ₹5,479.50.
On the losing side, SBI Life led the decliners with a 0.93 per cent drop to ₹1,833.20, while Axis Bank fell 0.80 per cent to ₹1,065.00. Tata Consultancy Services declined 0.72 per cent to ₹3,057.00, HDFC Life dropped 0.62 per cent to ₹756.50, and ITC slipped 0.41 per cent to ₹408.20.
Market breadth positive, mid & smallcaps shine
Market breadth was positive with 2,482 stocks advancing against 1,521 declines out of 4,157 stocks traded on the BSE. A total of 118 stocks reached 52-week highs, while 93 stocks touched 52-week lows. Eleven stocks were in the upper circuit while nine hit the lower circuit.
The broader market outperformed the frontline indices significantly. The Nifty Midcap 100 gained 0.81 per cent to 57,984.85, while the Nifty Smallcap 100 advanced 1.03 per cent. Among sectoral indices, Nifty Realty and Nifty Pharma were the top performers.
“The positive close on this day can be attributed to a combination of sector-specific strength and improved investor sentiment despite ongoing concerns over trade negotiations and foreign institutional investor outflows,” said Vaibhav Vidwani, Research Analyst at Bonanza Group.
Currency and commodity markets react to global cues
The currency market saw the rupee weakening by 0.14 to 86.80 against the dollar, down 0.16 per cent, as the dollar index climbed near the 99 mark. “With the 1st August U.S. trade deal deadline approaching and key U.S. data—ADP Non-Farm Employment, Non-Farm Payrolls, Unemployment Rate, GDP, and the Federal Reserve’s policy statement—all lined up this week, the forex market is expected to remain highly volatile,” said Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities.
In commodities, gold prices traded higher at ₹97,900 with gains of ₹350, while Comex gold rose 0.30 per cent to $3,325 amid the ongoing two-day U.S. Federal Reserve policy meeting. “Gold is likely to move within the range of ₹97,000–₹98,650 in the near term,” Trivedi added.
Derivatives show confidence, but global risks linger
The derivatives market showed reduced volatility with India VIX dropping 4.46 per cent to 11.5250, indicating improved trader confidence. In the options segment, the highest Call open interest for Nifty was at the 25,000 and 25,200 strike prices, while Put open interest was concentrated at the 24,800 strike.
“Amidst lingering uncertainties over the ongoing U.S.–India trade negotiations, the domestic equity market staged a modest recovery from intraday lows,” said Vinod Nair, Head of Research at Geojit Investments Limited. “Investor sentiment remains cautious ahead of key global events, including policy decisions from the U.S. Fed and the August 1 reciprocal tariff deadline.”
Looking ahead, analysts expect the market to remain volatile with key resistance levels at 24,930-24,950 for the Nifty. “Going ahead, the zone of 24700–24670 will serve as the immediate support for the index. On the upside, the resistance zone of 24930–24950 will act as a critical hurdle,” Shah noted. The upcoming derivatives expiry and global developments, particularly the U.S. Federal Reserve’s policy decision and the August 1 trade deadline, are expected to influence market direction in the near term.
Published on July 29, 2025