Indian equity markets were trading with a mild positive bias on Friday, with the BSE Sensex around 78,000 and the NSE Nifty 50 near 24,350 in morning trade. The benchmarks were holding close to their recent highs as strong buying in financial and auto stocks helped offset a sharp fall in IT shares. Key factors such as positive global cues and fresh foreign buying also supported sentiment, although investors remained cautious ahead of more quarterly earnings and key technical resistance levels. 

1. Strong Buying in Financial Stocks

Financial stocks are among the biggest supports for the market today. The Nifty Financial Services index was up about 1%, helped by strong buying in non-bank financial companies. Bajaj Finance jumped around 7% after its June-quarter profit beat market expectations. The company’s strong loan growth and higher profit have increased confidence in the financial sector and helped limit the impact of weakness in other heavyweight stocks.

2. Auto Stocks Gain on Strong Quarterly Results

The auto sector is also supporting today’s market. Mahindra & Mahindra rose around 2.5% after reporting a 7% year-on-year rise in standalone profit for the June quarter. Investors were encouraged by the company’s results and continued demand outlook. Hyundai Motor India also gained sharply after brokerages raised their earnings expectations, adding further strength to the auto index. 

3. IT Stocks Take a Breather After a Strong Rally

IT shares are the biggest drag on today’s market. The Nifty IT index fell about 2.3% after gaining strongly over the previous five sessions. Investors are booking some profits after the sector’s sharp July rally. Even with today’s decline, the IT index is still up around 16% this month, which would make July its strongest monthly gain in six years.

4. Positive Global Cues Support Investor Confidence

Global markets are providing a supportive background for Indian equities. US stocks ended higher on Thursday, helped by strong results and outlook from Microsoft, while Asian markets also opened higher. South Korea’s KOSPI jumped sharply as semiconductor stocks recovered after their recent fall. The improvement in global risk appetite has helped Indian investors stay positive despite some sector-specific selling. 

5. Foreign Buying and Softer Crude Oil Provide Support

Foreign investors have returned to Indian equities after several months of outflows, adding support to the market. The rupee has also strengthened this week, helped by RBI intervention and softer crude oil prices. Brent crude has continued to fall in Asian trading, easing some pressure on India’s import bill and inflation outlook. These factors are helping the market absorb the weakness in IT stocks. 

Key Technical Analysis

Sensex Technical Outlook

The Sensex is holding near the 78,000 mark and remains in a positive short-term structure after its recent recovery. Immediate resistance is placed around 78,300–78,600, while support is seen near 77,400–77,500. The index needs a sustained move above 78,600 to build stronger upside momentum. Until then, some consolidation around current levels is likely, especially after the recent gains.

Nifty 50 Technical Outlook

The Nifty 50 is trading around 24,350 and continues to form higher highs and higher lows on the daily chart. Immediate resistance is placed around 24,500–24,600, while support has moved higher to 24,150–24,200. The short-term bias remains positive as long as the index holds above 24,150. A decisive breakout above 24,600 could open the door for another leg higher. 

Bank Nifty Technical Outlook

Bank Nifty remains relatively strong, supported by buying in financial stocks and particularly Bajaj Finance. The index is expected to find support around 56,500–56,700, while resistance is placed near 57,400–57,500. The technical setup remains positive as long as the index holds above its support zone. A sustained breakout above 57,500 could improve momentum and attract further buying in banking stocks.

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