Sensex Gain 373 Points, Nifty at 24,636; Tomorrow Nifty Prediction
Market Outlook: Sensex, Nifty Close Higher in Choppy Session — What to Expect on August 7th
Indian equity benchmarks ended a volatile Thursday session in positive territory, with the Nifty managing to defend the psychologically important 24,600 mark despite persistent two-way swings through the day. The Sensex climbed 373.76 points, or 0.48%, to settle at 78,954.76, while the Nifty added a more modest 11.35 points, or 0.05%, to close at 24,636.
The market breadth told a more nuanced story than the headline numbers suggested. Roughly 2,023 stocks advanced on the day, closely matched by 2,058 that declined, with another 200 ending flat — a sign that gains were concentrated in a handful of heavyweight names rather than broad-based buying across the market.
Winners and Losers
Reliance Industries, State Bank of India, Bharat Electronics, Eternal, and Titan Company were among the standout gainers on the Nifty, lending crucial support to the index even as sentiment elsewhere remained mixed. On the other side of the ledger, Power Grid Corporation, Tata Steel, TCS, JSW Steel, and Bajaj Auto weighed on the index, reflecting profit-booking in sectors that had run up in recent sessions.
The sectoral picture was similarly divided. Nifty PSU Bank was the standout performer, surging 2.2% as public sector lenders continued to attract buying interest. Nifty Oil & Gas followed with a 0.8% gain, benefiting from the broader improvement in sentiment around energy stocks. At the other end, Nifty Media was the worst-hit sector, sliding 1.3%, with Nifty Realty matching that decline. Nifty Auto and Nifty Metal each shed 1%, while Nifty IT slipped 0.9% as investors booked profits after a recent rally in technology counters.
The broader market sent mixed signals too: the Nifty Midcap 100 index eased 0.4%, while the Nifty Smallcap 100 index bucked the trend to gain 0.5%, underscoring continued pockets of strength among smaller companies even as mid-cap names cooled off.
What’s Driving Sentiment
According to Vinod Nair, Head of Research at Geojit Investments, softening crude oil prices combined with diplomatic efforts aimed at reopening the Strait of Hormuz have meaningfully improved overall market sentiment. He noted that the Reserve Bank of India’s stable policy stance, paired with an optimistic outlook on growth, gave investors further reason for selective buying in heavyweight banking and energy stocks.
Nair explained that easing crude prices could help contain inflationary pressures while simultaneously supporting corporate margins — a dynamic that has left investors increasingly optimistic about India Inc.’s earnings trajectory over the coming quarters. This shift in tone has been especially visible in Reliance Industries, which has drawn renewed bargain-hunting interest after a prolonged stretch of underperformance in its oil-to-chemicals (O2C) business. More broadly, markets appear to be refocusing on the long-term value proposition of sectors such as energy, telecom, and retail.
That said, the rally was far from universal. Sectors including auto, metals, IT, real estate, and cement all saw profit-booking during the session. Even so, the broader market held up reasonably well, aided by continued strength in small-cap stocks.
Nifty Technical Outlook
Riyank Arora, Associate Vice President – HNI & Derivatives at Hedge.in, described the session as broadly bullish, with sustained buying in heavyweight stocks helping benchmark indices extend their gains. He pointed out that the Nifty held firmly above key support levels throughout the day, a sign that the underlying bullish structure remains intact.
Per Arora’s assessment, immediate support for the Nifty sits in the 24,500–24,450 band, with a more significant support zone near 24,300. On the upside, resistance is expected around 24,750–24,850. Should the index manage to break decisively above this zone, it could open the door to fresh buying interest and a push toward higher levels.
Arora also flagged that the Sensex saw consistent buying through the session and closed near its intraday high, reinforcing the positive market structure. He placed immediate support for the Sensex at 78,600–78,400, with resistance seen closer to 79,200–79,500. A breakout above that resistance band, he suggested, could pave the way for a fresh rally in the sessions ahead.
Overall, Arora believes the market’s technical setup remains constructive, with both benchmark indices holding above their key support levels. His recommended approach: buy on dips in stocks with strong underlying fundamentals, while keeping disciplined risk management practices in place.
A somewhat more cautious note came from Rupak Dey, Senior Technical Analyst at LKP Securities, who observed that the Nifty largely traded range-bound through the session, leaving many traders uncertain about near-term direction. He noted that the index repeatedly ran into resistance near the previous day’s closing level, and that buying enthusiasm appeared to fade at higher levels as the day progressed.
On the downside, Dey identified the 24,600 mark as a crucial support zone through the session. As long as the Nifty holds above this level, he expects the index to gradually work its way toward 24,800 — and should it sustain above that mark, a fresh rally could take shape.
Echoing a similar technical framework, Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, identified the 24,750–24,780 zone as the key resistance area to watch going forward. A sustained move above 24,780, in his view, could trigger a rally toward 24,900 and subsequently 25,050. On the downside, he pegged the 24,500–24,480 zone as the first line of support for the index.
Bank Nifty Outlook
The banking index also traded in a fairly narrow range on Thursday. According to Shah, Bank Nifty oscillated within a tight 362-point band before ultimately closing above the 58,000 mark with a gain of 0.56%. He noted that the index remains positioned above both its key short-term and long-term moving averages — a technically encouraging sign that points to an intact broader uptrend. That said, momentum indicators are currently reading largely neutral, hinting at a phase of sideways consolidation rather than a clear directional move in the immediate term.
From a levels perspective, Shah flagged the 58,500–58,600 zone as immediate resistance for Bank Nifty. A decisive move beyond 58,600 could trigger fresh buying momentum, potentially opening the path toward 59,100 and then 59,600 over the short term. On the downside, he identified the 290-day exponential moving average zone, around 57,500–57,600, as a strong support cushion for the index.
The Bottom Line
Thursday’s session reflected a market caught between improving macro sentiment — driven by softer crude prices and a stable RBI stance — and lingering caution among traders wary of chasing gains at higher levels. With the Nifty holding above key support and Bank Nifty consolidating near its recent highs, most analysts see the path of least resistance tilted higher, provided the index can clear the resistance zones flagged above. As always, market participants would do well to combine a buy-on-dips approach with careful risk management given the choppy, headline-driven nature of the current environment.
This article is for informational purposes only and does not constitute investment advice. Readers should consult a qualified financial advisor before making investment decisions.
