Stock Market July 28: Key Nifty Levels to Watch for Bullish Trend
- Nifty closed above 25,000 for the first time, gaining 0.6% on July 27.
- Key support for July 28 is at 24,850; resistance at 25,200.
- Bank Nifty closed at 52,300, with support at 51,800 and resistance at 52,700.
Markets End at Fresh Highs
Indian equity benchmarks closed at record highs on Monday, July 27, with the Nifty 50 breaching the 25,000 mark for the first time. The index settled at 25,045, up 150 points or 0.6 percent. The Sensex also gained over 500 points to end at 82,300.
The rally was led by banking and IT stocks. Market breadth was positive, with more than two stocks advancing for every one that declined on the BSE. Foreign institutional investors remained net buyers, pumping in over Rs 1,200 crore in the cash segment.
What to Watch on July 28
Traders are now asking if the momentum can sustain. Analysts point to the Nifty's immediate support at 24,850, a level that held during intraday dips on Monday. On the upside, resistance is seen at 25,200.
A close above 25,200 could open the door for a move towards 25,500 in the coming sessions. However, any break below 24,850 may trigger profit booking. The 50-day simple moving average, currently at 24,600, is a strong floor.
Bank Nifty and Other Sectors
The Bank Nifty ended at 52,300, up 0.8 percent. Key support for the banking index is at 51,800, while resistance is at 52,700. If the index crosses 52,700, it could target 53,200.
IT stocks, which have been under pressure, saw a mild bounce. The Nifty IT index gained 0.3 percent. Metal and auto stocks also contributed to the rally, with the Nifty Auto index closing 0.7 percent higher.
Global Cues and Derivatives Data
Asian markets were mixed on Monday, with Japan's Nikkei closing flat while China's Shanghai Composite gained 0.4 percent. US futures pointed to a flat open later in the day. Oil prices remained stable around $78 per barrel.
In the derivatives segment, Nifty futures saw a build-up of long positions. The put-call ratio stood at 1.35, indicating bullish sentiment. Open interest concentration was highest at the 25,000 and 25,200 call strikes, and at 24,800 and 24,900 put strikes.
Volatility, as measured by India VIX, fell 2 percent to 12.5, suggesting lower anxiety among traders.
What Traders Should Do
Analysts advise a 'buy on dips' strategy as long as the Nifty holds above 24,850. Traders can consider long positions with a stop loss below 24,800. On the upside, 25,200 is the first target, followed by 25,400.
For Bank Nifty, a move above 52,700 is bullish. Traders are watching the weekly expiry on Thursday for directional cues.
Market participants will also track the outcome of the US Federal Reserve meeting later this week. Any hawkish signals could impact global liquidity and emerging markets like India.