The Indian stock market extended its winning streak for a third straight session on Friday, July 31, with benchmark indices closing higher despite mixed global signals. According to reports from LiveMint, the Sensex climbed 166 points, or 0.21%, to settle at 78,094.64, while the Nifty 50 advanced 66 points, or 0.27%, to end at 24,383.60. The benchmarks have now gained more than 2% in July, marking their second consecutive month of advances, as stronger-than-expected Q1 earnings continued to underpin investor sentiment. However, market participants remained cautious amid the escalating US-Iran conflict, which is widening across the region with Egypt and Saudi Arabia becoming increasingly drawn into the hostilities.
Sumeet Bagadia, Executive Director at Choice Broking, noted that the index has now closed above the 200 EMA on the daily timeframe, signalling a positive long-term trend confirmation. As reported by LiveMint, the RSI has improved to 59.21, suggesting strengthening bullish momentum without entering overbought territory. India VIX declined 3.29% to 11.75, indicating easing volatility, while the PCR at 1.14 reflects a positive derivatives setup with buyers maintaining control. The immediate support zone is placed at 24,200–24,250, while 24,500–24,550 remains the key resistance area. As long as the index sustains above support, the broader outlook is likely to remain bullish within the 24,200–24,550 range.
According to the Choice expert, Bank Nifty continues to struggle to cross the 20 EMA, with a long upper wick indicating selling pressure emerging at higher levels. As reported by LiveMint, the index remains above its immediate support zone but needs a decisive close above the 20 EMA to strengthen the bullish structure. Support is placed at 56,950–57,050, while 57,450–57,550 remains the key resistance area. The overall bias remains Sideways to Bullish, with the index likely to remain range-bound unless it registers a decisive breakout above the immediate resistance zone.
Regarding stocks to buy on Monday, August 3, Sumeet Bagadia recommended three specific stocks with detailed trading parameters. Reliance Industries is recommended as a buy at ₹1,308 with stop loss at ₹1,249 and target at ₹1,370/₹1,400, having recovered after a sharp correction of nearly 22% from its all-time high. Bharti Airtel is suggested as a buy at ₹1,972 with stop loss at ₹1,895 and target at ₹2,060, continuing to maintain a strong higher-high, higher-low structure with positive technical crossover signals. TVS Motor is recommended as a buy at ₹4,313 with stop loss at ₹4,070 and target at ₹4,600, having delivered a powerful bullish breakout and trading at its all-time high with strong volume expansion.
Despite the positive momentum, market participants remained cautious amid the escalating US-Iran conflict and higher US Treasury yields. According to LiveMint, Brent crude traded above US$89 per barrel during the session, while the Indian rupee appreciated 9 paise to close at 95.41 against the US dollar. The domestic currency also posted a 1% weekly gain, its strongest performance since March, supported by reports of sustained intervention by the Reserve Bank of India (RBI). The mixed global signals and geopolitical tensions continue to cap the upside potential for Indian equities despite the strong technical indicators and earnings momentum.
