Stock Market Prediction for July 27: Will Nifty and Sensex Rebound on Monday? Key Levels to Watch

Indian equity markets will begin the new trading week after extending their losing streak on Friday, with the Sensex and Nifty closing lower for the fifth consecutive session. Investors will track global developments, crude oil prices, foreign fund activity and key technical levels when trading resumes on Monday, July 27.

The Sensex settled at 76,059.77, down 331.62 points or 0.43 per cent in Friday’s trade. The Nifty 50 ended at 23,767.45, down 102.15 points, or 0.43%.

Market sentiment was cautious due to global uncertainty, higher crude oil prices and continued selling pressure in certain sectors. IT stocks, however, did relatively well and helped limit the losses.

According to market analysis by Univest, investors will focus on key support levels, index heavyweights and expiry-related factors as markets enter a crucial week.

Nifty 50 outlook: 23,600 remains the key support level

The Nifty 50 enters Monday’s session after five consecutive declines, but the index showed some recovery from lower levels during Friday’s trade.

The index touched an intraday low of 23,606.30 before recovering to close at 23,767.45. The 23,600 level has emerged as an important support zone, according to the market assessment.

The immediate resistance for the Nifty is at 23,850 and then at the 24,000-mark. A sustained move above these levels could improve market sentiment, whereas a break below 23,600 may boost selling pressure.

The derivatives set-up will also be a key factor as markets approach monthly expiry. Tuesday is the July expiry and analysts are expecting expiry-related activity to impact market movement.

The daily Relative Strength Index (RSI) was at 32.9, suggesting that the index was nearing oversold conditions after the recent sell-off.

Sensex outlook: Heavyweight stocks may guide the index

The Sensex is likely to remain influenced by the performance of major index constituents, especially banking and large-cap stocks.

The index closed at 76,059.77 on Friday, with the 76,000 level emerging as an important zone to watch. The 50-day moving average of the Sensex stood near 76,181.

The analysis identified a near-term range of 75,450 to 76,400 for the index. The 75,450 level may act as a support area, while the 76,200 to 76,400 zone could act as resistance.

Among major Sensex stocks, Reliance Industries and TCS showed strength during Friday’s session. On the other hand, banking heavyweights such as HDFC Bank remained under pressure. Since these companies carry significant weight in the index, their movement may influence the broader market trend.

Global cues, crude oil and foreign flows in focus

Global market movements will remain an important factor for domestic equities.

US markets ended Friday on a mixed note. The Dow Jones Industrial Average gained 235.60 points to close at 51,947.25, while the S&P 500 rose marginally to 7,411.98. The Nasdaq Composite declined 161.87 points to 24,975.82 due to weakness in technology stocks.

Prices of crude oil will also be watched by investors, as changes in energy costs can affect inflation expectations and the mood of the markets. Equity markets had been worried about oil price volatility recently.

Foreign investor activity will also be closely watched after recent selling pressure from overseas investors. Market commentary has pointed towards foreign fund outflows as one of the factors affecting investor confidence.

Sectors to watch on July 27

Sector-specific movements could remain important as investors look for signs of stability.

IT stocks may continue to attract attention after showing resilience during Friday’s session. Companies such as Infosys and Wipro remained in focus after the technology sector outperformed several other segments.

Financial services are also likely to be in focus given their heavy weighting in benchmark indices. Any rally in bank stocks could give some support to the broader market.

Consumer durable stocks could stay in focus on account of festive demand expectations. The sector analysis pointed to names like Havells India, Voltas, Dixon Technologies and Titan on the back of seasonal demand and consumer trends.

Investors will be watching Monday’s market open to see if major support levels hold and whether large-cap stocks can anchor the market following the recent slide. Global cues, expiry related activity and sector movements are likely to guide market direction.

(Disclaimer: This article is for informational purposes only and should not be considered investment advice. The views, opinions, and recommendations expressed herein are those of the respective experts. Readers are advised to consult a qualified financial advisor before making any investment decisions.)

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