Sensex rises 143 pts, Nifty above 24,850; stock market strategy for July 31

Domestic equity benchmarks Sensex and Nifty50 extended gains for the second straight session on Wednesday, as buying in heavyweights such as Larsen & Toubro, Sun Pharma and NTPC offset selling in Tata Motors and Power Grid Corporation. The overall sentiment remained muted amid a lack of directional cues. 

The BSE Sensex rose 143.91 points, or 0.18 per cent, to close at 81,481.86.  The NSE Nifty50 gained 33.95 points, or 0.14 per cent, to settle at 24,855.05. Ajit Mishra, SVP, Research at Religare Broking Ltd, said the markets traded in a tight range and ended marginally higher amid mixed cues. 

“After a flat start, the Nifty oscillated within a narrow band throughout the session and finally settled at 24,855.05. Sentiment remained subdued due to lingering uncertainty over the trade deal, following the latest statement from the US President about potential tariffs on India, amid delays in finalizing the agreement ahead of the August 1 deadline,” Mishra said.

Larsen & Toubro led the Sensex gainers, advancing 4.72 per cent to Rs 3,659.90. Sun Pharma added 1.26 per cent, followed by NTPC (up 1.26 per cent), Maruti Suzuki (up 0.91 per cent), Bharti Airtel (up 0.87 per cent) and Trent (up 0.83 per cent).

Larsen & Toubro, Bharti Airtel, Sun Pharma, HDFC Bank, NTPC and Axis Bank emerged as the top contributors to the Sensex’s rise. 

Among sectoral indices, the BSE Bankex fell 0.06 per cent, or 40.43 points, to end at 62,230.47. 

L&T was up after several brokerages raised their price targets, buoyed by the company’s strong Q1 performance for FY26.

Tata Motors ended as the top loser on the Sensex amid reports that the automaker is in advanced talks to acquire Italy-based Iveco Group’s truck business. As per media reports, Tata Motors may acquire the unit from the Agnelli family in a $4.5 billion deal. Shares of Tata Motors fell 3.48 per cent to close at Rs 668.30.

Market strategy for July 31:

Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities said that on Wednesday, benchmark indices witnessed a range-bound session, with the Nifty 50 ending marginally higher by 0.14 per cent at the 24855 mark. Within the Nifty 50 pack, Larsen & Toubro (LT) and Sun Pharma emerged as the top gainers. 

“On the flip side, Tata Motors and Hero MotoCorp were the notable laggards, dragging the index lower. Among the sectoral indices, Nifty IT and FMCG led the charge and ended on a positive note. Conversely, Nifty Media and PSU Bank indices witnessed profit booking, underperforming the broader market,” Shah said.

Shah said, “Despite Tuesday’s recovery, the broader markets failed to maintain the momentum. Both the Nifty Midcap 100 and Nifty Smallcap 100 indices ended in the red, signalling some fatigue at higher levels. Meanwhile, the overall market breadth remained slightly positive, with the advance/decline ratio tilted in favour of the advancing stocks, reflecting a mixed sentiment across the board.”

“The benchmark index Nifty ended on a positive note on Wednesday. The index formed a small-bodied candle with a noticeable lower shadow on the daily chart—indicating intraday buying interest at lower levels. Notably, this formation comes a day after the emergence of a bullish engulfing pattern, which typically signals a potential shift in market sentiment,” Shah noted.

“Going ahead, the 50-day EMA zone of 24930-24960 will act as an immediate hurdle for the index. Any sustainable move above the level of 24960 will lead to extension of pullback rally upto the 24100 level. While on the downside, the zone of 24730-24700 will act as crucial support for the index. A breach below this level may invite fresh selling pressure and dampen bullish sentiment,” Shah added.

Vinod Nair, Head of Research, Geojit Investments Limited said the domestic market ended the session marginally positive after a range-bound trade, despite ongoing uncertainty around the delayed India-US trade agreement and mixed earnings. 

“The investors turned more stock/sector specific based on the Q1 results; the industrial segment gained momentum after robust earnings from L&T. The auto sector underperformed, largely due to tariff-related pressures. Investors are now focusing on the US Fed’s policy meeting, as its stance on rates and inflation could shape global sentiment," Nair said.

Rupak De, Senior Technical Analyst at LKP Securities, said the Nifty traded within a narrow range, remaining below the 50 EMA on the daily timeframe. The short-term trend remains slightly weak as the index continues to sustain below this critical moving average. 

“However, the possibility of a meaningful recovery stays intact, supported by a bullish reversal pattern formation and a hidden positive divergence. In simple terms, the index may continue to move up towards 25,000–25,200 in the short term, with support placed at 24,750. A break below this level could weaken market sentiment," Rupak said.

Out of 4,158 stocks traded on the BSE, 2,030 advanced, 1,964 declined, and 164 remained unchanged.