Indian markets opened sharply higher after Trump signaled he would call off attacks on Iran following pressure from Middle East allies to pursue a deal. Oil prices eased on the news. 

On Monday, Sensex rose 788.7 points to 78,883.34 from the previous close of 78,094.64. Nifty 50 kicked off 189.1 points, or about 0.8%, higher at 24,572.70, while Bank Nifty opened 304.75 points up. 

The Indian rupee opened 25 paise higher at Rs. 95.14 per dollar versus the previous close of Rs. 95.39. FIIs were net buyers for a fourth straight session on July 31, picking up Rs. 277.48 crore. DIIs added Rs. 2,260.37 crore.  

Sensex Outlook

The Sensex continues to exhibit a positive technical structure, with the 77,800-77,600 zone acting as immediate support. The broader bullish trend is likely to remain intact as long as the index holds above this support band. 

“On the upside, Gupta expects the 78,300-78,500 zone to act as the immediate resistance. A sustained breakout above this range could pave the way for the next leg of the rally, with the Sensex potentially advancing towards the 78,800-79,000 levels,” said Sachin Gupta, VP, Technical Research at Choice Equity Broking.

Nifty 50 Outlook

The Nifty 50 traded within a narrow range but maintained a positive bias, ending near the 24,400 mark. The index formed a high-wave candle with a higher high and a higher low on the daily chart, signalling that bullish momentum remains intact.

"Index bias remains positive and dips should be used as a buying opportunity for an up move towards the short-term resistance area of 24,500-24,600, being the confluence of the high of July and April 2026. A breakout above the same will signal a breakout above 3 months consolidation range and open a fresh leg of the up move towards the 24,800 and 25,000 levels in the coming weeks," said Bajaj Broking Research.

On the downside, analysts expect immediate support in the 24,100-24,200 zone. A stronger support base lies between 24,000 and 23,800.

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Bank Nifty Outlook 

Bank Nifty kept on consolidating near the 57,000 level, and printed its third straight high-wave candle, showing more of a stock-specific movement. 

If price manages to push decisively above Wednesday’s high, and also above 57,500, then fresh buying momentum may get activated, and from there it could nudge higher toward 58,000, then 58,500. That area also lines up with the upper band of the past 6 weeks' consolidation.

"On the downside, the 56,500-56,000 zone remains a crucial support area. This region is reinforced by the confluence of the lower band of the six-week trading range, an ascending trendline, and the 52-week EMA, making it a strong demand zone," said Bajaj Broking.