The Indian stock market opened sharply lower amid weakness in global markets, as a rise in crude oil prices has increased inflation concerns and dampened investors sentiment. At the open, Nifty 50 fell 178 points, Sensex declined 633 points and Bank Nifty edged over 0.70% lower.

On Thursday, the Sensex declined 363.66 points, or 0.47%, to finish at 76,391.39, while the Nifty 50 fell 126.65 points, or 0.53%, to settle at 23,869.60. The Indian rupee opened lower at Rs. 96.63 per dollar on Friday versus Thursday's close of Rs. 96.57.

Domestic institutional investors (DIIs) stepped up buying in Indian equities on July 23, purchasing shares worth Rs. 2,947.14 crore, while foreign institutional investors (FIIs) remained net sellers, offloading equities worth Rs. 2,999.23 crore.

Sensex Outlook

Technically, the Sensex formed a bearish candle on the daily chart, and it is holding a lower top formation on intraday charts, supporting further weakness from the current levels.

“As long as the market is trading below 77,000, weak sentiment is likely to continue on the downside. The correction wave is likely to persist till 76,000. Further downside may also continue, which could drag the index to 75,700-75,500. On the flip side, above 77,000, the sentiment could change. Above this level, the market could bounce back to 77,300-77,500. The intraday market texture is uncertain and volatile; hence, level-based trading would be the ideal strategy for day traders," said Shrikant Chouhan, Head of Equity Research at Kotak Securities.

Nifty 50 Outlook

The Nifty 50 continues to exhibit a corrective trend after extending losses for the fourth straight trading session. The index formed a high-wave candle on the daily chart, indicating that selling pressure remains intact.

The index is currently testing the important support area between 23,800 and 23,750, where the 50-day Simple Moving Average (SMA) coincides with multiple swing lows formed over the past five weeks.

"On the downside, a breach below 23,800-23,750 on a closing basis will accelerate downside towards the 23,500 levels in the coming weeks, being the confluence of the trendline support joining lows of April and June 2026, bullish gap area of June 15, 2026 and 61.8% retracement of the recent up move from 23,070-24,530," said Bajaj Broking Research.

The brokerage added that a move back above 24,000 could temporarily halt the recent decline and pave the way for a recovery towards 24,200 during the coming week.

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Bank Nifty Outlook 

The Bank Nifty formed a bearish candle pattern with lower highs and lower lows on the daily chart, indicating weakness in the near term.

A sustained move below the 56,200-56,500 support zone could trigger further weakness towards the 55,500-55,000 levels, which coincide with a key trendline support and the 61.8% Fibonacci retracement of the previous rally.

"A shallow retracement signals overall positive bias and a higher base formation in the current corrective decline. On the higher side, 57,500 will act as an immediate hurdle, while the upper band of the recent consolidation, placed around 58,500-58,700, will act as a stiff hurdle in the index in the coming weeks," said Bajaj Broking Research.