EQUITY RESEARCH (01st Aug 2026)

Driven by strong domestic corporate earnings, broad-based market participation, and solid investor confidence, the Nifty 50 ended the week on a bullish note, gaining 2.59% to settle the week at 24,383.60 after touching the weekly low of 23,891.55 and a high of 24,429.40. Positive macroeconomic indicators, specifically a strengthening Indian Rupee to ₹95.38 and growing foreign exchange reserves, further bolstered the domestic market, helping it brush off uncertain global cues. Looking ahead, maintaining momentum above the crucial 24,350 mark could pave the way for a move toward 24,500, though geopolitical tensions such as the US-Iran conflict, alongside currency fluctuations and foreign institutional investor flows, will ultimately dictate the market’s trajectory.

Indian Foreign Reserve
Driven by a growth in foreign currency assets, which climbed to $551.06 billion, India’s total foreign exchange reserves expanded by $1.08 billion to reach $676.24 billion. This overall uptick occurred despite noticeable declines in other areas like gold reserves shrank by $3.48 billion down to $101.75 billion, while the country’s reserve tranche position with the IMF experienced a slight drop of $32 million.

USDINR weakens
Amid aggressive Reserve Bank of India intervention and supportive portfolio inflows, the Indian Rupee delivered its strongest performance since March advancing roughly 1.21% to settle near 95.38 per US Dollar after starting the week around 96.28. RBI actively defended the INR by deploying state-run banks to sell an estimated $7 billion in the spot and offshore markets, effectively curbing sharp volatility and offsetting pressure from elevated crude oil prices and strong corporate dollar demand. This multi-billion-dollar defense, backed by robust national forex reserves, fueled a five-session rally for the rupee. 

For the week ahead
Domestically, the index would get a direction,taking cues from the performance of INR along with FII’s, which continued to remain sellers. Further investors would take cue from Middle east tension along with prices of the crude oil. Further HSBC manufacturing PMI would also be released with foreign reserve of the country, that will give insight on the health of the economy,thus further giving direction to nifty50.

NIFTY WEEKLY

Nifty 50 traded with positive  momentum and index managed to  breach its crucial resistance of 24,250, a psychological level. The index managed to touch the weekly high of 24,429.90. RSI also inched higher to 52, indicating room for upside in the index. It also continues to trade above the middle band of the bollinger band at 23,802, thus giving room for the index to inch higher. Thus, if the index manages to sustain the 24,350 mark, 24,500 would be the next upside destination. However, any slip below 24,250, would again make it weak towards the mark of 24,100.

BANK NIFTY WEEKLY

Bank Nifty traded with subdued momentum and index went to touch the weekly low of 56,672.42, but managed to went up to settle with a gain of 0.21% at 57,264.85.But baking index has formed a base at the level of 56,607, where index has formed a double bottom, from where index has rebounded. Further, with RSI pointing upward to the  mark of 52.45 from previous week’s number of 50.21, is hinting strength in the index which may further push the index towards the level of 57,350. Thus for the index to further upside the index must pull itself  above the mark of 57,350 then must reach for the next upside destination of 58,230 level. However, if the index breaks the weekly low of 56,672, then we may see the index slipping to the level of 55,540.

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