EQUITY RESEARCH (18th July 2026)

The Nifty 50 starts with inactive to the week moment, building enough upward momentum to reached a weekly high of 24,367.30 and finish 0.53% higher at 24,334.30. This was supported by a strong corporate earnings season, led by sectors like  IT and  financials, alongside softer US inflation data, which has revived hopes for a more relaxed monetary policy. Market sentiment also got positivity from progress on the UK-India trade pact, which promises to unlock new export and economic opportunities. However, the index couldn’t quite break out entirely, as a depreciating Rupee (which hit a weekly low of 96.4059) capped the market’s upside. Also continued selling by FII’s is putting pressure on Nifty. For the month till date, FII’s made net sales of Rs 4546.87 crores.

Domestic economic Number

India’s trade deficit widened this month which weighed on INR. For the month of June the trade deficit widened to $30.43 billion compared with $19.10 billion reported a year ago and $28.21 billion in May 2026. Inflation increased for the month of June. Retail inflation accelerated to 4.38% in June 2026 from 3.93% in May 2026,amid higher food and fuel prices. On the other hand, Wholesale inflation also played in line with CPI, as WPI for the month of June was reported at  9.87% in June 2026 from 9.68% in May 2026. Thus, key weakening domestic economic numbers capped the upside in the index.

UK-India FTA

The India- UK Comprehensive Economic and Trade Agreement and the accompanying Double Contribution Convention social security pact have officially taken effect. This agreement opens major avenues for growth across a wide range of industries, delivering a increase in traditional goods sectors like textiles, leather, jewelry, engineering, chemicals, and food processing, while directly benefiting small businesses, farmers, and manufacturers. Furthermore, this expands horizons for India’s services economy, particularly in IT, finance, education, and professional services, while streamlining international mobility for Indian talent.

The Week Ahead

Market would be governed by updates from the US-Iran war, further performance of Rupee and FII’s stance on the Indian market would give direction to the Nifty50. Further market would keep eye on the Fed’s decision on the interest rate die on 28-29 July, that would further clear the air for the coming week.

For the week ahead

Domestically, the index would get a direction, taking cues from the performance of INR along with FII’s, which turned net buyer in the month of July, for the first time since July 2025..For the month of July till date, FII’s made net purchase of  ₹4572.89 crores. Along with the same, development on the US-Iran front, along with US inflation data, and crude oil prices movement would give further direction to the index.

NIFTY WEEKLY

Nifty 50 traded with positive momentum and index managed to touch a weekly high of  24367.30 and.. Further upside in the index would be possible, if the index manages to trade and sustain above the mark of 24,350 then only 24,600 would be possible, Otherwise, if the index fails below the mark of 24,350 then 24,100 yet again be the next downside target for the index.

BANK NIFTY WEEKLY

Bank Nifty traded with sideways momentum but index managed  to breach previous week’s high of   58,596.85. Index  sustained the momentum and went to settle at 58,521.40 higher by 1.63% from previous weekly close of 58,045.90. Thus for the index for further upside must sustain above the mark of 58,540 then must reach for the next upside destination of 59,500 level. Downside would only be possible, if the index falls below the mark of 57,100.

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