Stock market recap, July 30 -- Indian equities staged a strong rebound on Wednesday, outperforming most Asian markets even as geopolitical tensions in West Asia intensified and oil prices climbed sharply. The rally came at a time when investors across the region continued to exit technology and semiconductor stocks amid growing concerns that the global artificial intelligence (AI) investment boom may not generate the expected returns.

The benchmark indices rose more than 1% each, lifting investor wealth by nearly Rs.3 trillion. The gains were broad-based, with buying interest visible across heavyweight stocks and the broader market, even as volatility eased.

The Sensex surged 880 points, or 1.1%, to an intraday high of 77,646.09, while the Nifty 50 climbed 259 points, or 1.1%, to touch 24,244.55.

Among the Sensex constituents, Infosys, Hindustan Unilever, Tata Steel, Larsen & Toubro (L&T) and TCS emerged as the biggest gainers, advancing by as much as 5%. On the other hand, Adani Ports, Bharat Electronics, Power Grid, Mahindra &

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Nifty 50 performance on 29 July

Indian equity markets ended sharply higher, with benchmark indices rebounding on broad-based buying led by IT, FMCG, Metals and Financials. Nifty 50 closed at 24,250.20, up 264.85 points (+1.10%), while BSE Sensex gained 889.05 points (+1.16%) to finish at 77,654.60. Optimism around corporate earnings, strength in global equities and renewed buying in large-cap technology stocks outweighed concerns over elevated crude oil prices and geopolitical tensions.

On the sectoral front, Nifty IT (+2.32%) and Nifty Metal (+2.31%) emerged as the top performers, followed by FMCG (+1.66%), Pharma (+1.44%), Consumer Durables (+1.43%) and Media (+1.43%). In comparison, Auto (-0.06%) and Realty (-0.33%) were the only sectors to end in the red. Market breadth remained firmly positive, with 2,130 stocks advancing, 1,183 declining, and 128 remaining unchanged, reflecting widespread participation beyond the benchmark indices.

Nifty 50 staged a strong recovery, forming a bullish candlestick after finding buying interest near the rising trendline. Price action continues to exhibit a pattern of higher lows, indicating that buyers are gradually regaining control despite the broader medium-term consolidation. The index also closed above its short-term moving averages, reflecting improving market sentiment and strengthening near-term momentum.

Momentum indicators have turned constructive. The Relative Strength Index (RSI) has risen to 56.11, moving above its signal average and remaining above the neutral 50 level, which indicates improving bullish momentum without entering overbought territory. Meanwhile, the MACD remains in positive territory, although the histogram is still marginally negative, indicating that bearish momentum is fading and that a bullish crossover could develop if buying interest continues over the coming sessions.

The index staged a strong rebound, reclaiming its 21-DMA with the rising trendline, indicating an improvement in near-term market sentiment. However, sustaining these levels will be crucial to reinforce the ongoing recovery. On the downside, a decisive break below 23,600 could trigger renewed selling pressure, exposing the index to 23,300, and further downside risk toward 23,000. On the upside, the index needs to decisively reclaim and sustain above 24,400 to signal a meaningful revival in bullish momentum. Such a move would also confirm a breakout from the recent consolidation range, strengthening the overall technical structure and increasing the probability of an advance toward 24,500-24,600.

How did Nifty Bank perform?

Nifty Bank opened on a positive note at 57,126.60 and witnessed steady buying interest throughout the session. The index touched an intraday high of 57,315.95, and a low of 56,939.35, before settling at 57,205.90, up 450.30 points (+0.79%). The recovery from the intraday low indicates that buyers remained active at lower levels, helping the index close near the upper half of the day's range.

Despite the gains, Nifty Bank continues to trade below its 21-, and 200-DMA, while remaining comfortably above the 50- and 100-DMA, reflecting a mixed but gradually improving technical structure. The recent price action also suggests a short-term consolidation pattern, with the index attempting to build a base near key moving averages before its next directional move.

The RSI edged higher to 49.95, although it remains below the neutral 50 level and its moving average of 52.12, indicating that momentum is improving but has yet to turn decisively bullish. Meanwhile, the MACD remains below its signal line, while the histogram stays negative, suggesting that bearish momentum has not yet been fully exhausted despite today's rebound.

However, the narrowing histogram indicates that selling pressure is gradually easing. A sustained move in the RSI above 50, accompanied by a bullish MACD crossover, would strengthen the case for a more durable recovery in the coming sessions.

On the downside, immediate support is placed around 56,900-56,800, followed by the 50-DMA near 56,486, while stronger support is seen around the 100-DMA near 55,734. On the upside, immediate resistance is located near the 10-DMA (57,334), followed by the 21-DMA (57,583). A decisive close above these resistance levels could pave the way for a retest of the recent swing highs near 58,000-58,300. Conversely, failure to sustain above the 50-DMA may invite renewed selling pressure.

From a broader perspective, banking stocks remains sensitive to earnings announcements, foreign institutional flows, and expectations around interest rates. If the index holds above the 50-DMA, the current consolidation is likely to favour a gradual recovery rather than a resumption of the broader corrective trend.

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