Stock Market Outlook Today, July 31, 2026: Sensex, Nifty May Extend Rally; Global Markets, Q1 Results in Focus

Sensex and Nifty expected to remain on a positive footing on Friday, July 31, as improving market breadth, sustained buying in select heavyweight sectors and encouraging technical indicators continue to support investor sentiment. Market participants will closely monitor global cues, foreign institutional investor (FII) activity and stock-specific earnings for further direction.

Stock Market Outlook Today, 31 July 2026: Sensex, Nifty Prediction for Friday

Domestic benchmark indices navigated a volatile trading session on Thursday before ending with modest gains, aided by strong buying in auto and oil & gas stocks. Although the monthly Sensex expiry and firm crude oil prices kept investors cautious during the first half of the session, renewed buying interest in frontline stocks helped the market recover from intraday swings.

The BSE Sensex rose 0.35% to settle at 77,928, while the NSE Nifty 50 advanced 0.28% to close at 24,317. Sectorally, Nifty Auto and Nifty Oil & Gas outperformed the broader market, whereas Realty and Chemicals stocks witnessed selective profit booking.

Nifty Prediction Today, 31 July 2026: Technical Structure Remains Positive

According to Bajaj Broking Research, the Nifty continues to display a constructive technical setup after closing above last week's high and maintaining its pattern of higher highs and higher lows on the daily chart.

Nifty traded in a range with positive bias and closed around the 24,300 levels on Thursday session. Index formed a bullish candle with a higher high and higher low. signaling positive bias and continuation of the up move. The index in the process closed above the last week high highlighting strength.

"Going ahead, bias remain positive as index continues to form higher high and higher low in daily chart and we expect the index to maintain positive bias and head towards 24,370 and 24,480 in the coming sessions. Wednesday gap area of (24041-24136) is likely to act as immediate support," said the brokerage.

From a short-term perspective, Bajaj Broking expects the benchmark index to gradually move towards the crucial resistance zone of 24,500-24,600, which coincides with the current month's high and the peak recorded in April 2026.

On the downside, the brokerage sees immediate support in the 23,800-24,000 zone, where the 20-day and 50-day exponential moving averages (EMAs) converge with the recent bullish gap, making it an important demand area for the index.

Bank Nifty Outlook Today: 57,500 Remains, Key Level to Watch

Bajaj Broking Research said Bank Nifty continued to consolidate around the 57,000 mark after forming its second consecutive high-wave candle, indicating stock-specific movement within a broader sideways trend.

The banking index has remained confined to the 56,500-58,700 range over the past six weeks, with 57,500 emerging as the immediate resistance level.

According to the brokerage, a decisive breakout above Wednesday's high and the 57,500 mark could trigger fresh buying momentum and pave the way for a rally towards 58,000 and subsequently 58,500, which represents the upper boundary of the ongoing consolidation range.

"However, failure to surpass 57,500 levels is likely to keep the index range-bound between 56,500-57,500. 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. As long as the index holds above this support cluster, the broader outlook is expected to remain constructive," said Bajaj Broking Research.

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