Indian stock markets are likely to experience a muted opening on July 28, 2025, following mixed cues from global markets.

Global Market Indicators

• Mixed Asian Markets: Asian markets presented a mixed picture on Monday. Japan's Nikkei 225 and the Topix index experienced declines, while South Korea's Kospi showed a slight increase.
• US Stock Futures Positive: US stock futures indicated a positive trend as Wall Street prepared for a week filled with earnings reports from major tech companies, a Federal Reserve meeting, and key economic data releases.
• US-China Trade Talks: Investors are closely monitoring the US-China trade negotiations.
• US-EU Trade Deal: Optimism surrounding the US-European Union trade deal may influence market sentiment.

Domestic Market Trends

• Gift Nifty Suggests Muted Start: Trends in the Gift Nifty suggest a tepid start for Indian benchmark indices. The Gift Nifty was trading around 24,832, a discount from Nifty futures' previous close.
• Recent Market Performance: On Friday, the Indian stock market closed with significant losses, with the Nifty 50 closing below the 24,900 level. The Sensex also declined substantially.
• Foreign Investor Activity: Foreign portfolio investors remained net sellers of Indian shares for the fifth consecutive day on Friday.
• Technical Analysis: Nifty 50 broke a key support level, forming a bearish candle on the daily chart, signaling weakness. The index also closed below its 50-Day simple moving average for the first time in several weeks.
• Expert Opinions: According to Sumeet Bagadia, Executive Director at Choice Broking, the Indian stock market bias has weakened, and the Nifty 50 may test lower levels in the coming sessions. Rupak De, Senior Technical Analyst at LKP Securities, suggests that if the Nifty 50 fails to reclaim levels above 24,900, bulls could face short-term challenges.

Key Factors to Watch

• India-US Trade Deal: Developments regarding the India-US trade deal will be closely watched.
• Q1FY26 Earnings Season: The ongoing Q1FY26 earnings season and results from key companies will influence market sentiment. Companies like Kotak Mahindra Bank and Bharat Electronics (BEL) are scheduled to report earnings.
• Crude Oil Prices: Trends in crude oil prices remain a key factor.
• India-UK Free Trade Agreement (FTA): The recently signed India-UK FTA, which aims to enhance bilateral trade, could provide some positive momentum.

Sectoral Outlook

• Pharma and Healthcare: Pharma and Healthcare indices showed resilience amid a broad-based sectoral sell-off.
• FMCG and IT: FMCG and IT sectors displayed relative strength, potentially indicating a defensive shift by investors.
• Nifty Media, PSU Banks, Oil & Gas, and Metal: These sectors fell sharply, registering the steepest declines.

Trading Strategy

• Sell-on-Rise: Experts suggest adopting a "sell-on-rise" strategy unless the Nifty 50 manages to sustain above the 25,200 level.
• Stock-Specific Approach: Maintaining a stock-specific approach and focusing on technically strong stocks is advised.

Overall Market Sentiment

The overall sentiment remains cautious due to global uncertainties, mixed earnings reports, and continuous selling by foreign investors. Technical indicators suggest further downside risk, although oversold signals hint at a possible near-term bounce.