Indian stock market indices, the Nifty 50 and the Sensex, are expected to start on a muted note on July 29, following weak cues from global markets.

Global and Domestic Cues:

• Global Market Trends: While European indices showed mixed performance, U.S. markets closed in the green, with the Nasdaq rising 1.02% and the Dow gaining 0.48%. This might offer some cushion to the Indian market.
• Gift Nifty: The Gift Nifty was trading around 24,672, indicating a discount of nearly 38 points from Nifty futures' previous close, also pointing towards a tepid opening.
• FII/DII Activity: Foreign investors have been net sellers for the fifth consecutive session, offloading ₹1,980 crore on July 25. However, domestic institutions have been providing support with buying of ₹2,138 crore. On July 28th, FIIs remained net sellers at ₹6,082.50 crore, while DIIs were net buyers at ₹6,764.60 crore.

Market Performance on July 28:

• The domestic market closed with significant losses on Monday, with the Nifty 50 closing below the 24,700 level.
• The Sensex declined by 572.07 points (0.70%) to close at 80,891.02, while the Nifty 50 settled 156.10 points (0.63%) lower at 24,680.90.
• Weak Q1 results from Kotak Mahindra Bank weighed on the market, with the stock plunging more than 7% after its earnings fell short of expectations.
• All sectoral indices closed lower except for pharma. Realty dropped 4%, media lost nearly 3%, while capital goods, metal, telecom, PSU bank, and private bank indices fell between 1 to 1.5%.

Nifty 50 and Sensex Predictions:

• Sensex: According to Shrikant Chouhan, Head of Equity Research at Kotak Securities, as long as the Sensex trades below 81,100, weakness is likely to persist. The index may correct to 80,500 - 80,350. A break above 81,100 could trigger a pullback rally towards 81,400, potentially extending to 81,700.
• Nifty 50: The Nifty 50 formed a bearish candlestick for the third consecutive session on July 28.
• Support and Resistance Levels:
  • Nifty has broken below the crucial support range of 24,700 to 24,800 and now has support at 24,500.
  • Key resistance is at 24,800–25,200, while support lies between 24,600 and 24,000.
  • Immediate downside target if weakness continues is 24,756, followed by 24,671.
  • Upside targets include a short-covering target at 24,870 and minor resistance at 24,915.
• OI Data: The highest Nifty call open interest (OI) is at the 24,800 strike, indicating potential resistance. The highest put open interest is at 24,500. A firm close above 24,800 is needed to revive bullish momentum.

Market Sentiment and Outlook:

• Overall sentiment remains weak due to poor earnings, foreign fund outflows, and global uncertainty.
• Analysts suggest that July 29 could be a potential turning point for the market, possibly signaling a short-term top or bottom.
• Time-based analytics continue to play a crucial role in identifying key intraday and positional trading opportunities.
• The structure of Nifty is weak, with a slowdown in the corporate world impacting revenue numbers.

Stocks to Watch:

• Several companies reported their quarterly results, announced strategic partnerships, or secured major contracts, leading to stock-specific action.
• Stocks in focus include ONGC, RailTel, GAIL, IndusInd Bank, Mazagon Dock, and Waaree Energies.
• Real estate major Omaxe secured ₹500 crore in funding from Oaktree Capital Management.

Trading Strategy:

• Given the current market conditions, a stock-specific approach is recommended, focusing on stocks that show strength on technical charts.
• Experts suggest longing Nifty with a strict stop loss at 24,500, considering the risk-reward ratio.
• Sumeet Bagadia, Executive Director at Choice Broking, recommends buying Jagsonpal Pharmaceuticals, Sterlite Technologies, Cartrade Tech, Vijaya Diagnostic Centre, and Advait Energy Transitions.
• Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, believes that the Nifty 50 index has crucial support at 24,500 and is facing resistance at 24,900.

Disclaimer: It's important to note that these are expert opinions and market predictions, and actual market movements may vary. Investors should conduct thorough research and consult with a financial advisor before making any investment decisions.