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CM FINANCIALS

📊 WEEKLY MARKET WRAP

Week Ended: 31 July 2026
Market Outlook for Monday, 3 August 2026

🇮🇳 Weekly Market Summary

Indian equities ended the week with an improving recovery structure. Nifty recovered from the 24,000 zone and closed the week near 24,383.60. The broader setup improved as institutional flows remained supportive, volatility stayed low and the index moved back toward its key long-term technical zone.

Indicator Reading Signal
NIFTY 50 24,383.60 🟢 Positive
BANK NIFTY 57,264.85 🟢 Mild Positive
India VIX ~11.75 🟢 Low Volatility
FII Net Flow +₹185.52 Cr 🟢 Positive
DII Net Flow +₹1,928.15 Cr 🟢 Strong Positive
Combined Flow +₹2,113.67 Cr 🟢 Positive
USD/INR ~95.52–95.57 🔴 Concern
Crude Oil Elevated 🔴 Key Risk

🏦 FII–DII Institutional Flow

FII NET FLOW
+₹185.52 Cr
DII NET FLOW
+₹1,928.15 Cr
TOTAL NET INSTITUTIONAL FLOW
+₹2,113.67 CRORE
Institutional Sentiment: 🟢 POSITIVE

FII buying is not aggressive yet, but the shift toward the buying side is encouraging. Strong DII participation continues to provide an important liquidity cushion to the Indian market.

📈 NIFTY Technical Structure

Nifty's 24,350–24,400 area is the key battlefield. Sustaining above this zone would strengthen the ongoing recovery structure.

🚀 Resistance
24,450 → 24,500 → 24,600
🛡️ Support
24,350 → 24,300 → 24,200
Major Structural Support: 24,000

Current technical structure: Higher High + Higher Low + Key Long-Term Average Test = Improving Bullish Structure

🏦 BANK NIFTY

Bank Nifty closed near 57,264.85. Banking participation has improved, but stronger confirmation is required to support a broader Nifty breakout.

🛡️ Support: 56,900–57,000
🚀 Resistance: 57,500 → 57,800

🌡️ INDIA VIX

India VIX around 11.75 indicates relatively low fear in the market. This supports overall sentiment but also suggests that option premiums may experience faster time decay if the market remains range-bound.

💵 USD/INR — Important Concern

USD/INR near 95.5 remains an important macro concern. A weaker rupee can create pressure through imported inflation, higher import costs and potentially weaker foreign institutional flows.

🛢️ CRUDE OIL — Major External Risk

Elevated crude remains one of the biggest macro risks for India. Higher crude can increase inflation, pressure the rupee, raise India's import bill and impact corporate margins.

⚠️ Weekend developments in the Middle East and crude oil should be monitored carefully before Monday's opening.

🌍 Global & Geopolitical Setup

Monday's opening can change materially depending on weekend global developments. The key sequence to watch is:

Middle East → Crude Oil → US Markets → Asian Markets → USD/INR → Gift Nifty

🧮 CM Financials Sentiment Model

Nifty Price Structure 🟢 +2
Bank Nifty 🟢 +1
FII Flow 🟢 +1
DII Flow 🟢 +2
India VIX 🟢 +2
Technical Momentum 🟢 +2
USD/INR 🔴 -2
Crude Oil 🔴 -2
Geopolitical Risk 🔴 -2
OVERALL MARKET SENTIMENT
64 / 100
🟢 MILD BULLISH
Bulls have an edge, but breakout confirmation is still required.

🔮 Monday — 3 August 2026 Outlook

58%
🟢 Bullish
27%
🟡 Sideways
15%
🔴 Bearish

Expected Market Flow

Flat / Mild Positive Opening

Initial Consolidation

Dip Buying Near Support

24,450–24,500 Test

🎯 Monday NIFTY Trading Map

🟢 Above 24,400: Bullish Bias
🚀 Above 24,500: Breakout Confirmation
Targets: 24,550 / 24,600
🟡 24,300–24,400: Range / Consolidation
🔴 Below 24,300: Weakness
⚠️ Below 24,200: Bullish setup weakens significantly
PREFERRED MONDAY STRATEGY
BUY ON DIPS
Avoid chasing the opening. Bias remains positive while Nifty holds the 24,300–24,350 support zone.

📌 Next Week Big Picture

EXPECTED NIFTY WORKING RANGE
24,000 – 24,700

A sustained breakout above 24,600 can open the door for a stronger recovery phase. A breakdown below 24,000 would indicate that the current recovery may have been only a pullback.

⭐ CM Financials Final View

🟢 Weekly Trend: Improving
🟢 Institutional Flow: Positive
🟢 DII Support: Strong
🟢 FII Behaviour: Improving
🟢 Volatility: Favourable
🟢 Technical Structure: Mild Bullish
🔴 Rupee: Concern
🔴 Crude Oil: Major Risk
🔴 Geopolitical Situation: Weekend Risk
NEXT WEEK MARKET BIAS
🟢 MILD BULLISH / BUY ON DIPS
Monday Confidence Score: 64 / 100
Disclaimer: This market analysis is for educational and informational purposes only. It should not be considered investment or trading advice. Market conditions can change rapidly due to domestic and global developments. Please consult your financial advisor and manage risk before taking any trading or investment decision.
CM FINANCIALS
Moving Ideas Forward
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