Nifty on Rebound Discovers Put Writers at 24800 to Cheer Bulls

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Indian equity markets bounce back with 0.57% gains led by pharma, midcaps

By S JHA

MUMBAI, July 29, 2025 — After enduring several sessions of relentless selling pressure, the Indian equity markets staged a sharp recovery on Tuesday, buoyed by strong global cues and renewed buying interest in key sectors. The benchmark Nifty 50 index climbed 0.57%, closing at 24,821, reclaiming the crucial 24,800 mark ahead of significant Q1 earnings announcements.

The Sensex mirrored this recovery, supported by positive trends in the broader market and midcap space. Aiding the recovery was a strong performance from the pharma and infrastructure segments, with the Nifty Pharma index rising 1.37%, marking its fourth consecutive session in the green.

Analysts from Angel One noted that the sector’s positive momentum is expected to continue, backed by a robust chart structure. The rally was underpinned by strong long positions, as reflected in derivatives data.

“Open interest in Nifty futures increased by 2.59%, while trading volume surged over 18% compared to the previous session, pointing toward a confident rebound,” said Angel One in a note to clients.

The brokerage firm stated that “option activity also showed significant short covering in call strikes between 24,600 and 25,750, particularly at the 24,800 call, alongside fresh put writing at the same level — a bullish sign in the near term.”

Despite the optimism, analysts urge caution, noting that the Nifty continues to trade below its 10-day, 20-day, and 50-day EMAs, suggesting technical vulnerability. Immediate resistance is expected at the 24,900–24,930 zone, marked by the confluence of the 50-day EMA and the 61.8% Fibonacci retracement.

“A bearish gap at 25,000 remains an unfilled technical hurdle. On the downside, support lies at 24,600, with a more solid floor around 24,500,” added Angel One.

All sectoral indices ended in the green, with Realty stocks leading the gains, while IT posted the least movement. Investor sentiment improved, supported by gains in select midcaps such as GE Vernova T&D India, Varun Beverages, and GMR Airports, reflecting optimism in infra and consumption-oriented plays.

Meanwhile, European indices also delivered a strong performance, with France’s CAC and Germany’s DAX gaining around 1.5%, and the UK’s FTSE adding 0.70%, reinforcing the global tailwinds.

Market participants remain cautiously optimistic as they await a fresh round of earnings and macroeconomic data for further direction. While bounce back has provided a technical breather, sustained movement above 24,930–25,000 remains crucial for continued upside momentum.

Disclaimer: This article makes no recommendations for any kind of trades in the stock market.

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