Markets Seem Oversold, and Recovery Remains Doubtful: What's Next Indian Stock Market?

Markets Appear Oversold with Uncertain Recovery: What Lies Ahead for Indian Stocks?

Written by: Supriya Kadu

Edited by: Pinky Deshmukh

Last Updated: July 29, 2025

Summary: Even with signs of an oversold market, a rebound seems unlikely. Analysts recommend cautious optimism amidst both global and domestic uncertainties.

Although the Indian market is currently oversold, there are indications that it may experience a significant recovery. Despite the challenges faced by the Nifty and Sensex in gaining momentum, technical signals have pointed towards a potential bottom.

The major market indices opened slowly on Monday, July 29, with the Sensex remaining low and the Nifty closing around 24,900. Analysts observe that the RSI (Relative Strength Index) and other technical indicators reflect oversold conditions, but market sentiment remains influenced by global economic concerns, foreign capital outflows, and upcoming macroeconomic data.

Market experts suggest that although the correction might be coming to a close, the lack of robust triggers and ongoing volatility is hindering a lasting rally. Sectors such as IT and banking are still under pressure, but there is noticeable selective buying in defensive stocks.

Traders should be cautious and avoid risky positions until an obvious trend reversal occurs. Short-term market swings are expected to remain within a range, with a little bearish bias, until global signals improve or corporate earnings exceed expectations.

To recap, while markets appear to be oversold, the much-anticipated rebound will most likely be driven by global developments, FII activity, and indications from upcoming policy meetings. Until then, remaining defensive may be a better option.