Sensex Eyes 79,000 After Rally; Experts Urge 'Buy on Dips' on July 7

The Indian stock market is buzzing as the Sensex, India's benchmark index, continues its strong upward journey, eyeing the significant 79,000 mark today, July 7. This comes after Monday's impressive 521-point rally that pushed the index past the 78,000 milestone for the first time ever. Experts are advising a 'buy on dips' strategy, confident that the positive momentum will extend into Tuesday's trading. This four-day winning streak isn't just luck; it's backed by several strong tailwinds. Foreign Institutional Investors (FIIs) have notably shifted from being sellers to buyers, injecting substantial capital into Indian equities over recent sessions. Adding to the optimism, HDFC Bank has been a powerhouse, leading a banking-driven rally, while hopes of a reviving monsoon are bolstering sentiment for rural-focused sectors. Global cues are also playing a part, with softer US jobs data easing concerns about aggressive US Federal Reserve interest rate hikes and crude oil prices returning to pre-war levels, calming inflation worries. Traders are closely watching key technical levels, with Sensex needing to hold above 78,000 for continued gains and Nifty 50 finding strong support around 24,300-24,350. Resistance for Sensex is seen between 78,900 and 79,000, while Nifty aims for 24,600 and potentially higher. With India VIX remaining low, indicating reduced market fear, and a positive Put-Call Ratio, the stage appears set for bulls to keep pushing, though caution remains ahead of upcoming corporate earnings. Even big names like Morgan Stanley are forecasting significant upside for Sensex, potentially reaching 89,000 by mid-2027 and even 100,000 in a bull-case scenario.