Weekly Market Wrap: Nifty Outlook, Mutual Fund & SIP Trends

1. Market Overview: Nifty Holds Ground Amid Volatility

The Indian equity markets witnessed a week of cautious optimism as the Nifty 50 managed to sustain above key support levels despite global uncertainty.

• The index held firm around the 22,700–22,800 zone, indicating strong buying interest from market participants.
  
  
• Broader markets outperformed, with midcaps and smallcaps seeing selective strength.
  
  
• Sector-wise, Banking, IT, and PSU stocks provided stability, while FMCG and Auto stocks saw mild profit booking.
  
  

From a technical standpoint, Nifty is currently forming a consolidation base. A decisive breakout above 23,000 could open the path to 23,200–23,350, while a breakdown below 22,650 might trigger profit-taking.

2. Mutual Fund Flows – July 2025

The mutual fund industry continued to attract robust inflows in July, underscoring retail and institutional confidence in the market’s long-term growth story.

Key Highlights:

• Equity inflows remained strong for the 29th consecutive month, led by smallcap and midcap funds.
  
  
• Debt fund outflows were driven by corporate treasuries withdrawing short-term investments.
  
  
• Passive investing via ETFs & index funds gained momentum, reflecting a growing preference for low-cost exposure.
  
  

3. SIP Flows & AUM Trends

Systematic Investment Plans (SIPs) remained a major driver of equity inflows.

• Monthly SIP inflows (July 2025): ₹21,200 crore – a new record high.
  
  
• Number of SIP accounts: 8.2 crore – reflecting growing retail participation.
  
  
• Average SIP ticket size: ₹2,585.
  
  
• Industry AUM (Assets Under Management): ₹63.1 lakh crore – supported by both equity gains and steady inflows.
  
  

Why it matters: The surge in SIP flows shows that investors are sticking to disciplined, long-term investing despite market volatility — a positive sign for market stability.

4. Nifty Technical & Derivatives Outlook

From a derivatives perspective, data indicates a mildly bullish bias:

• Put-Call Ratio (PCR): 1.05 – showing more puts being written than calls, signalling support.
  
  
• Highest Call OI: 23,000 strike – immediate resistance.
  
  
• Highest Put OI: 22,700 strike – immediate support.
  
  
• FII Activity: Foreign investors remained net buyers in index futures, suggesting confidence in near-term upside.
  
  

Technical Levels to Watch:

• Upside targets: 23,200 / 23,350
  
  
• Downside supports: 22,700 / 22,650
  
  

5. Takeaways for Investors & Traders

• Long-term investors: SIP discipline is paying off — continue staggered investing in quality funds.
  
  
• Short-term traders: Watch the 23,000 breakout for long opportunities; protect positions if Nifty slips below 22,650.
  
  
• Sector rotation: Banking and IT may continue to lead; FMCG might see consolidation.
  
  

 Bottom line:
The Indian market’s resilience, record-high SIP flows, and steady mutual fund inflows are providing a cushion against global headwinds. Staying invested with a disciplined approach while keeping an eye on key technical levels remains the smart play.