As the Axis forces dug in, Auchinleck—having drawn a number of German units to the coastal sector during the Tel el Eisa fighting—developed a plan—codenamed Operation Bacon—to attack the Italian Pavia and Brescia Divisions in the centre of the front at the Ruweisat ridge.
Signals intelligence was giving Auchinleck clear details of the Axis order of battle and force dispositions.
His policy was to "...hit the Italians wherever possible in view of their low morale and because the Germans cannot hold extended fronts without them."

The intention was for the 4th New Zealand Brigade and 5th New Zealand Brigade (on 4th Brigade's right) to attack north-west to seize the western part of the ridge and on their right the Indian 5th Infantry Brigade to capture the eastern part of the ridge in a night attack.
Then 2nd Armoured Brigade would pass through the centre of the infantry objectives to exploit toward Deir el Shein and the Miteirya Ridge.
On the left, the 22nd Armoured Brigade would be ready to move forward to protect the infantry as they consolidated on the ridge.

The attack commenced at 23:00 on 14 July.
The two New Zealand brigades shortly before dawn on 15 July took their objectives, but minefields and pockets of resistance created disarray among the attackers.
A number of pockets of resistance were left behind the forward troops' advance which impeded the move forward of reserves, artillery, and support arms.
As a result, the New Zealand brigades occupied exposed positions on the ridge without support weapons except for a few anti-tank guns.
More significantly, communications with the two British armoured brigades failed, and the British armour did not move forwards to protect the infantry.
At first light, a detachment from 15th Panzer division's 8th Panzer Regiment launched a counter-attack against New Zealand 4th Brigade's 22nd Battalion.
A sharp exchange knocked out their anti-tank guns and the infantry found themselves exposed in the open with no alternative but to surrender.
About 350 New Zealanders were taken prisoner.

While the 2nd New Zealand Division attacked the western slopes of Ruweisat Ridge, the Indian 5th Brigade made small gains on Ruweisat ridge to the east.
By 07:00, word was finally got to 2nd Armoured Brigade which started to move north west.
Two regiments became embroiled in a minefield but the third was able to join Indian 5th Infantry 5th Brigade as it renewed its attack.
With the help of the armour and artillery, the Indians were able to take their objectives by early afternoon.
Meanwhile, the 22nd Armoured Brigade had been engaged at Alam Nayil by 90th Light Division and the Ariete Armoured Division, advancing from the south.
While—with help from mobile infantry and artillery columns from 7th Armoured Division—they pushed back the Axis probe with ease, they were prevented from advancing north to protect the New Zealand flank.

Seeing the Brescia and Pavia under pressure, Rommel rushed German troops to Ruweisat.
By 15:00, the 3rd Reconnaissance Regiment and part of 21st Panzer Division from the north and 33rd Reconnaissance Regiment and the Baade Group comprising elements from 15th Panzer Division from the south were in place under Lieutenant-General (General der Panzertruppe) Walther Nehring.
At 17:00, Nehring launched his counter-attack.
4th New Zealand Brigade were still short of support weapons and also, by this time, ammunition.
Once again, the anti-tank defences were overwhelmed and about 380 New Zealanders were taken prisoner including Captain Charles Upham who gained a second Victoria Cross for his actions including destroying a German tank and several guns and vehicles with grenades despite being shot through the elbow by a machine gun bullet and having his arm broken.
At about 18:00, the brigade HQ was overrun.
At about 18:15, 2nd Armoured Brigade engaged the German armour and halted the Axis eastward advance.
At dusk, Nehring broke off the action.

Early on 16 July, Nehring renewed his attack.
The 5th Indian Infantry Brigade pushed them back but it was clear from intercepted radio traffic
As the Axis forces dug in, Auchinleck—having drawn a number of German units to the coastal sector during the Tel el Eisa fighting—developed a plan—codenamed Operation Bacon—to attack the Italian Pavia and Brescia Divisions in the centre of the front at the Ruweisat ridge. Signals intelligence was giving Auchinleck clear details of the Axis order of battle and force dispositions. His policy was to "...hit the Italians wherever possible in view of their low morale and because the Germans cannot hold extended fronts without them."
The intention was for the 4th New Zealand Brigade and 5th New Zealand Brigade (on 4th Brigade's right) to attack north-west to seize the western part of the ridge and on their right the Indian 5th Infantry Brigade to capture the eastern part of the ridge in a night attack. Then 2nd Armoured Brigade would pass through the centre of the infantry objectives to exploit toward Deir el Shein and the Miteirya Ridge. On the left, the 22nd Armoured Brigade would be ready to move forward to protect the infantry as they consolidated on the ridge.
The attack commenced at 23:00 on 14 July. The two New Zealand brigades shortly before dawn on 15 July took their objectives, but minefields and pockets of resistance created disarray among the attackers. A number of pockets of resistance were left behind the forward troops' advance which impeded the move forward of reserves, artillery, and support arms. As a result, the New Zealand brigades occupied exposed positions on the ridge without support weapons except for a few anti-tank guns. More significantly, communications with the two British armoured brigades failed, and the British armour did not move forwards to protect the infantry. At first light, a detachment from 15th Panzer division's 8th Panzer Regiment launched a counter-attack against New Zealand 4th Brigade's 22nd Battalion. A sharp exchange knocked out their anti-tank guns and the infantry found themselves exposed in the open with no alternative but to surrender. About 350 New Zealanders were taken prisoner.
While the 2nd New Zealand Division attacked the western slopes of Ruweisat Ridge, the Indian 5th Brigade made small gains on Ruweisat ridge to the east. By 07:00, word was finally got to 2nd Armoured Brigade which started to move north west. Two regiments became embroiled in a minefield but the third was able to join Indian 5th Infantry 5th Brigade as it renewed its attack. With the help of the armour and artillery, the Indians were able to take their objectives by early afternoon. Meanwhile, the 22nd Armoured Brigade had been engaged at Alam Nayil by 90th Light Division and the Ariete Armoured Division, advancing from the south. While—with help from mobile infantry and artillery columns from 7th Armoured Division—they pushed back the Axis probe with ease, they were prevented from advancing north to protect the New Zealand flank.
Seeing the Brescia and Pavia under pressure, Rommel rushed German troops to Ruweisat. By 15:00, the 3rd Reconnaissance Regiment and part of 21st Panzer Division from the north and 33rd Reconnaissance Regiment and the Baade Group comprising elements from 15th Panzer Division from the south were in place under Lieutenant-General (General der Panzertruppe) Walther Nehring. At 17:00, Nehring launched his counter-attack. 4th New Zealand Brigade were still short of support weapons and also, by this time, ammunition. Once again, the anti-tank defences were overwhelmed and about 380 New Zealanders were taken prisoner including Captain Charles Upham who gained a second Victoria Cross for his actions including destroying a German tank and several guns and vehicles with grenades despite being shot through the elbow by a machine gun bullet and having his arm broken. At about 18:00, the brigade HQ was overrun. At about 18:15, 2nd Armoured Brigade engaged the German armour and halted the Axis eastward advance. At dusk, Nehring broke off the action.
Early on 16 July, Nehring renewed his attack. The 5th Indian Infantry Brigade pushed them back but it was clear from intercepted radio traffic 
First Battle of El Alamein