Nifty Prediction for Tuesday, July 21 by experts: Benchmark equity indices closed lower on Monday as banking and financial stocks came under heavy pressure amid geopolitical tensions between the United States and Iran. Despite the weakness in benchmark indices, technical analysts believe the Nifty’s broader trend remains positive and expect the index to resume its upmove if it continues to hold above the crucial 24,000 mark.
Nifty at close on Monday, July 20
Nifty top gainers and losers
Nifty Prediction for Tuesday, July 21 by experts
Market experts predict a range-bound but constructively positive session for Tuesday, provided global headwinds like rising crude prices and rupee depreciation don’t trigger a deeper breakdown.
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, said Monday’s decline appears to be a pause after Friday’s strong breakout rather than the beginning of a fresh downtrend.
“After showing a sharp breakout on Friday, Nifty was not able to continue with gains on Monday on the backdrop of escalation in middle east conflict, rising International Crude oil prices and Depreciation of INR against USD and Nifty closed the day lower amidst choppy movement,” he said
Shetti believes the near-term uptrend remains intact as long as the Nifty holds above 24,000. “A small green candle was formed on the daily chart, that closed beside the long bull candle of Friday. Technically, this market action indicates an inside day type candle formation which is reflecting a range bound movement in the market with weak bias. The negative global sentiment has not impacted much on our markets so far,” Shetti stated.
“The near-term uptrend of Nifty is still intact. As long as it holds 24000 levels during its ongoing consolidation, Nifty is expected to bounce back towards 24350-24400 levels again in the near term. Immediate supports to be watched at 24000 levels,” he added.
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Nifty daily chart – Monday, July 20
Sachin Gupta, VP – Technical Research at Choice Broking, also expects buying on declines to continue after the benchmark defended the 24,100-24,150 support zone during Monday’s session.
“Nifty 50 ended the session at 24238.50, declining 95.80 points (-0.39%) after a largely range-bound trading session marked by intermittent volatility. The index witnessed selling pressure during the first half and slipped towards its intraday low, but buying interest emerged near the 24,100–24,150 support zone, helping the benchmark recover a significant portion of its losses before closing off the day’s lows. The ability to defend key support levels reflects continued buying on declines, indicating that the broader market structure remains constructive despite the day’s weakness,” he said.
Technically, Gupta said Nifty continues to trade comfortably above its 20-day, 50-day and 100-day Exponential Moving Averages (EMAs), reinforcing the prevailing positive trend.
“Sector-wise, PSU Bank, Pharma, Healthcare and Media stocks outperformed, while Private Bank, Financial Services, Auto and IT remained under pressure, limiting the index’s upside. The RSI stands at 55.58, indicating that bullish momentum remains intact above the neutral mark,” he said.
In the derivatives segment, Gupta stated the PCR is at 1.09, reflecting a mildly positive undertone. “Strong Put Open Interest is concentrated at the 24,000–24,200 strikes, while Call Open Interest remains highest at the 24,300–24,500 strikes, suggesting immediate support at 24,100–24,150 and resistance at 24,300–24,350. A sustained move above the resistance zone could strengthen the near-term bullish outlook,” he concluded.
- 20-Day EMA – 24083.80
- 50-Day EMA – 23984.38
- 100-Day EMA – 24138.82
- 200-Day EMA – 24395.04
Nifty Prediction for Tuesday, July 21 by Om Mehra
Om Mehra, Technical Research Analyst, SAMCO Securities, stated Monday’s small-bodied candle reflects healthy consolidation after the recent rally rather than a reversal.
“Nifty ended the session at 24,238.50, down 0.39%, forming a small-bodied candle after the sharp rally seen over the previous two sessions. The pullback comes as the index digests Friday’s breakout, with the close still holding comfortably above the middle Bollinger Band, placed at 24,100. The index recovered from an intraday low of 24,136, recouping most of its losses during the second half of the session,” he said.
“RSI is placed at 55, holding above the 50 mark, although momentum has flattened. India VIX settled at 12.98,” he said.
“The immediate resistance is placed at 24,400, marking the upper Bollinger Band. On the downside, 24,100 now serves as the first support level, with 24,000 providing a stronger cushion if the pullback extends further,” Mehra added.
Broader markets, sectoral indices on Monday, July 20
Despite the weakness in the benchmark indices, the broader market outperformed. The Nifty MidCap index gained 0.6 per cent, while the Nifty SmallCap index ended 0.16 per cent higher.
Sectoral indices on the NSE ended on a mixed note. Nifty Auto declined 0.26 per cent, Nifty IT fell 0.22 per cent, and Nifty Private Bank dropped 2.27 per cent.
Nifty FMCG gained 0.65 per cent, Nifty Media rose 1.09 per cent, Nifty Metal advanced 0.86 per cent, Nifty Pharma added 1.40 per cent, while Nifty PSU Bank emerged as the top performer with a gain of 2.78 per cent.
On the other hand, the Nifty Pharma and Nifty PSU Bank indices ended with the strongest gains.
(Disclaimer: The above article is meant for informational purposes only and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
