Sensex Prediction for Tuesday, July 21 by experts: The Indian stock market closed lower on Monday, July 20, with the 30-share BSE Sensex tumbling over 440 points, dragged down by heavy selling in heavyweight banking stocks such as HDFC Bank and Axis Bank amid margin-related concerns and rising geopolitical tensions following a flare-up in US-Iran tensions.
Amid this, market analysts expect the benchmark index to remain in a consolidation phase on Tuesday, July 21, with investors closely tracking global cues and the ongoing earnings season. Traders will monitor key support levels near 77,600 and critical resistance near 78,300 to gauge further market direction.
Sensex at close on Monday, July 20
Sensex top gainers and losers on Monday, July 20
Sensex Prediction for Tuesday, July 21 by experts
While the key benchmark index recovered from its intraday lows, analysts expect volatility to persist on Tuesday, July 21, with investors closely tracking global cues and the ongoing earnings season.
Sachin Gupta, VP – Technical Research at Choice Equity Broking, Monday’s session witnessed a weak and volatile trading session as the benchmark index came under pressure following weak global cues.
“The index opened with a sharp gap-down at 77,368, nearly 783 points below the previous close of 78,151, reflecting cautious investor sentiment amid a broad-based sell-off across Asian markets. Although the index staged a recovery from the day’s low during the session, it failed to sustain higher levels and finally settled at 77,708.50, down 442.95 points (-0.57%), indicating continued selling pressure at higher levels,” he said.
From a price action perspective, Gupta said Sensex formed a recovery candle after opening with a significant gap-down, indicating buying interest emerging at lower levels. “However, the index failed to reclaim the day’s opening level and continued to trade below the key 200-day EMA, suggesting that the overall undertone remains cautious. The inability to sustain above the immediate resistance zone reflects that sellers are still active on every rise, while the recovery from the intraday low indicates support-based buying at lower levels,” he said.
From a technical perspective, Gupta noted that the Sensex remains in a consolidation phase following the recent sharp correction. “The index managed to recover from the day’s low but continues to face resistance at higher levels. It is currently trading above its 20-day, 50-day, and 100-day EMAs, indicating that the short- to medium-term trend remains positive and buying interest is intact despite the ongoing consolidation. However, the index is still trading below its 200-day EMA, which continues to act as a key long-term resistance level,” he said.
Immediate support is placed at 76,900–77,000, and a sustained break below this zone could extend the decline towards 76,500. On the upside, immediate resistance is seen around 78,400–78,500, and a decisive move above this zone could revive bullish momentum and pave the way for further upside, Gupta added.
Overall, Gupta stated the market continues to witness consolidation amid mixed global cues and persistent selling in banking and financial stocks. “While the broader medium-term trend remains stable as long as the index holds above the 76,900–77,000 support zone, near-term volatility is likely to remain elevated. Traders should closely monitor global market developments and key technical levels for further directional cues,” the analyst concluded.
Sensex Prediction for Tuesday, July 21 by Vipin Dixena
Vipin Dixena, a SEBI-registered analyst, said the benchmark continues to hold above an important short-term support despite Monday’s weakness.
“Sensex is trading slightly above the 50 EMA, indicating that the short-term trend remains positive despite the ongoing intraday profit booking. The index is holding above the key 77,600 support, while immediate resistance is placed at 78,300,” he said.
“RSI has cooled to around 50, reflecting neutral momentum after the recent pullback. As long as Sensex sustains above 77,600, the broader bullish bias remains intact and a fresh move towards 78,300 is possible. However, a decisive break below 77,600 could trigger additional selling pressure and drag the index towards lower support levels,” he stated.
Dixena further stated the investors are expected to remain focused on Q1 earnings announcements, with stock-specific developments likely to dictate the market’s near-term direction.
Broader markets, sectoral indices on Monday, July 20
Broader markets, however, closed higher with the BSE SmallCap Select index climbing 0.56 per cent and the MidCap Select index gaining 0.39 per cent.
Among sectors, Private Banks index declined the most by 2.15 per cent, followed by Top 10 Banks (1.89 per cent), Financial Services (0.97 per cent), Bankex (0.77 per cent) and MidSmall Private Banks Quality Tilt (0.60 per cent).
On the other hand, PSU Bank was the biggest gainer, rising by 2.96 per cent. Utilities (1.73 per cent), Power (1.48 per cent), Healthcare (1.11 per cent), Commodities (0.81 per cent), Metal (0.79 per cent) and Oil & Gas (0.76 per cent) also closed higher.
“Sectorally, the major laggards were Private Banks, Top 10 Banks, Financial Services, BANKEX, Auto, and Information Technology. Persistent selling in banking and financial stocks weighed heavily on the benchmark, while weakness in IT and Auto stocks further restricted the market’s recovery,” Gupta said.
On Friday, the Sensex bounced back 964.58 points, or 1.25 per cent, to settle at 78,151.45. The Nifty climbed 261.55 points, or 1.09 per cent, to end at 24,334.30.
(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.)
