The Nifty50 extended its decline for a second consecutive session on Tuesday, closing 96 points lower at 24,238 after opening 144 points lower and remaining under pressure below the 24,300 mark throughout the session. According to reports from CNBC TV18, the benchmark index touched an intraday low of 24,136 and high of 24,266 before closing within the previous session's range. Despite finding support near its 100-day exponential moving average (100-DEMA), the index failed to sustain the rebound and settled below the crucial 24,200 mark. The index formed a small-bodied green candle with upper and lower shadows, reflecting continued indecision in the market. On July 20, the market gave up some of its previous day's gains, with the Nifty 50 falling 0.4 percent amid selling pressure in range-bound trading, trading within Friday's range of 24,100-24,370 and defending its 100-day EMA at 24,135 on a closing basis for the second straight session.
Among Nifty constituents, Shriram Finance, Bajaj Finserv and Eicher Motors emerged as the top gainers, while HDFC Bank, Infosys and SBI emerged as the biggest drags, as reported by CNBC TV18. Sectoral performance remained mixed, with realty, auto and metal stocks ending in the green, while PSU banks, IT and oil & gas were the worst-performing sectors. The broader market continued to outperform the benchmark, with the Nifty Midcap 100 rising 0.3% and the Nifty Smallcap 100 gaining 0.53%. The banking index also gave up part of Friday's gains, declining 576 points or 0.98% to close at 57,945.
According to technical analysis from CNBC TV18, Kotak Securities and latest market data, analysts believe the Nifty's short-term trend remains choppy with a weak bias. Shrikant Chouhan of Kotak Securities noted that the index's trading range has narrowed to less than 200 points over the past five sessions, reflecting a sharp decline in volatility. He expects immediate resistance around 24,350-24,400, with 24,000 remaining a key support level. Nagaraj Shetti of HDFC Securities noted that the index's trading range has narrowed to less than 200 points over the past five sessions, reflecting a sharp decline in volatility. He expects immediate resistance around 24,530, with 24,000 remaining a key support level. The latest technical analysis confirms that the 24,135 level is likely to act as the immediate support for the index, followed by the psychological 24,000 mark, which also roughly coincides with the 20-day EMA. On the higher side, the 24,350-24,400 zone is expected to remain a crucial resistance area for any further upmove towards 24,500-24,600, the previous swing highs, where the 200-day EMA is placed.
According to the latest options data, the 24,200 strike holds the maximum Put open interest with 1.34 crore contracts, which can act as a key support level for the Nifty in the short term. It was followed by the 24,000 strike with 1.29 crore contracts and the 24,100 strike with 1.11 crore contracts. The 24,500 strike holds the maximum Call open interest with 1.15 crore contracts, which can act as a key resistance level, followed by the 24,300 strike with 87.92 lakh contracts and the 24,400 strike with 72.32 lakh contracts. The Nifty Put-Call ratio (PCR) fell to 1.28 on July 20 from 1.42 compared to the previous session, indicating that traders are selling more Put options than Call options, which generally indicates the firming up of a bullish sentiment in the market. The India VIX declined 1.29% to 12.98 and remained below its key moving averages, which is supportive for bulls as long as it stays below the 15 mark.
Vinay Rajani of HDFC Securities has recommended buying L&T Finance and HAL stocks for today's trading session. For L&T Finance, he suggests buying at ₹306 with a stop loss at ₹300 and target of ₹315, noting that the primary trend has been bullish as the stock has been trading above all key moving averages and has formed a bullish "Hammer" candlestick pattern. For HAL, he recommends buying at ₹4,580 with a stop loss at ₹4,500 and target of ₹4,725, highlighting that the stock price has surpassed its previous swing high resistance of ₹4,535 and closed above it with a jump in volumes, while indicators and oscillators have turned bullish on the daily and weekly charts. According to Enrich Money's Ponmudi R, the index showed signs of weakening momentum during the session, with the 57,600-57,500 zone acting as immediate support for Bank Nifty. Meanwhile, SBI Securities' Sudeep Shah noted that the broader trend remains positive despite the day's subdued performance, as Bank Nifty continues to trade above its key short-term and medium-term moving averages. As reported by CNBC TV18 and Kotak Securities, market participants are expected to remain focused on the ongoing Q1 FY27 earnings season, while geopolitical developments in West Asia, elevated Brent crude prices near $90 per barrel, continued FII selling, rupee weakness and global market sentiment are likely to dictate near-term direction.
