Nifty 50, Sensex prediction today: Check how Indian stock market is expected to trade on 21 July

The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower on Tuesday, tracking mixed global market cues, amid cautiousness over the escalating US-Iran war in the Middle East.

The trends on Gift Nifty also indicate a weak start for the Indian benchmark index. The Gift Nifty was trading around 24,147 level, a discount of nearly 112 points from the Nifty futures’ previous close.

On Monday, the Indian stock market ended lower, with the benchmark Nifty 50 closing below 24,300 level.

The Sensex dropped 442.93 points, or 0.57%, to close at 77,708.52, while the Nifty 50 settled 95.80 points, or 0.39%, lower at 24,238.50.

Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:

Sensex formed a recovery candle after opening with a significant gap-down, indicating buying interest emerging at lower levels.

“From a technical perspective, Sensex’s trading range has narrowed, but a decisive breakout is still awaited. The key levels to watch remain 76,800 on the downside and 78,300 on the upside. As long as these levels remain intact on a closing basis, stock-specific action is likely to dominate,” said Shrikant Chouhan, Head of Equity Research, Kotak Securities.

He believes a close below 76,800 could open the doors for a decline towards 76,200, whereas a sustained move above 78,300 may pave the way for a retest of 78,700.

“The preferred strategy is to reduce weak long positions in the 78,300 – 78,600 zone, while remaining selective in accumulating quality stocks on declines,” added Chouhan.

In the derivatives segment, the PCR is at 1.09, reflecting a mildly positive undertone.

“Strong Put Open Interest (OI) 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,” said Sachin Gupta, VP - Technical Research at Choice Broking.

Nifty 50 formed a small-bodied candle on the daily chart and closed within the previous session’s range, reflecting continued indecision.

“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,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

According to him, the near-term uptrend of Nifty 50 is still intact, and as long as it holds 24,000 levels during its ongoing consolidation, the index is expected to bounce back towards 24,350 - 24,400 levels again in the near term. Immediate supports to be watched is at 24,000 levels.

Mayank Jain, Market Analyst, Share.Market by PhonePe said that the support for Nifty 50 lies at 23,850 – 23,950 levels, which remains the primary structural demand zone on the technical chart.