Stock recommendations for 22 July from MarketSmith India

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Stock market recap: The Indian stock market ended lower on Tuesday, 21 July, with the benchmarks, the Sensex and the Nifty 50, extending losses for the second consecutive session as escalating tensions West Asia and rising crude oil prices continue to weigh on market sentiment.

The Sensex ended 238 points, or 0.31%, lower at 77,470.11, while the Nifty 50 settled at 24,187.70, falling 51 points, or 0.21%. The mid and small-cap segments continued their outperformance on expectations of healthy Q1 earnings. The Nifty Midcap 100 index rose by 0.30%, while the Smallcap 100 index climbed 0.53%.

Two stock recommendations by MarketSmith India:

Buy: City Union Bank Ltd (current price: ₹230)

State Bank of India (current price: ₹1,044)

Indian equities ended marginally lower on July 21st, 2026, with Nifty 50 closing at 24,187.70, down 50.80 points (-0.21%), after trading in a narrow range of 24,135.65–24,262.20 as investors remained cautious amid mixed global cues and the ongoing Q1 earnings season.

However, market breadth remained positive, with 1,812 stocks advancing, 1,505 declining, and 119 remaining unchanged, indicating continued buying interest in the broader market despite weakness in the frontline indices. On the sectoral front, Nifty Realty (+1.07%), Auto (+0.93%), Metal (+0.63%), Healthcare (+0.35%), and Pharma (+0.34%) outperformed.

On the other hand, PSU Bank (-0.88%), IT (-0.61%), Oil & Gas (-0.50%), Consumer Durables (-0.38%), and FMCG (-0.31%) ended in the red. Stock-specific action dominated the session as earnings expectations drove rotation across sectors.

Nifty 50 continues to trade in a consolidation phase while holding firmly above its 21-DMA, indicating that the short-term bullish structure remains intact despite the lack of strong directional momentum. The RSI is around 54, remaining above the neutral 50 mark, indicates healthy momentum without entering overbought territory. Meanwhile, the MACD remains in positive territory, although the histogram has flattened and the signal lines are moving closer together, indicating that bullish momentum has moderated but has not reversed.

The index continues to consolidate within 24,100–24,400, reflecting a phase of healthy consolidation after the recent recovery. A sustained move above the upper end of this range would reinforce the prevailing bullish bias and could open the door for a rally toward 24,500–24,600. On the downside, 24,000–23,800 remains a crucial demand area and will be closely watched for signs of buying interest. If the index holds above this zone, the broader short-term trend is likely to remain constructive.

However, a decisive breakdown below this demand band could weaken market sentiment and trigger fresh selling pressure, potentially dragging the index toward 23,600–23,500.

Nifty Bank opened on a negative note and witnessed mild buying interest in the early session, pushing it to an intraday high before profit booking emerged at higher levels. The index opened at 57,853.75, touched an intraday high of 58,228.65, slipped to a low of 57,803.85, and finally settled at 57,835.35, down 109.65 points (-0.19%). Despite the weak close, the index continued to trade above all its key moving averages, indicating that the broader trend remains constructive.

The recent price action reflects a narrow consolidation range, with small-bodied candlesticks suggesting indecision as buyers and sellers await a decisive directional trigger near the current resistance zone.

The RSI is currently at 53.96, remaining above the neutral 50 mark, indicating that momentum continues to favour the bulls despite some short-term cooling. However, the RSI has eased from recent higher levels, suggesting that upward momentum has moderated. Meanwhile, the MACD remains above the zero line, confirming that the broader trend is still positive.

Although the indicator continues to witness a negativ...