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The Indian stock market experienced a volatile session on Monday, July 21, initially succumbing to early losses before staging a significant recovery. This turnaround was primarily driven by positive sentiment surrounding heavyweight banking stocks, particularly ICICI Bank and HDFC Bank, which provided crucial support to the benchmark indices. At 12:05 p.m., the Sensex was trading at 82,030.55, reflecting a gain of 272.82 points or 0.33 percent, while the Nifty stood at 25,033.60, up by 65.20 points or 0.26 percent. The market breadth was slightly negative, with 1681 shares advancing against 1825 shares declining and 167 shares remaining unchanged, indicating a mixed sentiment among individual stocks. The sectoral performance presented a varied picture. The Nifty Auto index saw a modest increase of 0.4 percent, while the Nifty Metal index emerged as the top performer, rising by 1.04 percent, buoyed by positive global commodity cues. The Bank Nifty index rallied by 0.9 percent, primarily supported by the strong earnings performance of ICICI Bank and HDFC Bank. Conversely, the Nifty Pharma index experienced a decline of 0.3 percent, partially reversing its recent gains. The Nifty IT index continued its underperformance, falling by 0.4 percent, reflecting ongoing weakness in global technology sentiment. The Nifty FMCG index also declined by 0.6 percent, weighed down by profit booking in heavyweight stocks. The Nifty PSU Bank index was the worst hit, shedding 0.7 percent after a strong rally in recent sessions. The overall performance of banking stocks was mixed, influenced by a series of earnings announcements made over the weekend. While blue-chip index heavyweights like HDFC Bank and ICICI Bank traded firmly in the green, smaller peers such as RBL Bank and Union Bank experienced downward pressure. The Bank Nifty index saw a gain of almost one percent, with HDFC Bank and ICICI Bank making substantial contributions to the index's rise. Other constituents that recorded gains included Kotak Bank and IDFC First Bank, while the remaining banks dragged the index down. Market analysts are closely monitoring the ongoing trade talks between the United States and India. According to VK Vijayakumar, Chief Investment Strategist at Geojit Investments, the outcome of these talks will be a crucial factor influencing market sentiment in the coming days. An interim trade deal between the two countries with a tariff rate of less than 20 percent on Indian goods would be viewed favorably by the market. From a technical analysis perspective, the immediate support level for the Nifty is placed at 24,917, with a stronger support zone lying within the 24,850–24,700 range. A break below this zone could potentially trigger increased selling pressure. On the upside, the 25,000 level is currently acting as immediate resistance, while a decisive breakout above the 25,150–25,250 range is necessary to resume the bullish trend. Given the prevailing environment of elevated volatility and mixed global cues, traders are advised to adopt a cautious sell-on-rise strategy, particularly when utilizing leverage. Mandar Bhojane, Senior Technical & Derivative Analyst - Research at Choice Equity Broking Private, recommends booking partial profits during rallies and maintaining tight trailing stop-losses to effectively manage risk. He suggests that fresh long positions should only be considered if the Nifty sustains above the 25,000 level. While the broader market undertone remains cautiously bullish, it is essential to closely monitor key technical levels and macro developments. Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.