Indian stock market indices, the Nifty 50 and Sensex, are expected to start trade on July 21, 2025, on a muted note, mirroring mixed cues from global markets.
Market Performance and Expectations
On July 18, 2025, the Sensex closed at 81,757.73, a decrease of 501.51 points or 0.61%, while the Nifty 50 ended at 24,968.40, down by 143.05 points or 0.57%. Overall, between July 14 and July 18, the Sensex declined by 605.35 points (0.73%), and the Nifty fell by 103.30 points (0.41%). The Gift Nifty was trading around 25,019, indicating a slightly negative opening for the Indian benchmark index.
The Indian stock market has been undergoing a correction for the third consecutive week. Weak earnings from IT and financial companies have contributed to this downturn, and traders are closely monitoring developments in US-India trade tariff discussions.
Factors Influencing Market Sentiment
Several factors are expected to influence the Indian stock market on July 21, 2025:
- Global Cues: Mixed signals from global markets are likely to set the tone for Monday's trading session. Asia-Pacific markets exhibited mixed performance as investors assessed China's policy signals and tracked trade developments.
- Q1FY26 Earnings: The earnings reports of major companies, including Reliance Industries, HDFC Bank, and ICICI Bank, will be closely watched for direction.
- US-India Trade Talks: Developments regarding trade discussions between the US and India will continue to be a key factor.
- FII Flows: Foreign institutional investors (FII) have been net sellers, pulling out over ₹17,000 crore in July, which could pressure the markets.
- Technical Levels: The Nifty 50 faces immediate support in the 24,900-24,650 range and resistance near 25,250. A decisive move above 25,250 is crucial for any bullish reversal. For the Bank Nifty, 55,500 will act as a crucial support area; a break below this level could intensify selling pressure.
Expert Opinions
- According to Amol Athawale, VP-technical Research, Kotak Securities, the short-term market texture is weak. A fresh sell-off may occur if the Sensex dismisses 81,600, potentially retesting 80,700-80,400 levels. Resistance is expected at 82,100-82,300.
- Ajit Mishra, SVP, Research, Religare Broking, expects the index to remain in a consolidation phase with a negative bias in the near term. He advises traders to focus on stocks showing strong earnings performance and relative strength. He believes that metal, pharma, and realty sectors appear relatively stronger, while auto and energy may consolidate.
Stock Recommendations
Sumeet Bagadia, Executive Director at Choice Broking, has recommended buying the shares of Nestle India, ICICI Bank, and Hindalco Industries on Monday, July 21, 2025.
Overall Market Sentiment
Overall market sentiment remains weak. Technical indicators signal short-term bearishness, but oversold readings may trigger relief bounces. Traders are advised to stay selective and focus on stocks showing strong earnings performance.
