Sensex Down 13 Points, Nifty at 25,060; Nifty Prediction for Tomorrow

Stock Market Today: Indices End Flat Amid Sectoral Weakness; What to Expect on July 23

Indian equity benchmarks closed on a flat note in a volatile trading session on Monday, July 22, as gains in select heavyweights were offset by broad-based selling across sectors.

Despite a mild recovery attempt in the second half of the session, investor sentiment remained cautious, especially amid weak global cues and concerns over valuations.

At the closing bell, the BSE Sensex dipped marginally by 13.53 points or 0.02% to settle at 82,186.81, while the Nifty 50 declined 29.80 points or 0.12% to end at 25,060.90.

The muted performance reflects a broader trend of consolidation, with traders awaiting clearer signals for the market’s next directional move.

Market Breadth and Sectoral Performance

Market breadth remained negative, indicating that more stocks were declining than advancing. On the Bombay Stock Exchange, 2,126 stocks ended in the red, 1,724 closed in the green, while 172 stocks remained unchanged, underscoring the overall bearish tone of the market.

All sectoral indices ended in the red, dragged down by weakness in media, PSU banks, and realty stocks. The details are as follows:

• Nifty Media Index: -2.5%
• Nifty PSU Bank Index: -1.6%
• Nifty Realty Index: -1.0%
• Nifty Pharma Index: -0.9%
• Nifty Auto Index: -0.6%

Even defensives such as pharma and FMCG failed to attract safe-haven buying, suggesting that investors are staying on the sidelines amid lack of fresh triggers.

Meanwhile, the BSE Midcap index fell by 0.6%, while the Smallcap index also ended lower, reflecting weakness across the broader market.

Top Performers and Drags on Nifty

Among Nifty constituents, some stocks managed to buck the trend and ended in the green. The top gainers included:

• Eternal
• HDFC Life Insurance
• Titan Company
• Hindalco Industries
• Bharat Electronics Ltd (BEL)

On the other hand, some key laggards weighed down the index:

• Shriram Finance
• Jio Financial Services
• Eicher Motors
• Adani Ports
• Tata Motors

Expert View: What’s Driving the Market?

VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlighted two major factors providing a cushion to the market:

1. Global Market Tailwinds: The US market continues to remain buoyant, with the S&P 500 setting record highs on ten different occasions so far this year. This strength in global equities, particularly in the US, provides psychological support to Indian markets by sustaining a risk-on sentiment.
2. Robust Domestic Liquidity: Domestic Institutional Investors (DIIs) have been relentless buyers through the month. In 14 out of 15 trading sessions in July, DIIs have infused capital into the market, helping absorb selling pressure from Foreign Institutional Investors (FIIs), who have been net sellers in 10 out of 15 sessions.

This DII-driven liquidity has so far helped the market withstand global uncertainties, but the sustainability of this trend will depend on corporate earnings, inflation data, and global interest rate expectations.

Technical Outlook: Support and Resistance Levels

From a technical standpoint, the market is currently in a consolidation phase with a bearish bias in the short term.

According to Dhupesh Dhameja, Derivatives Research Analyst at Samco Securities, the short-term trend remains negative, but crucial support zones are now emerging.

• Immediate Support Zone: 25,200 – 25,320 on the Nifty
• Critical Floor Level: 24,800 – a close below this level could trigger sharper corrections
• Resistance Zone: 25,250 – a decisive close above this level is required to negate the bearish trend and revive upward momentum

“As long as the Nifty holds above 24,800, buyers are likely to defend the market. However, a sustained move above 25,250 is essential for the index to shift its momentum in favor of the bulls,” Dhameja noted.

Global Cues and Earnings Season in Focus

Market participants are also keeping a close eye on global macroeconomic developments. With the US Federal Reserve’s next interest rate decision approaching, and inflation data from Europe and the US due later this week, traders are likely to tread cautiously.

On the domestic front, the ongoing Q1 FY25 earnings season will play a critical role in determining sectoral leadership and broader market direction.

While IT majors have delivered mixed results, investor focus will now shift to banking, auto, and FMCG sectors for cues on consumption and credit growth trends.

What to Watch on July 23

As the market heads into the July 23 session, here are the key factors to watch:

• Global Market Performance: Overnight trends in the US and Asian markets will likely influence early morning sentiment.
• Institutional Flow: FII and DII activity will remain critical — sustained DII inflows could continue to stabilize the market.
• Technical Action: Watch whether the Nifty holds the 25,200–25,320 zone. A bounce from here could spark a short-covering rally, while a breach could intensify selling pressure.
• Stock-specific Moves: Mid-tier and smallcap counters could continue to face pressure unless there is a turnaround in sentiment or strong earnings support.

Final Thoughts

Monday’s flat close on the Indian bourses reflects a market that is caught between supportive liquidity and macroeconomic uncertainty.

While strong DII buying and positive global cues offer a cushion, sectoral weakness and cautious technical patterns are keeping bulls in check.

For the short term, Nifty’s ability to sustain above 25,200 and break above 25,250 will determine whether the market resumes its upward momentum or continues to consolidate.

Until then, traders are advised to remain selective, stay nimble, and closely monitor both global trends and key technical levels.