The market is likely to remain in a consolidation phase, with the Nifty 50 expected to trade in the 24,000-24,400 range in the short term. However, the broader structure remains healthy, supporting a buy-on-dips strategy and signalling a high probability of the index eventually moving towards the 24,700-24,800 levels, unless there is a drastic change in crude oil prices or the Indian rupee. The immediate crucial support is seen in the 24,100-24,000 zone, while the 24,300-24,400 zone is likely to act as the hurdle on the higher side. Meanwhile, the Bank Nifty needs a strong breakout above the 58,600-58,700 zone for a sharp upmove. Until then, it may remain range-bound, with immediate key support at 57,600-57,300. A break below this zone could trigger short-selling pressure in the index, according to experts.
On July 21, the Nifty 50 slipped 51 points (0.21 percent) to 24,188, while the Bank Nifty dropped 110 points (0.19 percent) to 57,835. However, the market breadth was marginally positive as about 1,557 shares saw buying interest compared to 1,415 shares that were under pressure on the NSE.
Nifty Outlook and Strategy
Ashish Kyal, Founder and CEO of Waves Strategy Advisors
Nifty has been consolidating within a range over the past few weeks. It is interesting to note that despite the sharp rise in crude oil prices, which moved from the lows to a high of $92 per barrel, and despite the depreciation of the Indian rupee, the Nifty has managed to sustain above the 24,000 level. This indicates relative outperformance.
However, the index is yet to witness any meaningful momentum. A break above 24,250 is required to confirm a momentum breakout. On the downside, the immediate support is around 24,100. A break below 24,100 could lead to short-term selling pressure. Until then, it is better to stay on the sidelines.
Eventually, the market is expected to move higher towards the 24,728 level, although this will largely depend on overnight developments. Investors should also keep in mind the overnight risks arising from the ongoing geopolitical tensions.
A break above 24,250 could take the Nifty towards 24,420, followed by the 24,728 Gann level. Immediate support is placed at 24,103, followed by 24,030.
Key Resistance: 24,500
Key Support: 24,030
Strategy: Long positions in Nifty Futures can be created if the index breaks above 24,250, with a stop-loss at 24,130 and targets of 24,420-24,500.
Preeti K Chabra, Founder of Trade Delta
The Nifty 50 continues to consolidate within a narrow range and has formed an NR3 (Narrow Range 3) pattern on the daily chart, indicating reduced volatility and the possibility of a sharp directional move once the current range is breached.
The index is trading above its 20-day SMA at 24,111 and 40-day EMA at 24,000, indicating that the broader trend remains constructive. These levels are expected to act as important support zones in the short term.
From a Fibonacci retracement perspective, the Nifty is trading between the 50 percent retracement level at 24,261 and the 38.2 percent retracement level at 23,771, derived from the decline between 26,341 and 22,182. This zone is likely to serve as a significant support and resistance area over the coming sessions.
The RSI stands at 54.05 and is trading marginally below its signal line, suggesting that the index may remain in a consolidation phase with a slight negative bias in the near term.
In the derivatives segment, options data remains broadly neutral, with no meaningful indication of either bullish or bearish dominance. Overall, the broader outlook remains buy on dips, with any corrective decline likely to present fresh buying opportunities.
Key Resistance: 24,261, 24,367
Key Support: 24,135, 24,099
Strategy: Consider buying Nifty Futures near the cash reference level of 24,135, with targets of 24,261 and 24,367, while maintaining a stop-loss at 24,099.
Mahesh M Ojha, Vice President Research & Business Development at Kantilal Chagganlal Securities
The Nifty 50 witnessed range-bound trading amid a lack of strong directional cues during the weekly expiry session. Technically, the index is expected to remain sideways unless it closes decisively above 24,300, which could trigger fresh buying momentum.
On the downside, 24,000 continues to act as a crucial support level. A breach below it may drag the index towards 23,800, which coincides with the 20-week moving average.
Immediate resistance is placed near the 24,490 zone, where the 100-week moving average aligns with a horizontal supply area. The RSI, at 54.05, indicates a neutral trend, suggesting consolidation with a slight positive bias in the near term.
Key Resistance: 24,263, 24,344, 24,421
Key Support: 24,080, 24,030, 23,920
Strategy: Buy Nifty July Futures in the 24,145-24,185 range, with a strict stop-loss below 23,980, and targets of 24,300, 24,480, and 24,600+.
Bank Nifty - Outlook and Positioning
Ashish Kyal, Founder and CEO of Waves Strategy Advisors
Over the past month, the Bank Nifty has remained trapped in a triangle pattern on the daily chart near the 61.8 percent Fibonacci retracement of the entire decline that began in February 2026, reflecting a prolonged phase of consolidation with no meaningful directional move.
The narrowing Bollinger Bands on the daily chart indicate declining volatility, highlighting the market's lack of momentum. The absence of major domestic or global triggers, coupled with mixed quarterly earnings from key banking stocks, has kept overall sentiment subdued.
Daily price action has continued to alternate between gains and losses, resulting in a range-bound market. A decisive breakout from the current triangle pattern is likely to determine the next directional move.
A decisive breach above 58,230, followed by 58,700, is required to revive bullish momentum. On the other hand, a break below 57,500 could trigger short-term selling pressure and lead to further weakness.
Key Resistance: 58,700
Key Support: 57,500
Strategy: Long positions in Bank Nifty Futures can be created above 58,230, with a stop-loss at 58,000 and a target of 58,700.
Preeti K Chabra, Founder of Trade Delta
Bank Nifty formed a Gravestone Doji-like candlestick on the daily chart, with the open, close, and low occurring within a narrow range. This pattern reflects selling pressure at higher levels and suggests indecision, warranting caution in the near term.
The index closed marginally above its 20-day SMA at 57,827, while continuing to trade comfortably above its 40-day EMA at 57,013, indicating that the broader trend remains constructive. These levels are expected to act as important support zones in the short term.
From a Fibonacci retracement perspective, the Bank Nifty is trading between the 61.8 percent retracement level at 57,253 and the 78.6 percent retracement level at 59,237, calculated from the decline between 61,764 and 49,954. This zone previously acted as an important support and resistance area and is likely to remain significant in the near term.
In the derivatives segment, unwinding of in-the-money (ITM) monthly Put positions points to a cautious undertone and reflects slightly bearish sentiment among market participants. Overall, the broader outlook remains buy on dips, with any corrective decline likely to present fresh buying opportunities as long as key support levels remain intact.
Key Resistance: 58,100, 58,250
Key Support: 57,550, 57,400
Strategy: Consider buying Bank Nifty Futures near the cash reference level of 57,550, with targets of 58,100 and 58,250, while maintaining a strict stop-loss at 57,400.
Mahesh M Ojha, Vice President Research & Business Development at Kantilal Chagganlal Securities
Bank Nifty witnessed consolidation following the earnings announcements of heavyweight banks. Despite the consolidation, the overall technical structure remains constructive, indicating the potential for further upside. The RSI, at 53.94, reflects mildly positive momentum, suggesting that buying interest could strengthen in the coming sessions.
The 57,000 level remains a crucial support, while the 200-DMA at 57,357 is expected to act as a strong base. As long as the index sustains above these levels, the bullish outlook remains intact.
Key Resistance: 58,080, 58.,220, 58,450
Key Support: 57,640, 57,500, 57,280