Market Commentary (closing) for 20th July 2026 by Bajaj Broking Ltd
Market Closing Commentary
Indian benchmark indices opened with a gap-down and witnessed some recovery during the session; however, buying interest remained insufficient to sustain higher levels. Investor sentiment stayed cautious amid continued geopolitical tensions, elevated crude oil prices, and weaker-than-expected results from a major private bank, which weighed on the benchmark indices.
At close, the Nifty 50 gained 0.39% to settle at 24,238, while the Sensex advanced 0.57% to close at 77,708. On the sectoral front, Nifty PSU Bank, Pharma, and Healthcare emerged as the top-performing sectors, attracting strong buying interest. On the other hand, Private Banks and Realty remained the key laggards, with selling pressure following the earnings reaction in the banking space.
The broader market outperformed the benchmark indices, reflecting continued participation beyond large-cap stocks. The Nifty Midcap 100 index gained 0.60%, while the Nifty Smallcap 100 index advanced 0.16%, indicating selective buying across the broader market.
Nifty Outlook
Nifty opened on a negative note but managed to hold above the support area of 24,100-24,200 and witnessed a rebound in the second half to close the session marginally lower. It has formed a small bullish candle which remained contained inside previous session price range signaling consolidation amid stock specific action.
Going ahead, index holding above the support area of 24,100 will signal pullback towards the last week high of 24,367. A breakout above last week high will open further upside towards the 24,450 and 24,530 levels being the trendline resistance and high of current month, respectively. Failure to move above last week high will signal extension of the recent consolidation in the range of 24,350-24,000. Short term support is placed at 24,000-23,800 levels, being the confluence of the almost identical low of the last 5 weeks and 50 days EMA. Index holding above the support area will keep the bias positive.
Bank Nifty Outlook
Bank Nifty formed a small bullish candlestick pattern which remained contained inside previous session price range signalling consolidation. Index opened on a negative note, however it recovered taking support at previous session low to close around the 58,000 levels. Index in the last 5 weeks is seen consolidating in the range of 58,700-56,500. Going ahead a move above the June high of 58,700 would confirm a breakout from the ongoing consolidation and could trigger the next leg of the rally towards 59,300 and eventually 60,000 levels in the coming weeks. Failure to do so will signal extension of the last five weeks consolidation.
On the downside, 57,500 (Friday and Monday low and 20 days EMA) is expected to act as the immediate support, while the 56,500 zone, which coincides with the 20-week EMA and lower band of last five weeks range, remains the major support. If Bank Nifty sustains above these support levels, the broader trend is expected to remain positive.
Above views are of the author and not of the website kindly read disclaimer
