Stock Market Highlights Today: Nifty ends at 24,162 as banks drag, midcaps gain – 21 July 2026

Indian equities ended lower on Tuesday, with the Nifty 50 slipping 76 points to 24,162 and the Sensex losing 283 points to 77,425, as weakness in banking and IT stocks offset gains in select autos and metals despite softer crude prices and resilient broader markets.

Broader indices outperformed, with midcaps and smallcaps closing in the green, while foreign investors trimmed positions in Nifty Bank futures after margin compression at major private lenders.

Market Overview

Index	21 Jul 2026 Close	Move & % Change	Comments
Sensex	77,425.24	-283 pts (-0.36%)	Dragged by private banks and IT despite intraday recovery attempts.
Nifty 50	24,162.35	-76 pts (-0.31%)	Stayed below 24,250 as banking weakness capped upside.
Bank Nifty	57,864.45	-81 pts (-0.14%)	Closed near 57,865 after FPI futures selling and mixed bank earnings.
Nifty Midcap 100	approx. 63,000	+0.24%	Continued to outperform large caps, stayed above key moving averages.
Nifty Smallcap 100	approx. 19,300	+0.55%	Extended YTD gains, consolidating in a narrow range near recent highs.

• Sensex traded in the red for most of the session, slipping over 300 points intraday.
• Nifty 50 moved between the 24,100 support zone and the 24,250 mark.
• Bank Nifty fell about 1 percent on Monday to 57,945, then remained weak on Tuesday.
• Broader markets showed positive breadth, with advances outnumbering declines on the NSE.

Key Movers

Top Gainers (Nifty / Sensex heavyweights)

Stock	Sector	Notable Factor
Shriram Finance	NBFC	Among top Nifty gainers in a weak headline market.
Bajaj Finserv	Financials	Rebounded after recent pressure, supported broader financials ex‑banks.
InterGlobe Aviation	Airlines	Among top Nifty gainers as travel demand optimism supported sentiment.
UltraTech Cement	Cement	Rose around 1, 2% on Sensex amid sectoral strength in early trade.
HCL Technologies	IT	Outperformed peers, in Nifty gainers despite sector weakness.
ICICI Bank	Banking	Gained after strong June‑quarter earnings and higher NIMs.
Maruti Suzuki	Auto	Advanced about 1, 2% on Sensex, aiding auto index gains.
NTPC	Power	Closed higher, supporting defensives in a soft market.
IndiGo (InterGlobe)	Airlines	Listed as Sensex gainer in early trade, tracking aviation optimism.
ITC	FMCG	Added around 1, 2% on Sensex, cushioning index losses.

• ICICI Bank reported June‑quarter consolidated net profit growth of about 14 percent year on year.
• Strong credit growth and higher NIMs at ICICI Bank contrasted with margin pressure at peers.

Top Losers (Nifty / Sensex heavyweights)

Stock	Sector	Notable Factor
HDFC Bank	Banking	Fell over 5% after Q1 results showed NIM compression and underwhelmed investors.
Axis Bank	Banking	Dropped between 2% and 5.5% after earnings, weighed on Bank Nifty.
Kotak Mahindra Bank	Banking	Declined 2, 5.5% amid concerns over margins and funding costs.
Infosys	IT Services	Part of top Nifty losers as IT index faced selling pressure.
TCS	IT Services	Declined on cautious sentiment towards large‑cap IT earnings.
Reliance Industries	Energy	Among Nifty laggards, pressuring headline indices.
Bajaj Auto	Auto	Listed as Nifty loser despite strong reported Q1 earnings.
Bajaj Finserv	Financials	Fell 1, 2% on Sensex in early trade before broader recovery.
HCL Technologies	IT	Also cited as Sensex loser intraday amid sector volatility.
SBI, M&M, Trent	Various	Dropped 1, 2% on Sensex, adding to index weakness.

• HDFC Bank’s NIM fell to 3.26% in Q1 from 3.4% in the previous quarter.
• Axis Bank was earlier the biggest Sensex loser, plunging 5.48% on Monday after results.

Sectoral Action

Sector / Index	Direction (approx.)	Key Drivers
Nifty IT	down	Faced selling pressure amid cautious global tech sentiment.
Nifty FMCG	down	Witnessed profit‑taking despite defensive appeal.
Nifty PSU Bank	down	Traded in the red with broader banking weakness.
Nifty Private Bank	down	Hit by HDFC Bank and Axis Bank declines after margin compression.
Nifty Oil & Gas	down	Soft despite lower crude, reflecting earnings and valuation concerns.
Nifty Metal	up	Saw gains, supported by selective buying in cyclicals.
Nifty Pharma	up	Benefited from defensive positioning in a volatile tape.
Nifty Realty	up	Advanced on expectations of sustained demand and lower rate fears.
Nifty Auto	up	Helped by Bajaj Auto and Maruti Suzuki strength.

• Sectoral trends were described as muted, with financials and IT leading losses.
• Broader market outperformance showed ongoing rotation into mid and small caps.

Technical Outlook

• According to Axis Securities, the highest Nifty Call open interest is at 24,500, followed by 24,300, indicating resistance.
• On the Put side, highest OI at 24,200 and 24,000 suggests immediate support zones.
• At‑the‑money Nifty option premium of ₹363 implies a weekly trading band of 23,800, 24,650.
• Rajesh Palviya of Axis Direct pegs key resistance at 24,300, 24,400, coinciding with the 200‑day EMA.
• Immediate support is seen at 24,100, with a break opening downside towards 24,000.
• A decisive move above 24,400 could pave the way for 24,500, 24,600.
• For Nifty Bank, consultant Sudhir Joshi expects a range of 56,000, 61,000, with domestic buying on dips.

Nifty Options Strategy Highlight

• Axis Securities recommends a Bull Call Spread on Nifty for 28 July 2026 expiry.
• Strategy: Buy 24,250 Call at ₹170, ₹190, sell 24,500 Call at ₹75, ₹95.
• Break‑even point is 24,349 on the index.
• Maximum potential risk is ₹6,435, maximum reward ₹9,815 per strategy.
• Brokerage advises entering and exiting both legs together and squaring off before expiry.

Midcap and Smallcap Performance

• Year to date, Nifty Midcap 100 is up 3.89%, while Nifty Smallcap 100 has gained 9.48%.
• Over the same period, the Nifty 50 has declined 7.59%, showing broader market outperformance.
• Analysts expect mid and small caps to deliver stronger Q1 FY27 earnings growth than large caps.
• Drivers include healthier operating leverage, business expansion and favourable long‑term prospects.
• “Fundamentally strong businesses with sustainable growth prospects and reasonable valuations are well positioned to outperform,” said Sunny Agrawal, Head of Fundamental Research at SBI Securities.
• Nifty Midcap 100 trades above its 20‑day EMA, with resistance at 63,100, 63,200 and support at 62,350, 62,300.
• Nifty Smallcap 100 is consolidating in the 19,115, 19,471 band, with RSI near 60 indicating a pause.

Global Cues and Macro Drivers

Market / Asset	Movement	Notes
Brent crude	around $88, slightly lower	Eased from one‑month highs on US‑Iran mediation hopes.
WTI crude	around $82	Traded below $90 as ceasefire talks weighed on prices.
Asian equities	mixed to higher	Benefited from softer oil and focus on earnings.

• Mediation efforts between the US and Iran reportedly include a proposal for a 10‑day ceasefire.
• Yemen’s Houthis threatened a naval blockade on Saudi Arabia, keeping energy risk elevated.
• VK Vijayakumar of Geojit Investments said crude trends will unduly influence markets in the near term.
• He noted that FPI selling is being absorbed by domestic institutional buying.
• Dollar inflows via the concessional swap facility have crossed $20 billion, supporting the rupee.

Banking Earnings and FPI Positioning

• FPIs net sold ₹1,201 crore of Nifty Bank futures on Monday after being net buyers on Friday.
• They also sold about ₹1,121 crore in the cash market on the same day, according to provisional data.
• Most private banks reported NIM compression in Q1 despite higher profits from lower provisioning.
• HDFC Bank carries a 19.3% weight in Nifty Bank, ICICI Bank about 14.16% as of 30 June.
• “There is some caution among FPIs as low‑cost funds of some banks are falling, raising cost of funds,” said Sudhir Joshi, consultant at Khambatta Securities.
• Joshi views FPI futures selling as a hedge against price uncertainty in financials, which form 31% of FPI equity assets.
• “Valuations of the likes of HDFC Bank are compelling, and any further correction of 1, 2% will be a good buying opportunity,” said Dr V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Earnings Season and Nifty Fair Value

• According to Nimesh Chandan of Bajaj AMC, Q1 FY27 earnings have so far been stronger than initially expected.
• He estimates the intrinsic value of the Nifty around 27,000, indicating room above current levels.
• Market participants expect crude prices, banking earnings and geopolitical developments to guide near‑term direction.
• Any moderation in oil prices or easing of regional tensions could aid a recovery in risk sentiment.

Frequently Asked Questions

Why did Nifty close lower today despite softer crude oil prices?

Nifty fell as declines in HDFC Bank, Axis Bank and large IT stocks outweighed the positive impact of lower crude and gains in autos, metals and select defensives, keeping the index below key resistance near 24,300.

How are midcap and smallcap indices performing compared with the Nifty 50 in 2026?

Year to date, Nifty Midcap 100 is up about 3.9 percent and Nifty Smallcap 100 around 9.5 percent, while the Nifty 50 has declined about 7.6 percent, showing stronger earnings expectations and investor preference for broader markets.

What is the current technical outlook for Nifty and Bank Nifty?

Analysts see Nifty in a consolidation phase with support at 24,100 and resistance at 24,300, 24,400, while Bank Nifty is expected to trade between 56,000 and 61,000, with FPI futures selling seen largely as a hedge and domestic investors buying on dips.