Stock Market Technical Analysis | 20th to 24th July 2026 Weekly Wrap

Indian equity markets witnessed broad-based selling pressure during the week as banking stocks dragged benchmark indices lower despite resilience in select IT and auto stocks. Here's a comprehensive technical, derivatives, sectoral, and institutional flow analysis to help investors understand the key market trends for the upcoming week.

Expert recommendation by:

• Mr. Ketan Kaushik - Derivative Analyst

Equity

• Benchmark Index traded with negative bias in the previous week before closing with 2.33% cut at 23767 level. Banking Index underperformed the benchmark index as it closed with 3.12% cut at 56694 level.
• Among the Nifty constituents, BAJAJ_AUTO and HCLTECH outperformed the benchmark index as they closed with 6.58% and 5.57% gains while HDFCBANK and AXISBANK underperformed as they closed with 9.37% and 6.14% cut respectively. Among the Bank Nifty constituents PNB outperformed the benchmark index as it closed with 4.36% gain while HDFCBANK underperformed the benchmark index as it closed with 9.37% cut.
• Among sectors, NIFTYFMCG index outperformed the benchmark index during the previous week as it closed with 0.62% gain while NIFTYPVTBANK index underperformed as it closed with 4.32% cut. Broader market performed in line with the benchmark index as both MIDCAP index and SMALLCAP index closed with 1.29% and 2.18% cut respectively.
• Volatility index (India VIX) closed with 6.69% gain at 14.03 level.
• FII were net sellers as they sold stocks worth Rs 7,182 Cr while DII were net buyers as they bought stocks worth Rs 8,638 Cr during the previous week in the cash segment.
• Globally, equity markets traded mixed as US market (DJIA) closed with 0.38% cut while European market (STOXX 600) closed with 0.46 gain.

Derivatives

• Derivatives data for Nifty suggest max OI addition at 24800 call and 23700 put side with max OI at 25000 call and 23000 put side (28th Jul expiry). Nifty cumulative PCR closed at 0.89 for Jul 24.
• Derivatives data for Bank-nifty suggest max OI addition at 56700 for both call and put side with max OI at 58000 call and 56000 put side (28th Jul expiry). Bank-nifty cumulative PCR closed at 0.83 for Jul 24.

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Performance:

Indices

Source: NSE

Sector Gainers/Losers

Source: NSE

FII / DII ACTIVITY (WEEKLY)

Source: NSE

SUPPORT/RESISTANCE LEVEL FOR UPCOMING WEEK

Source: NSE

DAILY EXPONENTIAL MOVING AVERAGE

Source: NSE

TECHNICAL OUTLOOK

NIFTY (WEEKLY)

• Benchmark index traded with negative bias in the previous week before closing with bearish candlestick formation on the weekly chart
• Benchmark index is likely to trade volatile in the coming week
• Benchmark Index has support at 23,200–23,000 level and resistance at 24,300–24,500 level

BANKNIFTY (WEEKLY)

• Banking index underperformed the benchmark and closed with bearish candlestick formation on the weekly chart
• Banking index is likely to perform in line with the Benchmark index in the coming week
• Banking index has support at 55,500-55,000 and resistance at 58,000-58,500 level

FINNIFTY (WEEKLY)

• FINNIFTY index underperformed the banking index and closed with bearish candlestick formation on the weekly chart
• FINNIFTY is likely to trade in line with the banking index in the coming week
• FINNIFTY has support at 25,300-25,100 level and resistance at 26,500-26,700 level.

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Market FAQs – Weekly Summary

1. Why did Nifty decline sharply this week?

Nifty witnessed selling pressure primarily due to weakness in private banking stocks, cautious global sentiment, and continued foreign institutional selling, despite strength in select IT and auto stocks.

2. Why did Bank Nifty underperform the broader market?

Bank Nifty declined more than the benchmark due to significant weakness in major private banks, including HDFC Bank and Axis Bank, which carry substantial index weight.

3. Which sectors performed the best during the week?

Nifty FMCG was the best-performing major sector, delivering a positive weekly return despite broader market weakness.

4. Which sector underperformed the most?

Nifty Private Bank was the weakest sector during the week, reflecting selling pressure across leading banking stocks.

5. What does the increase in India VIX indicate?

A higher India VIX suggests that market participants expect increased near-term volatility. However, VIX alone should not be used to predict market direction.

6. What do current FII and DII flows indicate?

FIIs remained net sellers while DIIs continued providing buying support, partially offsetting foreign outflows and contributing to market liquidity.

7. What are the important Nifty support and resistance levels?

Options data indicates support around 23,700, while resistance is observed near 24,800 and 25,000. These are technical reference levels and not guaranteed price targets.

8. What does a Nifty PCR of 0.89 imply?

A PCR below 1 generally indicates relatively higher call positioning than put positioning. It should always be evaluated alongside open interest, price action, and volatility.

9. Which stocks outperformed despite market weakness?

Bajaj Auto and HCL Technologies were among the strongest Nifty performers, while Punjab National Bank outperformed within the Bank Nifty index.

10. Should investors make investment decisions based only on weekly market analysis?

No. Weekly market analysis is intended for educational and informational purposes. Investment decisions should consider individual financial goals, risk tolerance, and independent research or advice from a SEBI-registered investment adviser.

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