The Nifty 50 and Bank Nifty experienced a mild correction on July 22 after a day of rally, closing below their short-term moving averages with the formation of bearish candles on the daily charts. Most experts expect the consolidation to continue in the Nifty 50 as long as it sustains below 25,250. If it crosses above this level, 25,400 will be the next key level to watch. However, the key support remains at 24,900. Meanwhile, Bank Nifty is expected to trade in the 56,200-57,300 range in the upcoming sessions, with a breakout from this range providing direction for the index. A move above the upper range could push it toward record highs, while a drop below the lower range could see the index testing 56,000, experts said.
On July 22, the Nifty 50 corrected 30 points to 25,061, and the Bank Nifty dropped 197 points to 56,756. The market breadth was weak, with about 1,548 shares declining compared to 1,105 advancing shares on the NSE.
Nifty Outlook and Strategy
Vinay Rajani, CMT, Senior Technical and Derivative Analyst at HDFC Securities
The Nifty failed to close above its 5-day EMA resistance at 25,092. However, the positional support of the 50-day EMA remains intact and is currently placed at 24,943. On the upside, 25,255 could offer resistance for the Nifty. Traders should maintain their long positions with a stop-loss at the 50-day EMA. The global market technical setup remains bullish, which could act as a tailwind for the Indian markets. The primary trend of the Nifty has been bullish, as it has been holding above the 50-day, 100-day, and 200-day EMA. Any level above 25,255 could push the index toward new all-time highs, surpassing 26,277. However, a drop below the recent swing low of 24,882 could pull the Nifty toward positional support at 24,500.
Key Resistance: 25,255, 26,277
Key Support: 24,900, 24,500
Strategy: Buy Nifty Futures near 25,050, with a stop-loss of 24,882, targeting 25,400.
Ashish Kyal, CMT, Founder and CEO of Waves Strategy Advisors
Global indices like the S&P 500 and Nasdaq have been making fresh highs daily for almost a week. However, the Indian markets have failed to join the rally due to a lack of triggers. The Nifty has been moving lacklustre for several days. On July 21, prices managed to close above 25,000, but failed to show follow-up buying on July 22. The prices are trying to protect the important support zone near 24,920, but a move above 25,180 is essential to generate necessary upward momentum.
Over the short term, we have yet to see a close above the prior day's high for the past five trading days. The Daily Bollinger Bands and the lower trendline support are still intact, but price action is awaited. Traders should proceed cautiously until the range breaks either above 25,180 or below 24,920. A break above 25,180 could confirm a short-term reversal and lead to a move toward Gann levels of 25,361, with 24,920 acting as crucial support on the downside.
Key Resistance: 25,250
Key Support: 24,920
Strategy: Long positions can be created if the Nifty moves to 25,030 and breaks above 25,110, with 25,040 as a stop-loss and targets of 25,180 followed by 25,250.
Preeti K Chabra, Founder of Trade Delta
On the daily chart, the Nifty remains confined within a downward-sloping channel, though the pattern of higher lows suggests the presence of underlying support and a lack of directional conviction.
Volatility continues to decline, with the India VIX falling by 4.02% to 10.75, positioning it near the lower end of its recent range. This low-volatility environment reflects reduced market uncertainty.
From a derivatives perspective, the unwinding of in-the-money Call and Put positions suggests active repositioning by traders — possibly indicating expectations for a mild upward bias or continued consolidation.
Key Resistance: 25,200, 25,324
Key Support: 25,000, 24,900
Strategy: Given the current market structure and subdued volatility, traders may consider implementing a butterfly strategy at the ATM strikes to capitalize on the consolidative price action with a defined risk-reward setup.
Bank Nifty - Outlook and Positioning
Vinay Rajani, CMT, Senior Technical and Derivative Analyst at HDFC Securities
After opening with healthy gains, the Bank Nifty witnessed profit booking at higher levels, ending the session with a red candle. There is multiple top resistance in the zone of 57,300-57,400 for the index. On the downside, support is seen near 56,200. The index has been in a consolidation zone for the last four consecutive weeks. Any decisive move above or below the mentioned range would dictate the trend for the index. Given the primary uptrend, the bias is more on the bullish side for the Bank Nifty.
Key Resistance: 57,300, 57,400
Key Support: 56,200, 55,950
Strategy: Buy Bank Nifty Futures on dips at 56,500, with a stop-loss of 56,200, targeting 57,300.
Ashish Kyal, CMT, Founder and CEO of Waves Strategy Advisors
On Monday, the Bank Nifty found support at its 40-period EMA near 56,200, which also coincides with a trendline support. Following this, the index saw a bounce of over 1,000 points, primarily fueled by strong quarterly results from ICICI Bank and HDFC Bank. Despite positive news, the Bank Nifty failed to sustain above the 57,300 mark and reversed down by over 500 points. Overall, the index has been moving in a trendless manner, with wild swings in both directions.
Volumes have dried up, and in such scenarios, it's best to trade on an intraday basis and avoid positional trades unless a sustainable movement is observed in either direction.
The Bank Nifty failed to show sustained movement after making fresh highs in early July 2025. For now, a break above 57,300 is required to establish positive momentum. On the downside, a break below 56,200 — a crucial support level — could lead to panic selling.
Key Resistance: 57,600
Key Support: 56,200
Strategy: Short positions can be created if the price sustains below 56,600 for 15 minutes, with a stop-loss of 56,860 and targets of 56,340 followed by 56,200.
Preeti K Chabra, Founder of Trade Delta
On the daily chart, the Bank Nifty closed below its 20-day simple moving average (SMA) at 56,970, signaling short-term weakness. However, it continues to form higher lows, suggesting that broader bullish undertones remain intact on the daily timeframe.
From a derivatives perspective, the presence of in-the-money (ITM) Put writing, combined with unwinding in ITM Calls, indicates a reduction in bearish positioning, which may signal limited downside and a potential consolidation phase.
Key Resistance: 57,143, 57,350
Key Support: 56,500, 56,222
Strategy: Given the current range-bound setup and declining volatility, traders may consider implementing a butterfly strategy at the ATM strikes to benefit from expected consolidation while keeping risk controlled.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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