Post Market Analysis – July 21, 2025: Bulls Return as Banks Lead Rally

Post Market Analysis – July 21, 2025: Bulls Return as Banks Lead Rally

📅 Date: Monday, July 21, 2025
📊 Markets Rebound Strongly | DIIs Counter FII Selling | Bank Nifty Surges 1.35%

Indian stock markets staged a strong comeback on July 21, 2025, with benchmark indices bouncing back sharply led by banking and metal heavyweights. The Nifty 50 reclaimed the 25,000 mark, closing higher by 122 points at 25,090, while the Sensex advanced 443 points to end at 82,200.

The rally was supported by upbeat Q1 results from HDFC Bank and ICICI Bank, strong DII participation, and easing volatility.


🔍 Market Summary

IndexCloseChange
Nifty 5025,090🔼 +122 pts (+0.49%)
Sensex82,200🔼 +443 pts (+0.54%)
Bank Nifty55,240🔼 +1.35%
India VIX12.98🔽 –3.2%

📈 Top Market Drivers – July 21, 2025

🏦 1. Banking Stocks Power the Rally

  • HDFC Bank & ICICI Bank posted solid Q1 FY26 earnings.
  • SBI jumped on the announcement of a ₹25,000 Cr QIP, boosting PSU bank sentiment.
  • Bank Nifty saw strong traction with Axis Bank, Kotak Bank, and SBI among top gainers.

🏛️ 2. DIIs Continue Buying Spree

  • DIIs invested ₹2,103 Cr in equities.
  • Their consistent buying helped absorb FII selling worth ₹2,895 Cr, amid global rate worries.

📉 3. Volatility Drops

  • India VIX declined over 3%, signaling growing investor confidence and potential for further stability.

💰 FII-DII Activity – July 21, 2025

Investor TypeNet Activity
FIIs–₹2,895 Cr (Sellers)
DIIs+₹2,103 Cr (Buyers)

🔎 Note: FIIs remained net sellers, particularly in index futures, while DIIs absorbed the pressure with strong buying in banks and auto stocks.


🔧 Sectoral Performance Snapshot

SectorTrend
✅ Banking & FinanceStrong rally
✅ MetalsPositive
🔼 AutoMild gains
❌ IT & FMCGWeak
🔄 Infra & RealtyMixed action

📊 Top Stock Movers

📈 Gainers

  • HDFC Bank: 🔼 +3.1% – Strong Q1 results
  • Tata Steel: 🔼 +2.4% – Global steel demand rebound
  • Axis Bank: 🔼 +2.0%

📉 Losers

  • Infosys: 🔽 –1.2% – Weak margin commentary
  • Nestle India: 🔽 –0.9% – Profit booking
  • HUL: 🔽 –0.7%

🌍 Global Market Snapshot

  • Asia: Mixed; China’s Q2 GDP disappointed
  • US Futures: Pointed to positive open as bond yields eased
  • Crude Oil: Above $81/barrel, aiding energy sentiment

🗣️ Expert Commentary

“Private banks stole the show today. But persistent FII selling remains a hurdle. Watch 25,250–25,300 on Nifty for next resistance.”
– Rohit Gadia, Sr. Technical Analyst

“DIIs are anchoring the market. With earnings tailwind and easing VIX, we could see fresh highs if Nifty breaks 25,250.”
– Anjali Shah, Fund Manager


📆 Nifty & Sensex Technical Outlook – July 22, 2025

IndexSupportResistance
Nifty24,92025,250
Sensex81,45082,700

🛎️ Events to Watch:

  • Reliance Q1 FY26 Results
  • US Fed Chair Commentary
  • FII Derivative Positions

💼 Pro Trader Zone – Swing/Intraday Picks

StockStrategy
HDFC BankBuy above ₹1,710, Target ₹1,770, SL ₹1,675
Tata SteelBuy on dips near ₹144, Target ₹152
ICICI BankBreakout above ₹1,220 confirmed

🧠 Summary

The Indian market showed solid resilience on July 21 with banking and metals leading the upmove, bolstered by strong domestic flows and earnings tailwinds. FIIs remained cautious, but the DII buying support kept bullish momentum alive. With key earnings and macro events lined up, the market’s short-term trend hinges on Nifty’s ability to sustain above 25,000 and break past 25,250.

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