Stock Market Outlook Today, 23 July 2026: Sensex, Nifty Likely To Trade Cautiously as FIIs Continue Selling

Indian stock markets are likely to remain under pressure on Thursday, July 23, as investors continue to grapple with rising crude oil prices, persistent foreign institutional investor (FII) selling and geopolitical tensions in West Asia. With the June quarter (Q1 FY27) earnings season gathering pace, stock-specific action is expected to dominate trading, while benchmark indices may remain range-bound amid weak global cues.

Stock Market Outlook Today, 23 July 2026: Sensex, Nifty Prediction For Thursday

The domestic market ended Wednesday's session on a weak note, extending losses for the third consecutive trading day. Selling in heavyweight stocks, coupled with concerns over Brent crude prices nearing a five-week high and continued weakness in the Indian rupee, weighed on overall market sentiment throughout the session.

At the closing bell, the BSE Sensex tumbled 715.06 points, or 0.92%, to settle at 76,755.05, while the NSE Nifty 50 declined 191.45 points, or 0.79%, to close at 23,996.25, slipping below the crucial 24,000 mark.

Crude Oil, FII Selling and Global Cues to Remain Key Triggers

Market experts believe domestic equities are likely to remain range-bound with a cautious undertone as investors monitor geopolitical developments, global macroeconomic data and the ongoing earnings season.

"Indian equities are expected to trade sideways with a marginal negative bias in the near term amid continued geopolitical tensions in West Asia, Brent crude prices rising to near their five-week high of around USD 95/bbl and continued Foreign Institutional Investor selling. Stock-specific action is likely to dominate as the earnings season progresses. While investors will closely monitor global macro developments, including the ECB interest rate decision and US jobless claims," said Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd.

Apart from quarterly earnings, investors will also keep a close watch on movements in crude oil prices, the rupee, foreign fund flows and key global economic developments, all of which are expected to influence market direction in the near term.

Nifty Prediction Today, 23 July 2026: Can the Index Defend the 23,800 Support?

According to Bajaj Broking Research, the Nifty has turned technically weak after witnessing three consecutive sessions of decline.

The brokerage noted that the benchmark index formed a sizeable bearish candlestick pattern with a lower high and lower low, indicating continued corrective momentum. The index has also slipped below its rising trendline connecting the previous major lows, signalling a weakening short-term trend.

"Overall index to extend consolidation in the range of 23,800-24,350. Only a breakout or breakdown will signal next directional trend in the index. Short term support is placed at 23,800 levels, being the confluence of the almost identical low of the last 5 weeks and 50 days EMA," said Bajaj Broking Research.

The brokerage further stated that a decisive break below Wednesday's low of 23,961 could drag the Nifty towards the important support level of 23,800. On the upside, the 24,200 mark is expected to act as an immediate resistance. A sustained move above this level could signal a pause in the ongoing corrective phase.

Bank Nifty Prediction for Thursday

Bank Nifty also remained under pressure on Wednesday, extending its decline for the third straight session. According to Bajaj Broking Research, the banking index formed a sizeable bearish candle with a lower high and lower low, indicating continued profit booking after failing to sustain near the upper end of its six-week consolidation range.

The brokerage observed that Bank Nifty has been consolidating between 56,500 and 58,700 over the past six weeks and is now approaching the lower end of this range. A decisive breakout or breakdown is expected to determine the next major directional move.

"Key support is placed at 56,500 levels being the 20-week EMA and lower band of last six weeks range. A breakdown below the same will open downside towards 55,500 levels in the coming sessions. On the higher side key resistance is placed at 58,700 levels only a breakout above the same could trigger the next leg of the rally towards 59,300 and eventually 60,000 levels in the coming weeks," said Bajaj Broking Research.

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