Weekly Market Outlook: Markets Continue to Face Pressure; Key Levels in Focus

Written by Jainam Resources

Last Updated on: July 21, 2025

Indian equity benchmarks — Nifty, Bank Nifty, and Sensex — remained under selling pressure this week, posting losses for a second consecutive time. All three indices formed bearish patterns on the weekly charts, hinting at persistent weakness. While buyers have shown some interest at lower levels, a clear breakout is still awaited to confirm trend direction.

Here’s a breakdown of the index-wise performance and what to watch in the coming week:

Nifty Outlook: Bearish Tone Persists with Limited Upside

Nifty opened the week at 25149.50 level, made a high of 25255.30 level, dropped to a low of 24918.65 level, and eventually closed at 24968.40 level, recording a weekly loss of 181.45 points.

On the weekly chart, Nifty formed a bearish candle with an upper shadow, a sign that sellers were active at higher levels. It also closed near the week’s low, indicating that bearish sentiment continues to dominate.

Key technical levels to watch:

• A sustained move above 25200 level may trigger buying interest and could push the index toward 25430–25565 level.
• On the downside, if Nifty breaks below 24900 level, it could fall further to 24850–24680 level.

The expected trading range for the coming week is 24800–25200 level, with a breakout likely to set the directional tone.

Bank Nifty Outlook: Lower Highs and Persistent Weakness

Bank Nifty opened at 56780.75 level, touched a high of 57276.55 level, fell to a low of 56204.85 level, and closed at 56283.00 level, marking a weekly drop of 471.70 points.

The weekly chart displays a bearish candle with a long upper shadow, again suggesting that sellers are active at higher price points. On the daily chart, the index opened with a downward gap and trended lower throughout the session.

Trading setup for the week ahead:

• If Bank Nifty crosses and sustains above 56500 level, it could rise toward 56800–57260 level.
• Conversely, if the index breaks below 56000 level, expect selling pressure that may take it down to 55400–55000 level.

Support Levels:

• 56500 – 56800 – 57260

Resistance Levels:

• 56000 – 55400 – 55000

The index is likely to remain range-bound between 55900–57300 level until a breakout confirms the trend.

Sensex Outlook: Breakdown Below Weekly Low Signals Caution

Sensex began the week at 82537.87 level, hit a high of 82784.75 level, touched a low of 81757.73 level, and closed the week at 81757.73 level, ending with a weekly loss of 742.74 points.

This week’s chart shows a long bearish candle with a lower high and lower low, closing below the prior week’s low — a clear sign of weakness. The session ended near its lowest point, reflecting strong selling pressure.

Levels to monitor:

• A move above 82220 level could trigger buying and push the index toward 82660–83000 level.
• However, failure to hold 81700 level may lead to further downside toward 81180–80700 level.

Resistance Levels:

• 82220 – 82660 – 83000

Support Levels:

• 81700 – 81180 – 80700

The index is expected to oscillate between 81700–82800 level in the near term.

Conclusion: Market Under Pressure, Breakout Needed for Clarity

The overall market structure remains weak, with bearish candles dominating the charts across all major indices. Despite some buying interest at lower levels, there’s no clear indication of a reversal yet. Until the indices break above or below their defined ranges, traders are advised to remain cautious and trade with strict stop-losses.

The coming week will be critical to assess whether these key support levels hold or break, which may set the tone for the next leg of the market move.