Benchmark indices Nifty and Sensex opened the week on a muted note on July 21 as investor sentiment remains fragile with the August 1 trade tariff deadline looming. The likes of Reliance Industries, HDFC Bank, and ICICI Bank were buzzing in trade in today's session. The broader market mirrored weak trends to edge lower in the morning.

At about 9:20 am, the Sensex was down 211.58 points or 0.26 percent at 81,546.15, and the Nifty was down 79.15 points or 0.32 percent at 24,889.25. About 1305 shares advanced, 1699 shares declined, and 180 shares remained unchanged.

"Investors adopted a cautious stance due to the disappointing start of the earnings season and ongoing uncertainty surrounding the US-India trade deal. We expect the index to remain in a consolidation phase with a negative bias in the near term, driven by a weak start to the earnings season and prevailing global uncertainties", Ajit Mishra, Senior Vice President at Religare Broking said.

"Globally, market participants will monitor trade deal updates, which could influence FII flows and currency movements. At the same time, uncertainty persists as global markets recalibrate expectations for Federal Reserve rate cuts, amid sticky inflation and trade-related tensions," he added.

Markets opened on a mixed note on July 21, with sectoral indices showing a largely muted trend. The Nifty Metal index was the top gainer in early trade, up 0.94 percent, followed by modest gains in Nifty Media, Nifty Bank, and Private Bank indices. On the flip side, selling pressure was visible in IT, oil & gas, and consumer durables, with Nifty IT slipping 0.73 percent and PSU Bank and Oil & Gas indices down over 0.7 percent each. Broader markets, too, were subdued, with the Nifty Midcap 100 and Smallcap 100 indices trading slightly in the red. Meanwhile, India VIX edged up 1.49 percent, indicating a slight uptick in market volatility.

HDFC Bank Ltd, India's largest private lender, rose 2 percent after it posted a decent June quarter, with Net Interest Income rising 5.4 percent YoY to Rs 31,438 crore. The bank’s net profit stood at Rs 18,155 crore. The bank also declared a 1:1 bonus issue and a Rs 5 special interim dividend. Nomura, Nuvama Institutional Equities and Bernstein have given a buy call on the stock.

ICICI Bank shares gained 2 percent after the lender reported its June quarter results on July 19, showing year-on-year growth in both core income and profitability. CLSA has given an outperform rating, while Nomura has a buy call. Out of 52 analysts, 49 have a 'Buy' and none have suggested a 'Sell'.

Technically, the Nifty remains subdued below its 10-day and 20-day exponential moving averages, both hovering near the 25,200 zone, reinforcing continued supply pressure at higher levels. The short-term structure remains in a downward trajectory. The 25,000–25,200 range has now turned into a formidable supply zone. However, as long as the index holds above the 24,800 mark, there remains a window for near-term support to hold. A decisive close above 25,200 would be required to reverse the short-term bearish tone and shift sentiment in favour of the bulls. Currently, the RSI is trending below the 50 level, underlining a lack of upside momentum and reinforcing the cautious sentiment.

Tata Steel, HDFC Bank, Hindalco, ICICI Bank, and UltraTech Cement were the top gainers on the Nifty. Laggards on the index included IndusInd Bank, Wipro, Reliance Industries, Axis Bank, and JSW Steel.