Nifty 50, Sensex Today: What to Expect from Indian Stock Market on August 25
The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Monday, tracking strong global market cues, after US Federal Reserve Chair Jerome Powell’s Jackson Hole speech hinted at interest rate cut at the Fed’s September meeting.
The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 24,953 level, a premium of nearly 55 points from the Nifty futures’ previous close.
Sensex and Nifty 50 Performance
On Friday, the equity market ended lower, with the benchmark indices snapping their six-day winning streak.
The Sensex dropped 693.86 points, or 0.85%, to close at 81,306.85, while the Nifty 50 settled 213.65 points, or 0.85%, lower at 24,870.10.
Sensex Prediction
Amol Athawale, VP technical Research, Kotak Securities, said, “Technically, the 81,900 level or the 50-day SMA will be key for traders. Below this level, the correction could slip to the 20-day SMA, or around 81,100 – 81,000. Further downside may also continue, potentially dragging Sensex down to 80,700 – 80,400. Conversely, a fresh uptrend rally is possible only after the index sustains above 81,900 or the 50-day SMA.”
The immediate resistance for Sensex would be at 82,500 and a successful breakout above 82,500 could push the index towards 83,300, he added.
Nifty 50 Prediction
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, said, “A long bear candle was formed on the daily chart which indicates a formation of short-term reversal pattern on the downside. The immediate hurdle of the down sloping trend line weighed high on the market and resulted in sharp weakness.”
According to him, the short-term trend of Nifty 50 is weak and expects the index to find support around the previous opening upside gap of 18th August around 24,800 – 24,700 levels by this week. On the other side, a sustainable upside above 25,150 could bring bulls back into the scene.
Bank Nifty Prediction
Nilesh Jain, Head – Technical and Derivatives Research Analyst (Equity Research), Centrum Broking Ltd, said, “The Bank Nifty resumed its downtrend after a brief pause, forming a bearish candle on the weekly chart. It underperformed the Nifty index, slipping below its 100-DMA at 55,360 and continues to trade beneath all key short-term moving averages.”
At this stage, the Bank Nifty index remains under pressure, with a breach below 54,900 likely to extend the decline towards 54,400. On the other hand, a move above the psychological mark of 56,000 could trigger a short-covering rally towards 56,500 – 57,000, he added.
Conclusion
The Indian stock market is expected to open higher on Monday, tracking strong global market cues. The Sensex and Nifty 50 are likely to face resistance at 82,500 and 25,100 respectively. The Bank Nifty index remains under pressure and may extend its decline towards 54,400 if it breaches 54,900.
Investors are advised to remain cautious and avoid aggressive long positions. It is essential to keep a close eye on the global market cues and the upcoming events that may impact the Indian stock market.
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