Market Wrap

Indian equity markets staged a strong recovery on the monthly expiry day, with the Nifty rising 0.48% to reclaim the 24,300 mark after finding support near its 50-DEMA. Pharma emerged as the strongest sector, while PSU banks also contributed to the broader recovery. The new Closing Auction Session (CAS) added to volatility, particularly during the final hour.

Global cues were broadly supportive, with Asian and European markets trading higher despite a mixed overnight close in the US. Easing crude prices offered some relief for India amid continuing US-Iran tensions and fresh sanctions, although geopolitical risks remain a key source of uncertainty.

What's Ahead

For the 26 August session, the key technical test will be whether Nifty can sustain above 24,300 following the expiry-led rebound. Traders will closely track crude prices, developments around Iran and FII activity for direction. Globally, Nvidia’s earnings, US consumer-confidence data and housing indicators will be in focus for clues on technology valuations and the strength of the US economy.

The recovery remains encouraging, but its durability will depend on whether buying broadens beyond pharma and other defensive pockets.

Market Snapshots

Institutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The Nifty 50 gained 0.48% to close at 24,334.55 after recovering from an intraday low of 24,115.45, indicating sustained buying interest through the session. The index reclaimed the 24,300 zone and the RSI moving above 50 points to improving momentum and a mildly bullish near-term bias. Positive market breadth, with 34 stocks advancing against 16 declining, further supports the recovery. On the upside, 24,488 and 24,583 remain the key resistance levels, while 24,181 and 24,086 are the immediate supports. A sustained move above 24,488 could strengthen the recovery, whereas a break below 24,086 would weaken the near-term setup.

BankNifty

The Bank Nifty ended almost flat at 57,514.20, declining 0.02% after trading between 57,231.25 and 57,653.85. The index recovered from its intraday low but failed to sustain gains, reflecting a lack of clear directional momentum. The RSI remains close to the 50 mark, keeping the technical bias broadly neutral. The index faces immediate resistance at 57,768 and 57,925, while 57,260 and 57,104 remain the key support levels. A decisive breakout above 57,925 would improve the setup, while a sustained move below 57,104 could increase selling pressure.

NIFTY FINANCIAL SERVICES

The Nifty Financial Services index advanced 0.34% to 26,246.95, supported by steady buying across housing finance, NBFCs and selected banking stocks. Positive breadth, with 12 constituents advancing against 8 declining, indicates moderately constructive participation. The index is currently positioned below the immediate resistance zone of 26,481–26,626, while 26,013 and 25,868 provide key near-term supports. Holding above 26,013 would keep the recovery structure intact, with a breakout above 26,626 potentially opening the way for further gains.

Sensex

The Sensex rose 0.37% to close at 77,656.09, supported by broad-based buying, with 24 of its 30 constituents advancing. The strong breadth and gains across major names indicate improving underlying sentiment, although the index remains below its immediate resistance zone. 78,159 and 78,470 are the key upside levels to watch, while 77,153 and 76,842 act as near-term supports. Sustaining above 77,153 would keep the short-term recovery bias intact, whereas a break below 76,842 could signal renewed weakness.