Market Wrap

On August 22, Indian equities traded in a volatile yet resilient fashion on weekly expiry day, with the Nifty oscillating in a tight 100-point band before settling 0.15% higher, just under the 25,100 mark. Sectoral churn remained in play, with pharma stocks rebounding sharply after recent weakness, while broader sentiment was capped by cautious global cues. Overnight weakness in U.S. indices—particularly the Nasdaq—spilled into Asian and European markets, keeping risk appetite muted. Meanwhile, FIIs continued as net sellers, and firm crude prices near $81 per barrel added to the cautious undertone.

What's Ahead

Going forward, market direction will be shaped by global developments, especially U.S. economic data and Fed commentary that may influence the interest rate outlook. Domestically, stock-specific moves from Q1 earnings and sectoral rotations are expected to drive intraday volatility. Additionally, currency trends and FII flows will remain key monitorables for short-term sentiment.

Market Snapshots

Institutional Activity

Sectoral Performance

Technical Outlook

Nifty

NIFTY ended marginally higher, extending its upward bias but facing selling pressure in the second half. An imminent EMA crossover, if sustained, may signal strengthening bullish momentum in the near term. RSI around 60 further reinforces improving trend strength, although participation was narrow, with more stocks declining than advancing. GST reform updates and the US Fed chair’s speech could drive volatility. Immediate support is placed at 24,891/24,772, while resistance lies at 25,276/25,396. A decisive breakout above 25,276 may open the gates for a move toward 25,500, while a slip below 24,772 could trigger short-term weakness.

Bank Nifty

BANK NIFTY witnessed a lackluster session, closing near the day’s low despite early strength. The index continues to face supply pressure, with RSI hovering close to 50, reflecting indecisiveness and lack of strong directional bias. Until a clear breakout emerges, consolidation within a narrow range looks likely. Near-term support is placed at 55,460/55,278, while resistance is capped at 56,051/56,233. A sustained move above 56,233 could reignite momentum, while a breakdown below 55,278 may accelerate downside pressure toward 55,000.

Sensex

SENSEX posted modest gains but overall breadth remained weak, highlighting selective buying in heavyweights rather than broad participation. The index continues to trade in a rising channel, and near-term sentiment will depend on whether it can hold above immediate support. RSI is stable, suggesting consolidation with a positive bias. Key support levels are at 81,422/81,063, while resistance stands at 82,580/82,938. A close above 82,938 may set the stage for a fresh rally toward 83,500, while sustained trade below 81,063 could invite profit booking.

FINNIFTY

FINNIFTY ended higher but reflected cautious undertones, with more than half the constituents closing in the red. The index is holding steady within its range, but participation remains stock-specific rather than sector-wide. RSI is stable, suggesting a neutral setup with a slight positive tilt. Key support levels are at 26,422/26,210, while resistance is seen at 26,793/26,980. A move past 26,980 could trigger fresh momentum, while a breakdown below 26,210 may invite weakness toward 26,000.