Market Wrap

Indian equities kicked off the week on a positive note, with the Nifty opening gap-up and holding gains through most of the session before mild profit booking pared intraday highs. The index still managed to close 0.40% higher, led by resilience in Metals as the Nifty Metal index formed a bullish candle at its 20-DEMA, hinting at possible near-term outperformance. Global markets provided a mixed backdrop Asian peers saw broad-based advances while European indices stayed muted. On the macro front, Fitch Ratings reaffirmed India’s sovereign rating at BBB- with a stable outlook, adding a layer of comfort to investor sentiment.

What’s Ahead

The coming days are expected to remain event-driven, with August F&O expiry on 28 August keeping markets in a tight range as option writers dominate positioning. With Ganesh Chaturthi holiday on 27 August, the shortened week may further limit momentum. However, Reliance Industries’ 48th AGM on 29 August could spark stock-specific volatility, while the GST Council meeting on 3–4 September potentially discussing new GST slabs effective from 22 September—will be a critical policy event to watch. Global market cues and sectoral rotations will continue to steer short-term sentiment.

Market Snapshots

Institutional Activity

Sectoral Performance

Technical Outlook

NIFTY 50

The NIFTY 50 closed at 24,967.75, gaining 97.65 points (+0.39%), led by a strong rally in IT heavyweights like Infosys, TCS, and HCL Tech, supported by the global tech momentum. Despite profit booking in financials, the index maintained a positive breadth with 33 constituents closing higher and no major draggers. On the technical front, Nifty faced selling pressure above 25,000, yet an imminent EMA crossover and improving RSI indicate a strengthening trend. With immediate supports at 24,775/24,656 and resistances at 25,160/25,280, a sustained move above 25,160 could open the door for a fresh breakout, while dips are expected to find buying interest near support zones.

Bank Nifty

The NIFTY BANK ended flat at 54,XXX (0.02%) after a volatile session, reflecting continued underperformance versus the broader market. Gains in IndusInd Bank and AU Bank were offset by losses in Canara Bank and Federal Bank, keeping the index range-bound. The weak RSI highlights cautious sentiment, with investors rotating away from financials after a strong YTD outperformance. Key levels to watch are support at 54,844/54,662 and resistance at 55,434/55,617. A breakout above 55,617 is needed for momentum revival, while downside risks remain if support at 54,662 breaks.

SENSEX

The SENSEX closed higher by 329.06 points (+0.40%) at 81,635.91, lifted by IT leaders and select large-cap strength, offsetting weakness in financials and consumer goods. Market breadth remained positive with 20 gainers vs 10 losers, underscoring underlying optimism. Technically, the index continues to respect support levels, with immediate support seen at 81,057/80,700 and resistance at 82,214/82,572. A close above 82,214 would confirm bullish continuation, while 80,700 remains the key level to defend on the downside.

FINNIFTY

The NIFTY FINANCIAL SERVICES index slipped marginally to 26,306.9 (-0.04%), reflecting mixed trends among its constituents. Heavyweights ICICI Bank and Kotak Bank weighed on performance, while HDFCAMC, Shriram Finance, and Bajaj Finance provided some cushion. The index continues to underperform the Nifty, with weak momentum indicators suggesting consolidation. For tomorrow, near-term support lies at 26,150/25,980, while resistance is placed at 26,480/26,620. A decisive move above 26,620 is needed to re-establish strength; otherwise, sideways consolidation may continue.