What to expect from Indian stock market in trade on August 22

By Admin

22 Aug, 2025

The Indian stock market is set for a cautious start on Friday, with benchmark indices likely to open lower as investors await US Federal Reserve Chairman Jerome Powell’s speech at the Jackson Hole Economic Symposium. Market sentiment is also being guided by signals from the derivatives market and global cues.

The Gift Nifty was trading around the 25,084 level, a discount of nearly 38 points compared to Nifty futures’ previous close, pointing towards a tepid opening for the domestic indices.

On Thursday, the markets extended their winning streak for the sixth consecutive session, with Nifty 50 closing above the psychological 25,000 mark. The Sensex rose 142.87 points, or 0.17%, to close at 82,000.71, while the Nifty 50 gained 33.20 points, or 0.13%, to settle at 25,083.75.

Sensex Outlook

The Sensex has formed a small candle on daily charts, suggesting indecisiveness between bulls and bears.

• Support zones: 81,700 and 81,500
  
  

• Resistance levels: 82,300 and 82,500
  
  

Shrikant Chouhan of Kotak Securities noted that while the broader market trend remains upward, day traders may find opportunities in buying intraday corrections and selling on rallies. However, if the Sensex dips below 81,500, a shift in sentiment could prompt traders to exit long positions.

Nifty 50 Outlook

The Nifty 50 formed a small bearish candle on Thursday, hinting at consolidation.

• Immediate support: 25,000
  
  

• Resistance: 25,300
  
  

According to Nagaraj Shetti of HDFC Securities, the index is witnessing a short-term breather within an uptrend. Sustaining above 25,300 would be crucial for further momentum.

Nilesh Jain of Centrum Broking added that the 50-DMA at 25,010 is acting as immediate support. A sustained move above 25,160 could lead to 25,250–25,350 levels. However, he cautioned against chasing the index at higher levels, recommending a buy-on-dips strategy instead.

Derivatives data shows the highest call open interest at 25,300 and highest put open interest at 25,000, reinforcing the near-term trading range.

Meanwhile, Dr. Praveen Dwarakanath of Hedged.in flagged that momentum indicators are turning down from overbought zones, hinting at possible reversal risks.

Bank Nifty Outlook

The Bank Nifty closed 56.95 points higher at 55,755.45 but formed a red candle, showing selling pressure at higher levels.

• Support levels: 55,500 (immediate), 54,900 (major)
  
  

• Resistance zones: 56,000–56,100, with upside potential to 56,500–56,900 if breached
  
  

Sudeep Shah of SBI Securities said the index is stuck in a narrow range, with RSI indicating indecision. A move above 56,100 could spark an upside rally, while a dip below 55,300 may trigger weakness.

Om Mehra of SAMCO Securities highlighted that Bank Nifty remains in consolidation, capped below key resistance. Similarly, Hrishikesh Yedve of Asit C. Mehta noted that the index is likely to stay within the 54,900–56,200 band until a decisive breakout occurs.

Key Takeaways for Traders

1. Markets may open soft due to global uncertainty and Powell’s upcoming speech.
   
   

2. Sensex support at 81,500 and Nifty support at 25,000 will be closely watched.
   
   

3. Traders should adopt a cautious stance, focusing on buying on dips rather than chasing momentum.
   
   

4. Bank Nifty’s movement will be crucial in determining overall market direction.
   
   

Disclaimer: The views and recommendations mentioned above are those of individual analysts and brokerage firms. Investors should consult certified financial experts before making investment decisions.