What to expect from Indian stock market in trade on August 26 ahead of Trump tariffs

By Admin

26 Aug, 2025

The Indian stock market is set for a cautious start on Tuesday, August 26, as investors brace for the impact of global weakness and looming US tariffs on India. Trends on the Gift Nifty indicate a negative opening, with the index trading near 24,905 levels about 85 points lower than the Nifty futures’ previous close.

On Monday, domestic markets staged a positive close with the Sensex rising 329.06 points, or 0.40%, to 81,635.91, while the Nifty 50 ended 97.65 points higher at 24,967.75, holding above the 24,900 mark. However, the short-term outlook now looks volatile with key global and tariff-related developments in focus.

Sensex Outlook

The Sensex formed an inside body candle on daily charts, signaling indecisiveness among traders. Analysts believe the market texture is currently non-directional, making level-based trading an ideal strategy.

• Resistance: A breakout above 81,800 could lift the Sensex toward 82,300 – 82,500.
  
  

• Support: The immediate support lies between 81,400 – 81,300. A drop below these levels may drag the index towards 81,000 – 80,800.
  
  

Nifty 50 Outlook

The Nifty 50 formed a modest green candle on Monday, suggesting consolidation with a positive tilt. The index continues to trade above its key support zones and maintains a cautiously bullish bias.

• Resistance: The highest Nifty Call OI is seen at 25,200 and 25,500, marking strong hurdles. Analysts suggest that a decisive close above 25,100 could trigger fresh upside momentum, with potential targets around 25,200 – 25,300.
  
  

• Support: Strong support zones are positioned at 24,900 and 24,800, with immediate support around 24,860 and deeper support near 24,700.
  
  

Market experts suggest buying on dips as long as Nifty sustains above 24,860. However, traders should remain cautious given the possibility of volatility due to global and earnings-related cues.

Bank Nifty Outlook

Bank Nifty ended marginally lower on Monday at 55,139.30, forming a Doji candlestick on the daily chart, signaling consolidation around the 55,000 zone.

• Support: Key levels to watch are 55,030 and 54,900, with a crucial base near 54,800. A break below 54,800 may open room for further downside toward 54,400.
  
  

• Resistance: On the upside, immediate resistance is seen around 55,300 – 55,400, with stronger hurdles in the 55,950 – 56,160 range.
  
  

Analysts recommend waiting for confirmation of a bullish reversal before taking fresh long positions in Bank Nifty.

Key Takeaway

As Indian equities open for trade on August 26, caution will dominate sentiment. With the US tariffs looming and global markets showing weakness, investors should expect volatility in the near term. Experts advise adopting a level-based trading approach, focusing on support and resistance zones, and protecting positions with strict stop-losses.

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