Stock Market Update: Sensex Up By 236 Points, Nifty Opens Flat Amid Positive Global Cues

The Indian stock market opened higher tracking gains in global markets, as crude oil prices extended declines on hopes of reopening of ‌the Strait of Hormuz. Nifty 50 opened 7.4 points, or about 0.03% higher, at 24,341.95, whereas Bank Nifty opened 114.45 points above its prior close. Sensex rose 236.01 points to 77,892.10.

The broader indices were mixed, with the Nifty midcap index rising 0.5%, while smallcap index ended marginally lower.

Foreign institutional investors (FIIs) extended their buying streak for the second consecutive session on August 25, purchasing equities worth Rs. 1,593 crore. Domestic institutional investors (DIIs) also remained net buyers, investing Rs. 230 crore in Indian equities.

Sensex Outlook

Technically, the Sensex after a weak opening took support near 77,100 and bounced back sharply. From the day's lowest point, the market recovered over 500 points. 

This recovery from lower levels and the bullish candle on the daily chart indicate a further uptrend from the current levels. 

“For day traders, the 77,300 would act as a key support. If the market manages to trade above this level, the rally could continue towards 78,000-78,200. On the flip side, if the index falls below 77,300, the uptrend would become vulnerable. Below this level, traders may prefer to exit their long positions,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.

Nifty 50 Outlook

The Nifty 50 formed a bearish candle with shadows on both sides, indicating consolidation and stock-specific activity. 

The 24,130 is an important level to watch on the downside. If the Nifty sustains above this zone, a move towards 24,280 and then 24,360 could be possible.

A decisive move above 24,360 could strengthen the recovery and open the way towards 24,600 in the coming weeks. On the other hand, failure to cross the 24,360 resistance could keep the index within a broader consolidation range of 24,000-24,350, Bajaj Broking said.

Nifty 50 broadly moving within 24,000-24,600 in the coming sessions. The index also has stronger short-term support around 24,000-23,800, supported by multiple technical indicators and previous market levels.

Also Read: US Stock Market Rises as Chip Stocks Rebound Before Nvidia Earnings Report

Bank Nifty Outlook 

The Bank Nifty also remained volatile and formed a bearish candle with a higher high and lower low. The index closed near its 50-day EMA, with profit booking at higher levels.

The broader consolidation range for Bank Nifty remains between 56,500 and 58,700. The index faces immediate resistance around 58,000. If the index remains below 58,000, it could move towards 57,000 and 56,500. The 56,500 zone is important as it coincides with the lower end of the broader consolidation range and the 200-day EMA.

On the upside, a sustained move above 58,000 could push Bank Nifty towards 58,500-58,700 in the coming weeks.