IGI Logo

Benchmark indices extended their bullish trajectory for the fifth consecutive session on Wednesday, August 20, buoyed by sustained investor optimism surrounding the Centre’s anticipated rationalisation of the Goods and Services Tax (GST) structure. The Nifty opened on a muted note but gathered upward momentum in the latter half, registering an intraday high of 25,088 before settling at 25,050.55, marking a gain of 69 points or 0.28%. Market sentiment was further bolstered by expectations of GST reform announcements ahead of Diwali, alongside a thaw in India-China geopolitical tensions—both acting as key catalysts for the ongoing relief rally.

On the sectoral front, performance was mixed. Nifty IT outperformed with a robust uptick of 2.69%, followed by Nifty FMCG (+1.39%) and Nifty Realty (+1.06%). Other sectors like Nifty Metal, Energy, Infra, and Auto closed with marginal gains, reflecting a broad-based yet selective buying interest. Conversely, profit booking weighed on Nifty Media, which was the worst performer, declining 1.98%, while Nifty Pharma and PSU Bank indices shed 0.44% and 0.27% respectively. The broader markets mirrored the benchmark’s resilience, with the Nifty Midcap 100 and Nifty Small cap 100 closing higher by 0.46% and 0.3% respectively, indicating continued risk appetite across market capitalisations.

Nifty Outlook

The index formed a second consecutive bull candle signaling continuation of the positive momentum as the index continues to hold above the 20- & and 50-day EMA. Going ahead, index sustaining above Monday’s gap area ( 24631-24852) will keep the bias positive and will gradually open upside towards 25,250 levels in the coming sessions. Immediate support for Nifty is placed at 24,600-24,500 levels being the Monday’s gap up area and the 100 days EMA. While key support is placed around the 24,000–24,200 range, marked by the confluence of the 200-day EMA and an ascending trendline drawn from the February and March 2025 swing highs, making it a key demand zone for the near term.

Bank Nifty Outlook

Bank Nifty formed a small bear candle signaling consolidation amid stock specific action. Buying demand in the last few sessions has emerged from the 100-day EMA. We expect the index to extend consolidation in the range of 54,800-56,300. Only a movement beyond this range will signal the next directional move. Key support area 54,800 and 55,000 — a region that aligns with the 100-day exponential moving average (EMA) and key Fibonacci retracement levels from the prior upward move. A breach below 54,800 will open downside towards the 54,000 levels. On the higher side, resistance is seen around the 56,000–56,300 range, which corresponds to the recent breakdown area and the 50% retracement of the entire decline (57628-54905).

Above views are of the author and not of the website kindly read disclaimer