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Below the Quote on Weekly Market Wrap 22nd Aug 2025 by Amol Athawale, VP-Technical Research, Kotak Securities

In the last week, the benchmark indices witnessed volatile activity. After a roller-coaster activity , the Nifty ended 1 percent higher, while the Sensex was up by 700 points. Among sectors, the Auto Index outperformed, rallied  5 percent, whereas the Defence Index shed over 1 percent. During the week, the market opened with a gap up, but after a promising uptrend rally on last Friday, it experienced profit booking at higher levels.

Technically, the 25,000/81900 level or the 50-day Simple Moving Average (SMA) will be key for traders. Below this level, the correction could slip to the 20-day SMA, or around 24,730-24,700/81100-81000. Further downside may also continue, potentially dragging the index down to 24,600-24,500/80700-80400. Conversely, a fresh uptrend rally is possible only after the index sustains above 25,000/81900 or the 50-day SMA. The immediate resistance for the index would be at 25,200/82500. A successful breakout above 25,200/82500 could push the market towards 25,500/83300.

For Bank Nifty, the short-term trend remains weak, but a fresh sell-off is possible only if the support zone at 54,900 is broken. Below this, it could decline to 54,500-54,200. On the upside, if the index sustains above the 20-day SMA or  55,700, it could rally towards the 50-day SMA at 56,500 and then further to 56,800.

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