Indian benchmark indices, NSE Nifty 50 and BSE Sensex, are expected to see a cautious and range-bound trading session on Tuesday (August 25) as technical indicators continue to point to subdued momentum and heightened near-term volatility. Analysts expect the Nifty to trade largely within the 24,000-24,400 range, while the Sensex could trade between 76,800 and 78,000, serving as make-or-break zones.
Sensex, Nifty close on Monday, August 24
The stock markets closed lower on Monday, as investors remained cautious ahead of fresh US sanctions on Iran, while elevated crude oil prices and rising domestic bond yields continued to weigh on market sentiment.
While the Sensex ended at 77,370.13, down 171.70 points or 0.22 per cent, Nifty 50 index closed at 24,219.05, declining 32.95 points or 0.14 per cent.
Stock Market Prediction Today, August 25 by experts
Experts expect a sideways-to-cautious trend heading into Tuesday, with major support levels at 24,000 for Nifty and 76,800 for Sensex.
Sensex Prediction for Tuesday, August 25
Sachin Gupta, VP – Technical Research, Choice Equity Broking, expects the Sensex to remain sideways with a cautious undertone in the near term as the index has weakened below multiple key moving averages.
He further stated the immediate support zone is placed at 76,800–76,970, while 77,800–78,000 remains the key resistance area. The broader trading range stands at 76,800–78,000, with the near-term bias remaining sideways.
“A sustained move below the support zone could extend the weakness, while a recovery above resistance would be required to improve the short-term structure,” Gupta stated.
Price action indicates that the early gap-up was met with profit booking, keeping the index under pressure for most of the session, the analyst noted.
From a technical perspective, Gupta stated the Sensex opened with a gap-up but failed to sustain the gains as profit booking emerged in the early session.
“The index also broke below its previous consolidation range, adding further selling pressure. After already trading below the 200-Day EMA, the Sensex today closed below its 20-Day, 50-Day and 100-Day EMAs as well, indicating a deterioration in the overall daily structure. However, a mild recovery from the day’s lower levels suggests some buying interest near support. The RSI stands at 47.15, below the neutral 50 mark and also below its RSI-based moving average of 52.77, reflecting weak momentum. The PCR at 0.79 further indicates a cautious derivatives setup,” he added.
Holding the 76,800–76,970 support zone will be important to prevent further downside, while a sustained recovery above 77,800–78,000 could help improve market sentiment.
“Until the Sensex reclaims its key moving averages and breaks above the resistance zone, the market is likely to remain volatile and range-bound,” Gupta concluded.
Nifty Prediction Today, August 25
According to Hitesh Tailor, Technical Research Analyst at Choice Broking, the Nifty continues to remain in a consolidation phase, with 24,000–24,140 emerging as the key support zone, while 24,350–24,400 acting as the immediate resistance zone.
“A sustained move above the resistance zone could open the way towards 24,500, while a break below 24,000 could weaken the broader recovery structure,” Tailor stated.
From a technical perspective, Tailor noted that the RSI stands at 47.85 against its RSI average of 53.01, indicating that momentum remains subdued and is yet to show a decisive recovery.
“The 50% Fibonacci retracement level is placed at 24,190, making the current zone technically important for the index,” he said, adding the 24,000 psychological mark remains the major make-or-break level, and holding above this zone would help preserve the broader recovery structure, supported by the rising trendline visible on the daily chart.
On the downside, he stated 24,000–24,140 remains the immediate support zone, while on the higher side 24,350–24,400 is the immediate resistance, followed by 24,500.
“Options data shows Put OI concentration around 24,200–24,000, suggesting support around the current trading zone, while Call OI is concentrated around 24,300–24,500, indicating supply at higher levels. With PCR at 0.70, the derivatives setup remains cautious, making sustained holding above the key support zone important for further recovery,” Tailor concluded.
Nandish Shah – Deputy Vice President, HDFC Securities said the Nifty slipped below its 20-DEMA, placed at 24,292, indicating continued short-term weakness.
“Nevertheless, the index is holding above its 50 and 100 day EMAs, both positioned near 24,200. The upward-sloping trendline support around 24,050 also remains intact, keeping the possibility of a meaningful recovery alive,” Shah stated.
The Nifty slipped below its 20-DEMA, placed at 24,292, indicating continued short-term weakness. Nevertheless, the index is holding above its 50 and 100 day EMAs, both positioned near 24,200. The upward-sloping trendline support around 24,050 also remains intact, keeping the possibility of a meaningful recovery alive, the analyst stated.
“The index continues to oscillate within the 24,000–24,400 band. A decisive breakout from this range could dictate the next directional move, whereas range-bound conditions may continue to favor stock-specific opportunities,” Shah said.
Market breadth turned weak, with an advance–decline ratio of 0.85, signaling profit booking in midcaps and smallcaps following yesterday’s pullback rally, he added.
(Disclaimer: The above article is meant for informational purposes only and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
