Stock Market Prediction Today August 26: Indian benchmark indices are likely to see a cautious-to-positive session as trading resumes on Wednesday, August 26, after staging a late-session recovery in the previous day that saw Sensex and Nifty erase early losses and finish near their intraday highs as fag-end buying and a sharp decline in crude oil prices calmed investors’ sentiment.
While the Sensex ended near the day’s high, Nifty formed a bullish technical pattern after bouncing back from the crucial 24,100 support level.
Sensex, Nifty at close on Tuesday, August 25
Similarly, the 50-share NSE Nifty ended higher by 115.50 points, or 0.48 per cent, at 24,334.55 on fag-end buying.
Stock Market Prediction Today, August 26 by experts
For Sensex, the near-term trend remains sideways, with analysts identifying 77,000-77,125 as the immediate support zone and 77,800-78,000 as the key resistance area.
On the other hand, the experts said Nifty has formed a bullish engulfing pattern which has improved the short-term outlook, although the index needs to decisively cross 24,360 to sustain the recovery.
Sensex Prediction Today, August 26
Sachin Gupta, VP – Technical Research, Choice Equity Broking said, The BSE Sensex closed at 77,656.09, gaining 286.98 points (+0.37%), after a strong recovery during the latter half of the session.
“The index opened at 77,295.49, remained under pressure in the early trade, and slipped to an intraday low of 77,125.91. However, buying interest emerged during the afternoon session, pushing the index sharply higher to an intraday high of 77,666.39. The benchmark eventually closed near the day’s high, reflecting a noticeable improvement in sentiment towards the end of the session,” he stated.
From a technical perspective, Gupta said the Sensex opened slightly negative and remained range-bound through the morning session before witnessing a sharp recovery in the afternoon.
Further, the analyst said the strong buying momentum resulted in a bullish green daily candle, indicating improved demand from lower levels. “The index closed above its 50-Day and 100-Day EMAs, while the 20-Day EMA remains the immediate hurdle, as the Sensex closed just below this level. The RSI stands at 50.51, moving above the neutral 50 mark but remaining marginally below its RSI-based moving average of 52.01, suggesting that momentum is improving but needs further confirmation. Meanwhile, the PCR at 1.40 indicates relatively supportive derivatives positioning,” he added.
Gupta said the broader outlook remains sideways, but Tuesday’s sharp recovery has improved the immediate market structure. “Sustaining above the 77,000–77,125 support zone will be important for maintaining the positive undertone, while a sustained move above 77,800–78,000, along with a decisive crossover of the 20-Day EMA, could strengthen the recovery further. Until then, the Sensex is likely to remain range-bound, with traders closely monitoring the resistance zone for confirmation of a stronger directional move,” Gupta noted.
Price action remained range-bound during the morning session, with the 77,000–77,125 area providing immediate support. The sharp afternoon recovery helped the Sensex move back towards the upper end of its recent range, he said, adding that the immediate resistance is placed at 77,800–78,000, while the broader trading range remains between 77,000 and 78,000.
The near-term bias continues to remain sideways, with a decisive move beyond either end of this range likely to determine the next direction, the analyst further noted.
Nifty Prediction Today, August 26 by experts
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, said the consolidation movement of the last couple of sessions seems to have ended in the market as Nifty witnessed a sustainable bounce back from near the key lower support of around 24100 levels on Tuesday and closed the day with decent gains of 115 points.
He further stated a long bull candle was formed on the daily chart that has engulfed the choppy movement of the last two days in one session. Technically, this market action indicates a formation of ‘Bullish Engulfing’ pattern, Shetti noted.
“The short-term trend of Nifty seems to have turned up after the formation of new higher bottom on Tuesday. The next upside levels to be watched around 24500-24600 in the near term. Immediate support is placed at 24100 levels,” he further said.
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Nifty daily chart – Tuesday, August 25
Bajaj Broking Research, however, maintained a more cautious view, noting that the index failed to move above last week’s high of 24,360 and closed around its 50-day EMA.
According to the brokerage, the index formed a bearish candle with shadows in either direction signalling consolidation amid stock specific action.
The brokerage expects volatility to be high in Wedneday’s session due to the monthly F&O expiry. It said holding above 24,130 could trigger a pullback towards 24,280 and 24,360, while a decisive move above 24,360 could extend the recovery towards 24,600 in the coming weeks.
“While failure to move above last week high will signal consolidation in the range of 24,000-24,350,” it noted, adding that overall, the index is expected to extend the recent consolidation and trade in the broad range of 24,000-24,600 in the coming sessions.
“Nifty has short-term support placed at 24,000-23,800 levels being the confluence of the trendline support joining last 4 months lows, previous major gap area and 61.8% retracement of previous up move from 23,606 to 24,774,” the brokerage added.
