Market Commentary (closing) for 18th August 2026 by Bajaj Broking
Market Closing Commentary
Indian benchmark indices opened on a weak note and remained under pressure throughout the session, ending below the crucial 24,200 mark. Rising geopolitical tensions and Brent crude oil prices trading above the $90 per barrel level continued to weigh on investor sentiment. The session also remained volatile and choppy amid the weekly Nifty expiry, while persistent weakness in the Indian rupee against the US dollar added to the pressure on domestic equities.
At close, the Nifty 50 declined 0.55% to settle at 24,154, while the Sensex fell 0.63% to close at 77,235.
On the sectoral front, Healthcare, Media, and Auto emerged as the key gainers, attracting selective buying interest and providing some support to the market. On the downside, IT, Realty, and PSU Banks remained the key laggards, witnessing sustained selling pressure during the session.
The broader market showed relative resilience compared with the benchmark indices. The Nifty Midcap 100 index declined 0.43%, while the Nifty Small cap 100 index remained largely flat, indicating selective buying interest and resilience in the smallcap segment despite the weak market conditions.
Nifty
Index formed a bearish candlestick pattern which maintained lower high and a lower low highlighting continuation of the corrective bias. The index in the process closed below the 50 days EMA.
Nifty is forming lower high and lower low in the last 8 sessions, index need to break the sequence and start forming higher high and higher low in the daily chart to signal pause in the current corrective trend.
Overall index is expected to extend the recent consolidation and trade in the broad range of 24,000-24,600 in the coming sessions.
Index in the last 11 sessions is seen consolidating in a range with a corrective bias, while retracing 50% of its previous 7 sessions sharp up move from 23,606 to 24,774. A shallow retracement of its previous up move highlights a higher base formation.
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 23,606 to 24,774.
Bank Nifty
Bank Nifty formed an inverted hammer like candle which remained contained inside previous session price range signaling consolidation with corrective bias around the 50 days EMA.
The broader 8 weeks consolidation range remains intact between 56,500 and 58,700. We expect the index to extend the current consolidation and only a breakout or breakdown will signal a directional momentum.
Within the consolidation index is facing resistance around 58,000 levels, a move above the same will open upside towards 58,500-58,700 levels.
In the smaller time frame Bank Nifty in the last 11 sessions is seen consolidating in a narrow range retracing just 50% of its previous 7 sessions up move from 56,023 to 58,248. A shallow retracement signals higher base formation.
On the downside, a decisive break below 57,000 (50 days EMA & rising trendline support) would signal extended corrective move towards the 56,500-56,200, being the confluence of 200 days EMA and the lower band of the broader consolidation range.
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