Market Commentary (closing) for 20th August 2026 by Bajaj Broking
Market Closing Commentary
Indian benchmark indices staged a sharp rebound after a seven-session losing streak, supported by recovery across key Asian markets and short covering following the recent sell-off. Buying interest strengthened through the session. However, elevated crude oil prices and continued tensions between the US and Iran remain key concerns for the market.
At close, the Sensex gained 628.04 points or 0.82% to settle at 77,537.72, while the Nifty 50 advanced 153.55 points or 0.64% to close at 24,231.85.
On the sectoral front, all major sectoral indices ended in positive territory. Nifty Media emerged as the top performer, gaining 2.0%, followed by Realty, which advanced 1.4%. Auto, FMCG, Pharma, IT, Private Banks, and Infrastructure also ended higher, gaining between 0.4% and 0.8%. PSU Banks remained relatively subdued and ended marginally negative to flat.
The broader market also participated in the recovery. The Nifty Midcap 100 index gained 0.4%, while the Nifty Smallcap 100 index advanced 0.7%, indicating stronger participation in the broader market and a healthy risk appetite following the recent correction.
Nifty Outlook
Index formed a high wave candle with a higher high and a higher low and a bullish gap below its base (24,172-24,184) highlighting pullback from oversold territory. The index in the process managed to break the sequence of lower high and lower high and closed above the 50 days EMA signaling a pause in the last two weeks corrective decline.
Going ahead, a follow through strength above Thursday’s high 24,265 will signal extension of the pullback towards 23,400 levels in the coming sessions. While failure to move above Thursday’s high will signal consolidation in the range of 24,000-24,250.
Overall index is expected to extend the recent consolidation and trade in the broad range of 24,000-24,600 in the coming sessions.
The daily stochastic is rebounding from the oversold territory and has generated a buy signal moving above its three periods average thus supports the continuation of the pullback 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.
Bank Nifty Outlook
Bank Nifty formed a doji candle with a long upper shadow signaling selling pressure at higher levels. However, index formed a higher high and a higher low and a bullish gap below its base (57356- 57431) highlighting pullback from the oversold territory.
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 57,500-57,800 levels. Index sustaining below the same will open down side towards 56,500-56,200, being the confluence of 200 days EMA and the lower band of the broader consolidation range.
In the smaller time frame Bank Nifty in the last 13 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 higher side a move above 57,800 will open up side towards 58,200 and 58,700 levels in the coming weeks being the upper band of the recent consolidation.
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